Raspberry Pi Holdings plc (LON:RPI), a leader in low-cost, high-performance computing, has announced its results for the six months ended 30 June 2024.
Financial Highlights
| H1 2024 | H1 2023 | Change | |
| Revenue ($m) | $144.0m | $89.3m | +61% |
| Gross profit ($m) | $34.2m | $23.2m | +47% |
| Gross margin (%) | 23.8% | 26.1% | -2.3ppts |
| Unit volume (m) | 3.66m | 2.80m | +31% |
| Adjusted EBITDA* ($m) | $20.9m | $13.5m | +55% |
| Basic Earnings Per Share (EPS) (c) | 3.92c | 4.39c | -11% |
| Adjusted EPS (c)* | 5.84c | 4.60c | +27% |
| Net cash ($m) | $40.4m | $36.9m | +9% |
*The Group uses certain measures in addition to those reported under IFRS, under which the Group reports. These Alternative Performance Measures (“APMs”) are not considered a substitute for, or superior to, the equivalent statutory IFRS measures. These APMs are explained, defined and reconciled in the APM section and are applied consistently.
· First half profitability was stronger than expected with Gross Profit of $34.2m and Adjusted EBITDA of $20.9m up 55% against a supply-constrained comparative H1 2023.
· Volumes were marginally lower than expected, with sales skewed towards higher margin variants, yielding stronger unit economics.
Operational Highlights
IPO and FTSE 250 index inclusion
· Successful IPO raising £178.9 million (c. $225 million), including £31.4m ($40m) for the Company.
· FTSE 250 index inclusion confirmed as part of the September FTSE Quarterly review.
· Awarded the London Stock Exchange’s Green Economy Mark based on the energy efficiency benefits of our computers.
Supply chain recovery:
· Completed recovery from pandemic related shortages, with almost all Single Board Computers (SBCs) and Compute Module products freely available in channel.
New product introduction:
· A major product transition, with Raspberry Pi5 selling 1.1m units in H1 following introduction at the end of October 2023.
· Successful launch of first-party AI hardware product (Raspberry Pi AI Kit), in collaboration with Hailo.
· Debut of cloud connectivity product (Raspberry Pi Connect) with 50k users since launch in May 2024.
· Production ramp of RP2350 microcontroller, supporting introduction of Raspberry Pi Pico 2 and partner hardware products in August.
Outlook
· Having previously expected performance to be weighted towards the second half of the year, this is no longer the case, with profitability in the first half ahead of internal expectations.
· Higher unit volumes anticipated for the second half, supported by new product launches, with an expected product mix contributing to lower unit economics.
· Raspberry Pi continues to observe higher than usual customer and channel inventory levels, however we are seeing signs that this should normalise towards the end of the year.
· Expectations for the full year remain unchanged.
Eben Upton, CEO of Raspberry Pi said:
“The IPO was the watershed moment of the first half, with Admission to trading just two weeks before the period end. In continued pleasing trading in the first half, we saw strong uptake of our latest flagship SBC, Raspberry Pi5, the launch of the Raspberry Pi AI Kit, and the successful ramp to production of RP2350, our second-generation microcontroller platform. 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”.
Hybrid analyst and institutional investor presentation
Eben Upton, CEO, and Richard Boult, CFO, will host a hybrid analyst and institutional investor briefing today at 09:00 BST at the offices of Peel Hunt, 7th Floor, 100 Liverpool St, London EC2M 2AT.
Those wishing to attend the event in person or online, please register via [email protected].
Investor presentation
Management will also host a live virtual presentation relating to the results via the London Stock Exchange’s SparkLive platform at 14.30 BST on 24 September 2024, for all investors and analysts unable to join the earlier meeting.
To register for the event, please use the following link:
https://sparklive.lseg.com/RaspberryPi/events/bf496d03-a8ad-4929-a20b-82568b979921/raspberry-pi-half-year-results-2024
