Shares in Raspberry Pi surged on Tuesday following the release of its first earnings report since its debut on the London Stock Exchange in June. The UK-based computer manufacturer, known for producing small and affordable computers, reported profits that exceeded expectations. Although sales volumes were slightly lower than anticipated, the company’s focus on higher-margin products contributed to increased profitability. As a result, shares rose by 8% to 376p, surpassing their initial offering price of 280p.
Raspberry Pi’s successful initial public offering was seen as a significant win for the London market, which has struggled to attract technology companies that typically prefer listing in New York. With a valuation of £542 million at IPO, Raspberry Pi demonstrated the potential for success within the London stock market.
In its earnings report, Raspberry Pi revealed a gross profit of $34.2 million during the first half of 2024 – surpassing internal forecasts and representing a substantial 47% increase compared to the same period last year. Additionally, revenue for this period reached $144 million compared to $89.3 million in 2023.
Established under the Raspberry Pi Foundation – a UK charity founded in 2008 with an aim to promote computing among young people – Raspberry Pi began selling its products publicly in 2012. The company plans to utilize £178.9 million raised from its IPO to fund engineering projects and intends to release new products before year-end.
The successful listing of Raspberry Pi provided much-needed momentum for the London stock market during a time when listings had been scarce and technology companies sought access to deeper capital markets and higher valuations primarily found in US exchanges. Notably, Cambridge-based chipmaker Arm – one of Raspberry Pi’s shareholders – achieved a valuation of $52 billion after listing on Wall Street in September 2023.
Eben Upton, CEO of Raspberry Pi expressed optimism about the UK stock market despite prevailing skepticism: “Many stories about differences between US and UK markets don’t seem real,” he told Financial Times back in June.
[Video: “Raspberry Pi – The Tiny British Computer Turns 10”]
