FTSE 250 group Raspberry Pi beats profit expectations

Raspberry Pi has surpassed its expectations in its first set of financial results since it floated on the London Stock Exchange earlier this year.

The Cambridge-based computer company, which was added to the FTSE 250 on Monday this week, raised nearly £179m at its oversubscribed IPO in June, said revenue soared 61 per cent to $144m (£108m) in six months to 30 June, while profit jumped 47 per cent to $34.2m (£25.6m).

Shares jumped over five per cent when the opening bell rang on Tuesday.

As profit surpassed internal expectations, Raspberry Pi expects performance to be weighted towards the first half. It anticipates higher unit volumes in the second half, supported by new product launches.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 55 per cent year on year to nearly $21m (£15.7m).

Raspberry Pi makes single-board computers (SBCs), which are small, affordable computers with built-in microchip and memory.

The tech company reported “strong uptake” of its latest flagship SBC, Raspberry Pi5 and the successful ramp to production of its second-generation microcontroller platform. It also launched the Raspberry Pi AI Kit.

But the highlight of the first half for Raspberry Pi was its public listing in London, which was welcomed with open arms amid a barren period for the City’s starved markets. “The IPO was the watershed moment of the first half,” said chief executive Eben Upton.

He added: “The higher than usual customer and channel inventory levels which were evident at the time of the IPO have continued to unwind, and there is a growing sense that this will have concluded by the year end.

“We have an extraordinary team, a world class product set backed up by an exciting future roadmap, and a loyal and engaged customer base that we can continue to grow.

“In the second half, we have further planned product releases and a number of initiatives to further expand our engagement within our Industrial and Embedded market.”

The company said it has recovered from pandemic-related shortages, with almost all Single Board Computers (SBCs) and Compute Module products now freely available.