This has to be a company that achieves scale, grows its offerings, and brings new ideas in the area of health,” Oura CEO Tom Hale said during a conversation at Lisbon’s Web Summit, where he spoke about the strategy for growth in a company that, despite increasing competition in the wearable health tech space, seems to stand out.
The flagship Oura product is the Oura Ring 4. This is a ring from which a user learns and gains information about how good his sleep was, what his activity is, and how ready he is for the day. Since the Finnish company launched its product in 2013, it has sold more than 2.5 million rings and will supposedly end up holding 49% of the market share in smart ring activities by the close of 2024. Hale, however sees this as a boost in competition because some of the major players, such as Samsung, have also jumped into the action. He believes that Samsung’s announcement legitimizes the category and, in fact, has helped strengthen Oura’s business.
“We are seeing a lift in business since their announcement,” Hale noted, adding that increasing the visibility of smart rings benefits all players in the space.
Oura’s business model packages the hardware sale with a monthly subscription service in the amount of $5.99, giving the user additional insights from the Oura app. He noted that this company’s approach is more on the side of the software than the hardware, because it is through the recurring subscription model that accounts have been driving superb customer retention.
Looking ahead, Oura is exploring new areas of focus, including nutrition. The company has even been testing a feature that allows users to log their meals by taking pictures through the Oura app. More recently, Oura bought Veri, a metabolic health startup that tracks blood sugar levels using continuous glucose monitors. Users will be able to use such an integration so much better to understand how certain foods impact glucose levels.
While Oura is committed to enhancing its software, the company is also eyeing hardware innovation. Although it currently only offers smart rings, Hale hinted that new products are on the horizon, though he declined to specify details. The company is also exploring collaborations with other devices and integrating artificial intelligence to offer more personalized insights through a feature called Oura Advisor.
Oura’s international expansion is another key priority. Hale said she’s really looking forward to growing the company’s presence in Western Europe and engaging markets such as the United Kingdom, Germany, France, and Italy. While on that issue, Hale underscored that “We’re not considering an IPO at this time,” citing the fact that being a private company has given it greater operational flexibility and longer-term strategic freedom. As Oura continues to evolve, Hale sees the company’s commitment to health and science as its defining differentiator in the increasingly competitive wearables market.
