Oura, the manufacturer of smart rings, is preparing to become a publicly traded company.
In a recent filing with the Securities and Exchange Commission, Oura reported a significant increase in revenue over the past year. The figures show a rise from $697 million in the nine-month period ending June 30 of the previous year to $1.2 billion during the same timeframe this year.
The company previously indicated expectations of generating $500 million in revenue for 2024, approximately $1 billion in 2025, and nearly $2 billion in revenue this year.
Oura has sold 3.6 million rings in the last year and currently has around 5 million subscribers to its health services, which provide extensive health metrics. The filing reveals an impressive 85% average retention rate for subscriptions over 12 months, suggesting that most users who register continue with the service.
The rings, priced between $350 and $400, serve primarily as fitness trackers that monitor a variety of biometrics, including metabolism, heart rate, stress levels, and sleep patterns. Together with an app, Oura promotes its product as an “always-on health intelligence platform.”
Reports surfaced last month indicating that Oura aims to raise $3 billion in its public offering. Established in Finland in 2013, the company made a confidential IPO filing in May. In earlier reports, it was mentioned that Oura is targeting a valuation of $16 billion, an increase from approximately $11 billion in October of the previous year.
In the SEC filing, Oura expressed optimism about expanding its audience in the coming years. It stated, “We believe our opportunity goes beyond conventional wearables focused on fitness tracking. Our platform has the potential to reach significantly larger populations as we broaden accessibility and enhance clinical evidence while integrating further with health plans, employers, and healthcare providers.”
Oura also highlighted that its extensive data collection is enhancing new AI capabilities. “We have built one of the largest and most comprehensive biometric datasets in consumer health, analyzing over 50 health and wellness metrics, amounting to nearly 42 billion hours of physiological data,” the statement noted. “This dataset underpins our AI and machine learning models, which unravel complex physiological patterns and improve in reliability, personalization, and predictive accuracy as user data accumulates.”
Oura has faced challenges recently, including a proposed class action lawsuit claiming the company misled users regarding the accuracy of its sleep tracking features. The lawsuit asserts that the rings cannot accurately detect the necessary physiological signals to determine sleep stages, instead relying on AI-based estimates deemed unreliable. This follows numerous user complaints about misleading sleep quality ratings.
The company has countered the claims, stating that it will “defend against” the accusations in a “suitable legal venue.”
