UK's Raspberry Pi sees demand building for its low-cost computers

By Paul Sandle and Shashwat Awasthi

LONDON (Reuters) -British single-board computer maker Raspberry Pi forecast a steady build-up in demand this year after it narrowly beat 2024 earnings expectations, helped by sales of its flagship Raspberry Pi5 as well as its semiconductor units.

The group, which went public in June last year, produces low-cost SBCs, accessories, and microcontrollers. Its SBCs are used in smart-home systems, robotics and automated systems, and video game emulators.

Chief Executive Eben Upton said 2024 was marked by the IPO and a refresh of its platforms, led by ramping up production of Raspberry Pi5 and its derivatives.

"There was always that risk that people think you're going to turn evil once you're listed," he said. "But getting interesting new products out at our price points was useful for that."

A 16GB Raspberry Pi5 retails for around 115 pounds ($148) in Britain. The company sold 1.9 million Raspberry Pi5s in the year.

Shares in the group, which were priced at 280 pence in the IPO, were up 7% to 500 pence on Wednesday morning.

Upton said the firm's tech enabled manufacturers to put powerful computing power into their products at low cost, citing the example of a company using its devices to monitor the delivery and curing of concrete to building sites.

Any U.S. tariffs would make its products more expensive for U.S. customers, he said, but there was not really any competitor in a position to exploit the change.

"If an American OEM (original equipment manufacturer) were to choose to make rather than buy, then many of the components that they would use to make would also be subject to tariffs," he said. It sold 29% of its units in the Americas last year.

Raspberry Pi reported core earnings of $37.2 million, compared with a company-compiled consensus of $36.6 million, but 15% lower than 2023 after inventory issues in the second and third quarters.

($1 = 0.7737 pounds)

(Reporting by Shashwat Awasthi in Bengaluru. Editing by Rashmi Aich and Mark Potter)