Oura Health Oy, the Finnish health tech company renowned for its fitness-tracking rings, is set to double its annual sales this year, reaching approximately $500 million in revenue. This rapid growth comes as Oura solidifies its presence in the wearable technology space, fueled by a loyal customer base and growing subscription revenue.
Chief Executive Officer Tom Hale shared in a recent interview that the company has sold over 2.5 million rings, gaining a dedicated following. Despite this success, Oura is not currently focused on an initial public offering (IPO). “We’re not quite at that stage,” Hale said, highlighting that an IPO would be a major distraction at this point in the company’s development.
Founded 11 years ago, Oura pioneered the concept of finger-worn activity trackers, positioning itself in a niche market. Priced at $299, Oura’s rings, combined with a $6 per month subscription model, set it apart from broader fitness markets dominated by smartwatches and earbuds. However, competition is heating up. Recently, Samsung entered the space with its $400 Galaxy Ring. Despite this, Hale remains optimistic about Oura’s prospects. The company enjoys higher profit margins than typical hardware companies, and subscriber retention rates are impressive. “Retention is better than any other subscription model I’ve seen,” Hale noted.
Oura’s projected revenue for 2024, expected to hit half a billion dollars, is double the company’s 2023 sales. The CEO attributes much of this growth to loyal users and predicts “healthy” expansion in the future. Hardware currently accounts for 80% of Oura’s revenue, while software subscriptions make up the rest, but Hale expects software to become an increasingly significant contributor over time. In fact, Oura is already two years ahead of its profitability targets.
In addition to its financial success, Oura is preparing to launch a fourth-generation ring this October. According to sources familiar with the matter, the new device will feature a sleeker design, improved battery life, and more precise activity tracking. This will be the most substantial upgrade Oura has made to its product lineup in the past three years, underscoring its commitment to innovation in a competitive landscape.
Hale declined to comment on specific future products, but the company’s focus remains clear. “To double this business, we don’t have to do that much,” he said, emphasizing Oura’s strong foundation and consistent customer engagement.
While the company is on a rapid growth trajectory, Hale indicated that going public is not currently on the agenda. “We don’t really have a ‘let’s-go-public’ plan,” he said, adding that dealing with an IPO could be a “big energy suck.” Although investment banks have approached Oura about the possibility, the company is more focused on scaling operations.
As competition ramps up, Oura is facing legal challenges. Ahead of launching its Galaxy Ring, Samsung filed a lawsuit claiming that its product does not infringe on Oura’s patents. Oura has previously engaged in patent disputes with companies such as Ultrahuman, RingConn, and Circular. Hale downplayed the impact of the Samsung lawsuit, stating, “The facts don’t support the legal claim they’re making.” He also believes Samsung’s entry into the market won’t slow Oura’s momentum, adding, “They’re aiming at where we were two years ago.”
Even as the wearable tech landscape evolves, Oura’s dominance in the smart ring space remains intact. While giants like Apple have considered exploring the market, they are not currently developing a direct competitor to Oura’s ring.
