According to CEO Tom Hale, Bloomberg reports that Finland’s Oura Health Oy, known for its fitness tracking rings, plans to double annual sales to $500 million this year and forecasts “healthy” growth through 2025.
In an interview, Hale noted that Oura has built a loyal customer base and sold over 2.5 million rings. Despite this success, he added that the company is not yet preparing for an initial public offering (IPO).
Founded 11 years ago, Oura has pioneered the creation of wearable activity trackers and generates revenue from the sale of its rings at $299 each, along with a $6 monthly subscription. Although the intelligent ring market is more niche than smartwatches or headphones, it is becoming increasingly competitive – Samsung recently launched the $400 Galaxy Ring.
Nevertheless, Hale remains optimistic about Oura’s future. He emphasized that the company’s profits resemble those of a software firm rather than a hardware manufacturer and that solid customer retention drives growth. He also confirmed that Oura is on track to reach about $500 million in revenue in 2024, double the amount in 2023.
About 80% of Oura’s revenue comes from hardware sales, with the remaining 20% from software subscriptions. Hale expects the software share to grow over time and noted that Oura is two years ahead of its profitability goals.