If there’s a leader in the smart ring segment, it’s Oura. The Finnish company has been working on these wearables for over a decade. After this long career, it’s beginning to reap the rewards. The company’s good health and its plans are proof of this.
First, the celebrities. The company began to be known by the hands of big names in the film and technology industries. Celebrities such as actor Will Smith and Google co-founder Larry Page started wearing Oura rings, sparking conversations about this type of device.
Rings are starting to take off. The wearables market is still focused on wireless headphones, activity trackers, and especially smartwatches. However, smart rings are an increasingly exciting alternative—in addition to headsets and smart glasses, of course.
Oura is doing well. According to Bloomberg, Oura expects to double its revenue this year to around $500 million. This is already a remarkable number, considering that the reach of these devices is still minimal. Moreover, the company expects “healthy" growth in 2025.
2.5 million rings. Oura CEO Tom Hale explained that the company has sold over 2.5 million smart rings, a remarkable growth rate. In 2022, after an investment round, it sold one million rings.
The market is growing. Oura sells its ring for $300. It comes with a $6 monthly subscription to its advanced features, which Hale says seems to generate high customer loyalty. In recent months, interest in smart rings has grown, partly due to the $399.99 Samsung Galaxy Ring.
Oura is reportedly preparing a promising new model. Sources close to Oura indicate it will allegedly unveil a new smart ring this October. If true, this model, which is a big leap from the previous one from three years ago, will be thinner, have greater autonomy, and track activities more accurately. However, the company hasn’t disclosed details.
No IPO. Hale told Bloomberg that 80% of the company revenue comes from hardware and the rest from software subscriptions. He expects the second to grow significantly. However, this growth hasn’t put the company in a hurry to go public. As Hale said: “We don’t really have a let’s-go-public plan,” a move he considers a “big energy suck.”
Image | Oura
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