Raspberry Pi Holdings Plc · LSE:RPI
Raspberry Pi — H1 2024 Earnings Presentation
29 slides from Raspberry Pi's earnings presentation, Sep 24, 2024
Slide 1: Computing for everybody: Interim Results for the six months to 30 June 2024
Computing for everybody Interim Results for the six months to 30 June 2024 1
Slide 2: Presentation Team and Agenda
Presentation Team and Agenda Dr Eben Upton CBE FREng Chief Executive Officer, Founder Agenda • Former Technical Director and Distinguished Engineer at semiconductor manufacturer Broadcom • Founder of games developer Ideaworks 3D • Introduction • H1 2024 Operational Highlights • Financial Review of H
Slide 3: Raspberry Pi at a glance
Raspberry Pi at a glance Our mission: To put high-performance, low-cost, general-purpose computing platforms in the hands of enthusiasts and engineers all over the world H1'24 1% 11% 18% 70% Europe Americas Asia RoW Headquartered Lifetime sales of Addressing a large and Global sales reach via hybrid
Slide 4: H1 2024 Operational Highlights
H1 2024 Operational Highlights Successful IPO, strong uptake of Raspberry Pi 5, and launch of new AI product Coins with solid fill IPO Market Innovation Commercial progress Successful IPO raising Completed recovery from Debut first-party AI/ML hardware Successful major product £178.9m (c. $225m) in
Slide 5: Financial review of H1 2024
Financial review of H1 2024 Raspberry Pi Holdings plc September 2024 5
Slide 6: H1 2024 Financial Highlights
H1 2024 Financial Highlights Strong H1 2024 growth against a supply-constrained comparative H1 2023 Unit Volume Gross Profit per Unit Gross Profit Gross Margin 3.66m $8.3 $34.2m 23.8% Up 31% up 47% (H1 2023: 2.80m) (H1 2023: $7.7) (H1 2023: $23.2m) (H1 2023: 26.1%) Adjusted EBITDA Adjusted Operating
Slide 7: H1 2024 Revenue Breakdown
H1 2024 Revenue Breakdown Breakdown of Units by Channel Breakdown of Revenue by Category Growth in both direct to reseller and royalties from licensee partner Premier Farnell Higher licensee mix drove higher component sales The share of licensee royalty sales increased from 19% in H1 2023 to 35% in
Slide 8: Adjusted Income Statement
Adjusted Income Statement Adjusted Income Statement Key Items Gross Profit: • Gross profit increased by $11.0m , or 47 per cent, from $23.2m in H1 2023 to $34.2m in H1 2024. Unit sales of boards increased by 31% • ASP up by 28% to $47.2 in H1 2024 due to an increase in the mix of higher price SBCs a
Slide 9: Balance sheet summary
Balance sheet summary Balance Sheet Summary Key Items Intangibles: • Increase largely reflects the increased investment in board and semiconductor development Inventories: • Increased holdings of finished boards as levels of Raspberry Pi 5 boards and compute modules normalised but also because of sl
Slide 10: Cashflow summary
Cashflow summary Cash flow Summary Inventories: • Holdings of finished boards increased by $21.7m • Component inventory increased by $15.9m Capex: • Purchase of intangible assets of $10.1m. This included work on the recently launched RP2350 and further semiconductor development for use in future boa
Slide 11: Three-layered growth strategy with actionable levers to drive long-term growth
Three-layered growth strategy with actionable levers to drive long-term growth Driving Profitable Growth Grow unit sales Grow unit profit Grow profit participation Expanding Longer-term strategic ambition of bringing more component costs in-house Value-add Continuing to Best value/performance Contin
Slide 12: Strategy update
Strategy update Raspberry Pi Holdings plc September 2024 12
Slide 13: Raspberry Pi 5: Successful mass production ramp and launch
Raspberry Pi 5 Successful mass production ramp and launch Key metrics • 1.1m units sold in H1 2024 (1.4m units since launch) • Reached 1m units in under 6 months, comparable to previous releases • 12k units/day peak production capacity at Sony UK Technology Centre Raspberry Pi Holdings plc September
Slide 14: Innovation this year
Innovation this year AI/ML hardware Raspberry Pi Connect Raspberry Pi Pico 2 ▪ Supports developers in experimenting with neural ▪ Software service providing secure easy-to-use ▪ Raspberry Pi Pico products have shipped over 3.5 networks, artificial intelligence and machine learning remote access to R
Slide 15: Go-to-market priorities
Go-to-market priorities Shift Towards Selective Increases In Direct To OEM Expand Reseller Network Sales Resource Senior Level Engagement Supporting key geographies and verticals Raspberry Pi Holdings plc September 2024 15
Slide 16: Direct to OEM Case Study: Heathrow
Direct to OEM Case Study: Heathrow Why Raspberry Pi The Opportunity The Challenge • Flexible, adaptable and • Hundreds of displays • Refresh of 3000+ Flight Information secure being installed across Display Systems (FIDS) across Terminals 3 and 4 Heathrow estate • Can be remotely monitored, managed
Slide 17: People: Raspberry Pi's DNA key to attracting and retaining talent
People Raspberry Pi’s DNA key to attracting and retaining talent Raspberry Pi has built a unique engineering team with deep experience and a broad spread of capabilities Focus on our people Entrepreneurial Place engineers at the Management team are High proportion of senior • Number of employees up
Slide 18: Outlook
Outlook Market Units Profitability We continue to observe higher than Higher unit volumes anticipated for the Having previously expected usual customer and channel inventory second half versus H1, supported by performance to be weighted towards levels, however we are seeing signs several new product
Slide 19: Raspberry Pi is the leader in versatile computing
Raspberry Pi is the leader in versatile computing Award-winning designer of general-purpose computing platforms addressing a $21bn market High-performance, low-cost products provide superior functionality for a diverse range of applications Exceptional brand awareness, loyal community and strong OEM
Slide 20: Appendix
Appendix Raspberry Pi Holdings plc September 2024 20
Slide 21: Share price and major shareholders
Share price and major shareholders Share Price Major Shareholders Landsdowne Partners Raspberry Pi Holdings plc September 2024 21
Slide 22: The Board
The Board Independent Non-Executive Members of the Board of Directors Martin Hellawell Sherry Coutu CBE David Gammon HonFREng Independent Non-Executive Chair Independent Non-Executive Independent Non-Executive Rachel Izzard Chris Mairs CBE Daniel Labbad Independent Non-Executive Independent Non-Exec
Slide 23: Raspberry Pi products address large, fast-growing markets for computing platforms
Raspberry Pi products address large, fast-growing markets for computing platforms Raspberry Pi standard products Customer archetypes Market segments System-on-Modules SBC Enthusiasts, Makers, Hobbyists Enthusiast and Ready-built subsystem that Standalone embedded Use Raspberry Pi’s SBCs to add intel
Slide 24: Single board computers address enthusiast, education, industrial and embedded markets
Single board computers address both enthusiast and education, and industrial and embedded markets Overview Technical functionality Future development Prototyping platform leading • Provides power management, processing, to early volumes • The original Raspberry Pi form factor • New Raspberry Pi plat
Slide 25: Compute modules allow OEMs to scale with Raspberry Pi
Compute modules allow OEMs to scale with Raspberry Pi Overview Technical functionality Future development • The core logic and memory of a • Eliminates dependency on SBC footprint, • Shorten SBC-to-CM delay Raspberry Pi in an alternative, compact connector positioning and onboard form factor for dee
Slide 26: Custom products retain highest-volume OEM customers
Custom products retain highest-volume OEM customers in the Raspberry Pi ecosystem Overview Technical functionality Future development • Select high-volume customers in direct- • Combines Raspberry Pi compute • Leverage direct-to-OEM customer base to to-OEM channel offered customization subsystem wit
Slide 27: Semiconductors: RP2350 commercial development
Semiconductors: RP2350 commercial development Harnessing the power of community Next generation Class leading security Launch at microcontroller key for OEMs DEF CON 2024 • 2-year development • ARM TrustZone for Cortex-M • Released alongside 30+ early adopter developer products • Higher speed • Prot
Slide 28: Education and Enthusiast - a community of innovation
Education and Enthusiast - a community of innovation Raspberry Pi-powered smart Bee Hotel Homemade AI smart home assistant ▪ A total of 11 Raspberry Pis work with cameras and 'weather stations' to collect data ▪ The Raspberry Pi community have built a low-cost, AI-powered Personal Assistant that all
Slide 29: Leading the world in low-power computing and democratising technology
Raspberry Pi's ESG pillars Leading the world in low-power computing and democratising technology The smallest Funding computer Powering start-ups Enabling the resource footprint science education and scale-ups developing world Our computers are more The Foundation focuses on: Committed to helping bu
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