Key facts
- Oura has filed to list on the Nasdaq stock exchange.
- The company generated $1.21bn in revenue in the nine months to June.
- Oura reported a profit of $60.8m for the same nine-month period.
- The company's subscription base has grown to 5 million users.
- Oura rings sell for $349 to $499, with monthly subscriptions costing $5.99.
Oura, the maker of popular health-tracking smart rings, has filed for an initial public offering on the Nasdaq stock exchange in New York. The company, founded in Finland in 2013 and now headquartered in San Francisco, has seen its rings become a sought-after item among wellness enthusiasts, with celebrity endorsements from figures like Jennifer Aniston and Prince Harry.
The Oura Ring, which sells for between $349 and $499, monitors metrics such as heart rate, temperature, and sleep quality. Users pay a monthly or annual subscription fee for full data access. The company's filing revealed a strong financial performance, with revenues reaching $1.21bn in the nine months leading up to June 30, a 74% increase year-on-year. Oura also reported becoming profitable during this period, with earnings of $60.8m, a significant jump from $1.6m in the same period last year.
Investors are particularly drawn to Oura's high-margin subscription business, which has doubled its user base year-on-year to 5 million. Membership revenue grew 121% to $240.5m over the nine months, contributing to gross margins of 89% for this segment. Hardware sales constitute approximately 80% of total revenues. The company is aiming for a listing as soon as this month, with expectations of a valuation significantly exceeding its previous $11bn valuation from a $900m funding round last year. Subscribers are predominantly women (72%) and fall within the 30-45 age bracket (42%), with 31% under 29. Oura has amassed nearly 42 billion hours of biometric data from users across 50 metrics.