Sacra estimates Oura hit $225M in revenue in 2023, up 53% year-over-year from $147M in 2022. This marks an acceleration from the 37% year-over-year growth seen in 2022.

The company announced in November 2024 that it expects to grow 100% in 2024, to roughly $500M.

Historically, Oura's revenue grew from $30M in 2019 to $107M in 2021, driven by COVID-19 tailwinds and partnerships with major sports leagues.

Oura's subscription model, introduced in 2022, now accounts for 20% of revenue (approximately $45M), contributing to improved gross margins of over 50%. The subscription business boasts 80% gross margins compared to 20-30% for pure hardware sales.

Key growth drivers in 2023 included:

1. Expansion of B2B sales

2. Launch of retail partnerships with Best Buy, Amazon, and Target

3. Continued growth of the subscription offering

Oura's unique positioning as a sleep and health tracking device with a minimalist form factor has allowed it to compete effectively against larger players like Apple Watch and Fitbit. The company's focus on partnerships and expanding its ecosystem through integrations with over 600 companies has further strengthened its market position.

Looking ahead, Oura aims to leverage its recent acquisition of Proxy to expand into digital identity and payments, potentially opening up new revenue streams beyond health tracking.

Oura is valued at over $5B following their 2024 Series D investment from Dexcom of $75 million. Based on their projected $500M of sales in 2024, Oura trades at a 10x revenue multiple.

Earlier funding rounds attracted notable investors including Forerunner Ventures and Stephen Curry's SC30.

Oura was founded in 2013 in Oulu, Finland by Petteri Lahtela, Kari Kivelä, and Markku Koskela. The company initially focused on developing a sleep-tracking smart ring, launching its first product on Kickstarter in 2015. After raising $5.3 million in venture capital in 2016, Oura shipped its second-generation ring in 2018, expanding beyond sleep tracking to measure other vital signs.

Oura found product-market fit by leveraging its ring form factor to capture more accurate biometric data than wrist-worn devices.

The company experienced significant growth, increasing from 150,000 rings sold pre-2020 to over 1 million by April 2022. This acceleration was driven by COVID-19 tailwinds that increased interest in health tech, as well as partnerships with major sports leagues like the NBA and WNBA.

The Oura Ring's key features include:

1. Sleep tracking: Measures sleep stages, duration, and quality

2. Activity monitoring: Tracks daily movement and calorie expenditure

3. Readiness score: Provides insights on recovery and overall health

4. Temperature sensing: Monitors body temperature for potential illness detection

5. Heart rate variability: Measures stress and recovery levels

Oura's product strategy evolved to include a $5.99/month subscription model, introduced in 2021, which now accounts for 20% of revenue with 80% gross margins. This subscription offers users access to more detailed insights and personalized recommendations.

The Oura Ring has demonstrated strong user engagement, with 88% of users still actively checking the app after 12 months, significantly outperforming the 25% 12-month retention rate of typical health apps. This high retention rate, combined with the recurring revenue from subscriptions, positions Oura as a notable player in the wearable health tech market.

Oura is a health tech company that generates revenue through a combination of hardware sales and a subscription-based software model. The core offering is the Oura Ring, a smart ring that tracks various biometric data points, including sleep patterns, activity levels, and physiological markers like heart rate and body temperature.

The company's primary revenue stream comes from selling the Oura Ring, which retails for $300-$400 depending on the model and finish. This upfront hardware purchase is complemented by a $5.99 monthly subscription fee for full access to the Oura app's features and insights.

This dual revenue model allows Oura to capture both immediate income from device sales and recurring revenue from subscriptions, which now account for approximately 20% of total revenue.

Oura's business model leverages the growing consumer interest in health tracking and personalized wellness insights.

The company has positioned itself uniquely in the wearable market by focusing on a ring form factor, which offers advantages in comfort and accuracy for certain measurements compared to wrist-worn devices. This differentiation has allowed Oura to carve out a niche in the competitive wearables space dominated by smartwatches.

Key to Oura's growth strategy is its expansion beyond sleep tracking into comprehensive health monitoring.

The company has formed partnerships with other health tech firms and apps, such as Natural Cycles for fertility tracking and Strava for activity monitoring. These integrations enhance the value proposition of the Oura ecosystem, potentially driving both hardware sales and subscription retention.

Oura's business model also benefits from strong word-of-mouth referrals and high user engagement, with 88% of users still actively using the app after 12 months.

This retention rate, coupled with the subscription model, provides a stable revenue base and opportunities for upselling future hardware iterations or additional services.

As Oura continues to expand its retail presence and explore new markets like enterprise wellness programs, it is well-positioned to capitalize on the growing interest in personal health monitoring and preventative healthcare.

Oura competes in the wearable health tech market, primarily focusing on sleep tracking and overall wellness monitoring. The competitive landscape can be divided into three main categories: smart rings, wrist-worn devices, and specialized sleep trackers.

Oura faces competition from other smart ring startups, though it currently holds a dominant position.

Movano's Evie Ring, set to launch soon, targets women's health with features similar to Oura, including sleep tracking and menstrual cycle monitoring.

The Evie Ring's $269 price point undercuts Oura's $300-$400 range. Amazfit's Helio Ring, slated for a spring 2024 release, focuses on athlete recovery and includes unique features like an EDA sensor for stress tracking.

Oura differentiates itself through its established brand, proven accuracy in sleep tracking, and a more comprehensive health monitoring approach.

Apple Watch and Fitbit dominate the broader wearable market, offering sleep tracking alongside a wide range of other features.

Oura competes by emphasizing its superior battery life (7 days vs. 18 hours for Apple Watch), more comfortable form factor for sleep, and specialized focus on health insights.

Whoop, another wrist-worn device, targets the fitness market with a subscription model similar to Oura's. However, Oura's $5.99 monthly fee is significantly lower than Whoop's $30, potentially attracting more price-sensitive consumers.

Companies like Withings offer dedicated sleep tracking devices that don't require wearing anything.

Oura counters with its ability to provide 24/7 health monitoring beyond just sleep, including activity tracking and readiness scores. The ring form factor also allows Oura to capture more accurate biometric data than non-wearable solutions.

Oura's competitive advantage lies in its balance of form factor, accuracy, and comprehensive health tracking. Its partnerships with over 600 companies, including Strava for fitness and Natural Cycles for fertility tracking, create an ecosystem that enhances its value proposition.

Oura's focus on research validation and potential healthcare applications also positions it uniquely in the market.

Oura has tailwinds from the growing health tech market and increasing consumer interest in personalized wellness. The company has the opportunity to grow and expand into adjacent markets like comprehensive health monitoring, digital identity, and preventative healthcare.

Oura's smart ring technology positions it well to capitalize on the expanding health tech market. By focusing on sleep tracking as an initial wedge, Oura has built a loyal user base with high engagement rates.

The company can leverage this foundation to expand into more comprehensive health monitoring. Integrations with period tracking apps and partnerships with continuous glucose monitoring vendors demonstrate Oura's potential to become a central hub for personal health data.

The company's recent acquisition of Proxy, a digital identity startup, opens up new possibilities for Oura to expand beyond health tracking.

This move could allow Oura to position its ring as a "TouchID for everything," potentially enabling users to open doors, log into computers, start cars, and make payments with a wave of their hand. This expansion into digital identity and security could significantly broaden Oura's addressable market beyond health-conscious consumers.

Oura's growing dataset of user health information presents a significant opportunity in the preventative healthcare space. The company's partnerships with research institutions and its ability to detect early signs of illness (as demonstrated during the COVID-19 pandemic) showcase the potential for Oura to play a crucial role in population health management.

By leveraging its biometric data and expanding its AI capabilities, Oura could develop more sophisticated health prediction models. This could position the company as a valuable partner for healthcare providers and insurers, potentially tapping into the $4 trillion U.S. healthcare market.

The recent population-level rollout in a Japanese town of 5,000 people serves as a proof of concept for Oura's potential in large-scale health monitoring and intervention programs.

As Oura continues to expand its ecosystem through partnerships and integrations (now over 600), it strengthens its position as a comprehensive health platform. This growth strategy not only increases the value proposition for individual users but also makes Oura an increasingly attractive partner for enterprises and healthcare systems looking for holistic health monitoring solutions.

1. Subscription model resistance: Oura's shift to a subscription-based model for full app functionality could backfire. While it has improved gross margins, there's a risk of user backlash and churn, especially as competitors offer similar features without subscriptions. This could slow growth and reduce the lifetime value of customers, potentially forcing Oura to revert to a one-time purchase model and impacting its recurring revenue stream.

2. Overreliance on sleep tracking: Although Oura has expanded into other health metrics, its core value proposition remains centered on sleep tracking. As smartwatches and other wearables improve their sleep tracking capabilities, Oura may struggle to maintain its competitive edge. To mitigate this, Oura needs to rapidly develop and market unique, high-value features beyond sleep to justify its premium pricing and form factor. 3. Limited hardware iteration: Unlike smartwatch makers who release new models annually, Oura's hardware updates are infrequent. This slower innovation cycle could lead to market share loss as competitors introduce more advanced sensors and features more rapidly. Oura must balance the longevity of its devices with the need for regular hardware improvements to stay competitive in the fast-evolving wearables market.