British computer firm Raspberry Pi has quietly made its mark, delivering a modest yet noteworthy performance. The company, known for its affordable single-board computers (SBCs), has reported core earnings of $37.2 million for the year ending December 31, 2024.
This figure slightly surpasses the consensus estimate of $36.6 million, offering a pleasant surprise to investors. Raspberry Pi, which went public in June last year, has carved out a niche with its low-cost SBCs, accessories, and microcontrollers. These devices find their way into smart-home systems, robotics, automated systems, and even video game emulators.
The flagship Raspberry Pi 5, along with the company's semiconductor units, played a crucial role in this year's financial performance. However, it's not all smooth sailing. Its earnings are down 15% from 2023, primarily due to inventory challenges that impacted profits in the second and third quarters.
In 2024, it reported a revenue of $259.5 million, a modest 2% decrease from the previous year. Gross profit also saw a slight decline, down 4% to $63.2 million. The company's profit before tax took a more significant hit, dropping 57% to $16.3 million. Basic earnings per share fell to 6.5 cents, a 67% decrease.
Despite these hiccup, Raspberry Pi remains optimistic, forecasting "sustainable" sales growth for 2025 and anticipating a steady increase in demand throughout the year. The company ended the year with a healthy cash reserve of $45.8 million, a 9% increase from 2023.
Raspberry Pi's Recipe for Success
While it reported a slight dip in revenue and profit, the company has plenty to celebrate, including a successful IPO and a slew of new product launches. It unveiled 22 new products compared to just six in 2023. Highlights include the Raspberry Pi 5, which sold 1.9 million units, and the debut of AI hardware products in collaboration with Hailo and Sony. The company also introduced the next-generation RP2350 microcontroller, supporting the Raspberry Pi Pico 2.
CEO Eben Upton described the company's initial public offering as a "watershed moment", raising $180 million to support the Raspberry Pi Foundation and $40 million for the company itself.
With inventory levels normalized, Raspberry Pi is optimistic about 2025 and plans to continue its aggressive product release schedule, which is expected to boost gross profit per unit. It said it has secured enough memory supply to meet demand in the coming months.
Should Raspberry Pi continues to innovate and expand its product offerings, it seems poised to maintain its position as a small but significant player in the tech industry. The company is riding high on its recent successes, but it remains cautious about future margins. Investors will be watching closely to see if the growth trajectory of this British underdog continues.
