Health-tracking smart ring maker Oura to list on US stock market
Valuation above $11bn expected for firm whose fans include Prince Harry, Jennifer Aniston and Kim Kardashian
Fans of Oura are accustomed to using its trendy smart rings to fastidiously monitor their health but now investors are preparing to track a new metric: its share price.
The company’s filing to list imminently on the Nasdaq stock exchange in New York was made public on Thursday.
Founded in Finland in 2013 and now headquartered in San Francisco, Oura makes smart rings that have become a must-have item among wellbeing enthusiasts, with celebrity fans and ambassadors including Jennifer Aniston, Prince Harry, Kim Kardashian and the Spider-Man actor Tom Holland.
The ring allows users to track metrics including heart rate, temperature and sleep quality.
The rings sell for $349 to $499 (about £258-£360), with subscribers then paying $5.99 a month or $69.99 a year for full access to data on their health. The US filing showed a thriving, high-margin business, which brought in $1.21bn in revenue in the nine months to 30 June, up 74% year on year.
Oura made its first profit only last year, notching up $1.6m, and followed that with a $60.8m profit in the nine months to the end of June. It 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.
Of particular appeal to investors is the after-sales subscription business, which the company said has reached a base of 5 million users, doubling year on year, and which had 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 and 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 said publicly she is “addicted” to checking her Oura stats.
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 and is 40% smaller than its predecessor . It records heart rate, blood oxygen, temperature and motion, tracking more than 50 metrics involved in sleep, activity, readiness, stress, resilience, heart and women’s health.
Source: The Guardian. Summary reproduced for informational purposes.
Related
BusinessBlack-clad protesters in balaclavas block road at port of Dover in Kent
Port authorities say access roads ‘free flowing’ again after large group forces road closures in both directions Dozens of people dressed in black and wearing balaclavas blocked the road at the port of Dover in Kent, forcing closures in both directions on Satu
BusinessDeal or no deal? How to know if the retail price is right
As the government prepares to crack down on ‘phoney bargains’ we ask experts about what exactly constitutes a genuine price reduction When is a sale not a sale? Online and on the high street, some shops just always seem to be selling at a discount. Whether it’
BusinessJohn Healey warns of tough first budget as Middle East war puts pressure on economy
Chancellor says he wants to ensure country has ‘buffer’ against uncertainty as global bond yields hit 18-year high The chancellor has indicated that the UK will face a tough budget next month due to Trump’s war in the Middle East. In an interview with the Fina
BusinessKardashian curves: M&S launches £28 bodysuit with exaggerated hip padding
The ‘hip boost’ aims to create hourglass silhouette, much like Kim Kardashian’s shapewear brand’s padded shorts For decades shapewear has been used to compress and cinch. But now there is a sub-genre emerging. Rather than shrinking a silhouette, it aims to add
Never miss a headline
The biggest stories in business and finance, delivered to your inbox. Join thousands of readers — unsubscribe any time.