Raspberry Pi (LSE: RPI) shares enjoyed a solid uptick today, climbing over 6% as the tech firm unveiled a first-half profit that exceeded expectations in its inaugural earnings report since its June debut on the London Stock Exchange. Currently, the shares sit 33% above their initial public offering price of 280p, placing the firm’s valuation at approximately £717.5 million.
For the six months ending June 30, the computer outfit reported a modest 0.9% rise in pretax profit to $10.8 million, up from $10.7 million last year. However, revenue surged 61% to $144.0 million, a substantial increase from $89.3 million.
While gross profit climbed 47% to $34.2 million, the gross margin dipped by 2.3 percentage points to 23.8% from 26.1%. Basic earnings per share fell 11% to 3.92 US cents, down from 4.39 cents.
No dividends were declared.
Raspberry Pi described its first-half performance as “stronger than expected,” noting that despite slightly lower-than-predicted volumes, sales leaned toward “higher margin variants.” The firm previously anticipated stronger results in the latter half of the year but has adjusted its expectations based on first-half performance.
Looking ahead, Raspberry Pi expects higher unit volumes in the second half, bolstered by new product launches, although an anticipated product mix could lead to “lower unit economics.” Despite inventory levels being elevated, the company anticipates a return to normal levels toward year-end.
“Overall, we are encouraged by the resilient performance of the business given the market conditions widely reported by our peers. Our expectations for the full year remain unchanged,” Raspberry Pi stated.
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