Raspberry Pi, known for its affordable microcomputers, has released its inaugural financial update since its recent initial public offering (IPO) on the London Stock Exchange, showing impressive profits that exceeded forecasts.

The company, which generated £178.9 million in its IPO in June and joined the FTSE 250 earlier this week, reported a 61% increase in year-on-year sales, totaling $144 million for the six months ending June 30. Pre-tax profits saw a slight rise to £10.8 million, up from £10.7 million.

Shares of Raspberry Pi surged by over 10% at one point on Tuesday, ultimately closing up by 23p, or 6.6%, at 371p.

During the first half of the year, the company sold 1.1 million units of its latest model, the Raspberry Pi 5, which was released in October 2023.

The firm’s profitability in the initial half was reported as “ahead of internal expectations,” with projections for the full year remaining steady.

Raspberry Pi faced significant challenges due to supply chain disruptions stemming from the pandemic, particularly affecting semiconductor supplies. However, the company indicated that recovery is largely on track, despite ongoing disruptions.

According to Eben Upton, CEO, “When you’re in a serious shortage of stuff that people really need, people exaggerate the demand. You see the demand being both multiplied and coming to you from multiple places. It takes you a long time, even after silicon supplies come back, to defeat that piled-up backlog.”

Analysts at Jefferies noted that while the inventory correction and an expected increase in lower-value board sales might point towards a weaker second half, the overall full-year expectations remain unchanged.

They added, “However, with the inventory correction projected to conclude by the fourth quarter and favorable memory pricing, the revenue and earnings outlook for the full year 2025 appears positive.”

Initially established as the Raspberry Pi Foundation in 2008 to encourage more young individuals to pursue computer science at Cambridge University, Raspberry Pi was founded by Upton and his wife, Liz, in 2012. The company supports the foundation, which owns 47% of the business since its IPO.

Sales rose by 31% compared to a supply-constrained first half of 2023, driven significantly by the Raspberry Pi 5 sales priced at around £78 for the top model.

The company anticipates further sales growth in the second half, bolstered by new product launches, including its first AI-focused hardware collaboration with Hailo AI in June.

Additionally, the company launched Raspberry Pi Connect in May, its first cloud product which garnered 50,000 users during its testing phase. This platform offers secure remote access to Raspberry Pi devices at a cost of $6 per device annually.

Upton remarked, “Software for us has always been a cost centre, not a profit centre. This is the first time we’ve built a software product which is actually a profit in itself.”

“We went out and did a survey of other offerings in the space. We are bringing a Raspberry Pi ethos, a value ethos, to that space.”