Oura, the maker of health-tracking smart rings, has filed to list on the Nasdaq stock exchange in New York, with the paperwork made public on Thursday. The San Francisco-headquartered company, founded in Finland in 2013, has become a must-have among wellbeing enthusiasts, with celebrity fans including Jennifer Aniston, Prince Harry, Kim Kardashian, and Spider-Man actor Tom Holland.
Financial Performance and Revenue Growth
The US filing revealed a thriving high-margin business. Oura brought in $1.21bn in revenue in the nine months to 30 June, up 74% year on year. The company said it recently became profitable, making $60.8m in the same nine-month period, compared with $1.6m in that time last year.
The company is aiming to list on the Nasdaq as soon as later this month, with a valuation expected well above the $11bn it was valued at when it raised $900m last year. The rings sell for $349 (£257) to $499, with subscribers paying $5.99 a month or $69.99 annually for full access to data on their health.
Subscription Business and User Base
Of particular appeal to investors is the highly popular after-sales subscription business. Oura said it has reached a base of 5 million users, doubling year on year, with gross margins of 89% in the nine months to 30 June. Membership revenue came to $240.5m over the nine months, up 121% year over year. Hardware sales accounted for about 80% of revenues.
Subscribers opened the app more than 3.5 times a day on average, the company said. The former Friends star Aniston has publicly said she is addicted to checking her Oura stats. Subscribers are heavily skewed towards women, accounting for 72%, and 42% of the total base are aged 30 to 45, with 31% under 29.
Data Collection and Latest Product
Oura said it has collected almost 42bn hours of biometric physiological data from users across 50 metrics. The latest product, Oura Ring 5, went on sale in May at $399, 40% smaller than its predecessor. It still records heart rate, blood oxygen, temperature, and motion, tracking more than 50 different metrics involved in sleep, activity, readiness, stress, resilience, heart, and women’s health.
The ring allows users to track metrics including heart rate, temperature, and sleep quality. The company’s filing signals a significant step for the wearable tech sector, as Oura prepares to enter the public markets with a strong subscription base and growing profitability.
