Raspberry Pi has seen significant revenue growth following its IPO, reported in its first results as a public company.
- The company recorded revenues of $144m in the first half of the year, marking an impressive 61% increase.
- However, the firm has warned of ‘normalising’ sales and slowing demand in the latter half of the year.
- CEO Eben Upton highlighted the company’s strong product offering and future growth potential, amid a backdrop of unwinding inventory levels.
- Raspberry Pi shares have seen a 6.4% increase, reflecting investor confidence despite cautious sales forecasts.
In its inaugural results as a publicly listed company, Raspberry Pi experienced a remarkable surge in sales, achieving revenues of $144 million for the initial six months, a substantial increase of 61% from the previous year. This growth underscores the successful reception and execution of its initial public offering (IPO).
Despite these impressive figures, the company has cautioned stakeholders about a deceleration in sales growth as the year progresses. The firm attributes this to a process of demand ‘normalisation’ among its diverse product range, influencing its financial forecasts for the remaining months.
Eben Upton, CEO of Raspberry Pi, expressed optimism about the future, citing the company’s exceptional team, leading-edge products, and a strategic roadmap aimed at fostering continued customer engagement and expansion. However, he also addressed the ongoing reduction in higher-than-usual customer and channel inventory levels that were conspicuous around the IPO period.
The company’s shares witnessed a notable rise, climbing by 6.4% to 371 pence, which indicates a strong investor sentiment as the company navigates through post-IPO adjustments. This uptick in share price coincides with an increase in total board sales volumes by 31%, driven by the burgeoning sales of compute modules and the release of 1.1 million units of the Raspberry Pi 5 in October 2023.
The research and development (R&D) spending of Raspberry Pi saw a significant boost during this period, with the company amplifying its engineering team from 46 to 61 staff members. The firm’s market debut in June saw its shares soar 40%, a promising development for the London Stock Exchange amid a challenging climate in the technology IPO sector.
Initially priced at 280 pence, the firm’s IPO granted it a market capitalisation of £514.6 million, raising £178.9 million, including £31.4 million for the company itself. Raspberry Pi’s induction into the FTSE 250 and its recognition with the London Stock Exchange’s Green Economy Mark highlight its commitment to energy-efficient computing solutions.
Raspberry Pi’s initial public offering has significantly bolstered its market presence and financial performance, despite impending challenges.
