- Pre-tax profit down 43% to $6.2 million
- Shares down 42% year-to-date
- On track to meet full-year guidance
Shares in Raspberry Pi (RPI) slumped in morning trading as the affordable computer designer reported a 7% fall in adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) to $19.4 million for the half year to June.
Raspberry Pi also reported a 6% fall in first-half revenue to $135.5 million. However the Cambridge-headquartered company said the second half has started well and it remains on track with full-year profit expectations.
On the plus side, revenues from direct sales of SBCs (single-board computers) and compute modules increased 21% compared to the first half of 2024 and by 27% sequentially reflecting strengthening demand from existing and new OEM (original equipment manufacturer) customers.
Seven new products were also launched in the first half of the year.
WHAT DID THE CEO SAY?
Eben Upton, CEO of Raspberry Pi said: ‘We continued to build momentum in the half, with growing demand from our reseller channel and OEMs driving an 8% sequential increase in direct unit shipments and a significant customer order backlog at the end of June.
‘Our growing pipeline of OEM opportunities, disciplined supply chain management and strong product roadmap position the business for future growth.
‘For the full year, we remain on track with profit expectations unchanged, underpinned by strong anticipated sales volumes and unit economics in the second half. We are encouraged by the uptake of new products, expanding OEM engagement, and the first instance of semiconductor volumes exceeding board volumes.’
TARIFF PAIN DISMISSED
Russ Mould, investment director at AJ Bell said: ‘It feels like quite a lot is riding on Raspberry Pi – which represented the most meaningful tech IPO in the UK in years when it listed in June 2024.
‘There will be widespread disappointment then to see its latest results prompt further share price losses with the stock still above its IPO price but down materially from the levels seen at the start of this year. This reflects concern that the group will face real pain from tariffs on components – despite the company largely dismissing these concerns.
‘Revenue and profit are meaningfully lower for the period as the company has struggled to match a strong first half of last year – the company’s attempt to get the market to focus on a sequential improvement on the second half of last year is failing pretty miserably.
‘Founded by chief executive Eben Upton in 2012 with the premise of making computing ‘more accessible to young people’, Raspberry Pi designs and develops low-cost SBCs (single board computers) and computer models for industrial customers, enthusiasts and educators around the world.
‘The company is still relatively immature, and investors can probably not expect profits to go up in a straight line, nonetheless any further disappointments and it may find that patience is running thin on the ground.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (James Crux) own shares in AJ Bell.
