Raspberry Pi, the British maker of affordable microcomputers, has reported stronger-than-expected profits in its first financial update since going public on the London Stock Exchange in June.
The company, which raised £178.9 million through its initial public offering and joined the FTSE 250, saw year-on-year sales rise 61% to $144 million in the six months to June 30, while pre-tax profits were flat remained at £10.8. million.
The company’s shares rose more than 10% on Tuesday to settle at 6.6% at 371¼p. Raspberry Pi sold 1.1 million units of its latest model, the Raspberry Pi 5, launched in October 2023, significantly contributing to its first half performance, which exceeded internal expectations.
Despite recovering from the supply chain disruptions caused by the pandemic, Raspberry Pi continues to face some challenges, especially in the area of semiconductor supply. CEO Eben Upton explained that persistent demand imbalances caused by overordering during shortages are slowly being corrected.
Analysts at Jefferies noted that while the second half could be slightly weaker due to continued inventory corrections and sales of lower value products, the outlook for 2025 remains positive, with favorable memory prices and higher sales.
Originally founded as a charity in 2008 to encourage more young people to study computer science, Raspberry Pi became a commercial success, with the Raspberry Pi Foundation retaining a 47% stake after the IPO. The company has expanded its offerings, including new products focused on AI hardware, in partnership with Hailo AI, and its first cloud product, Raspberry Pi Connect, which enables remote access to devices for $6 per year.