Raspberry Pi's pre-tax profit plummeted by 57 per cent over 2024 to a mere $16.3m (£12.6m), as the company grappled with inventory correction issues.
The FTSE 250 tech firm disclosed in its annual results that its adjusted operating profit had slipped by 15 per cent to $37.2m (£28.8m), as reported by .
Analysts had anticipated this downturn in the company's profit, predicting that the adjusted operating profit would fall within the range of $36m and $38m.
The company attributed the steep drop in profit to the expansion of its resource and development expenditures and the heightened administrative costs associated with being a publicly traded entity.
However, Raspberry Pi also reported a two per cent decrease in revenue from the previous year, totalling $259.5m (£201m), which was at the lower end of analyst predictions.
"Since its IPO in June 2024, the shares of Raspberry Pi have been volatile, first hovering above the listing price of 280p, before shooting up to above 700p in December," observed Deutsche Bank analyst Robert Sanders.
Raspberry Pi's mixed performance
Initially, Raspberry Pi's IPO was celebrated as an indication that the London Stock Exchange could be on track for a listing rebound after several challenging years.
The stock initially struggled, but in December its fortunes appeared to turn around. The tech company's shares doubled as US hedge funds' interest drove demand for the FTSE 250 company.
However, since the start of the year, the stock has declined by 21 per cent.
Sanders further commented on the company's current standing: "At the current price, the shares sit on a premium valuation (38 times 2026 earnings), pointing to healthy appetite to believe in the potential of a huge opportunity ahead in edge computing, especially in industrial and embedded markets, which are 72 per cent of Raspberry Pi volumes."
The company has accelerated its product launches since going public, with 22 new products introduced in 2024 compared to just six the previous year, indicating an effort to broaden its product range.
This trend is also reflected in the firm's staffing, as the proportion of engineers among total employees increased from 44 per cent to 48 per cent last year.
Raspberry Pi's CEO, Eben Upton, acknowledged the impact of the IPO, stating: "The IPO in June 2024 has undoubtedly extended awareness of Raspberry Pi's value proposition from the engineering department to the C-suite at major original equipment manufacturers."
Upton concluded with the company's future aspirations: "As our platforms and solutions evolve, we aspire to become the compute partner of choice for these companies."
