Oura plans international expansion, tests nutrition and AI functions

LISBON – Samsung's push into smart rings doesn't concern the pinnacle of the product category's pioneer, Oura – quite, Tom Hale says he sees an uptick in business.

“I'm sure a big tech company will make an announcement and say, 'Hey, this is a category that matters. It's going to be something really big.' I think it’s probably helpful,” Hale said in an interview with CNBC this week.

“As far as the impact on our business, it has had no impact. If anything, our business has become stronger since their announcement.”

In an in-depth interview with CNBC on the Web Summit conference in Lisbon, Hale discussed Oura's plans for brand new insights it desires to offer users, how he thinks about recent devices, and the corporate's intentions for international expansion.

Oura's flagship product is the Oura Ring 4, a tool generally known as a Smart Ring. It's filled with sensors that may track some health metrics, allowing Oura app users to learn more in regards to the quality of their sleep or how ready they’re for the day ahead.

Founded in Finland in 2013, the corporate is described by analysts as a pioneer within the smart ring sector. Oura said it has sold greater than 2.5 million of its rings since launching its first product. CCS Insight predicts Oura will end the 12 months with a 49% market share in smart rings.

Competition is starting to emerge on this area. The world's largest smartphone maker Samsung took its first step into smart rings this 12 months with the Galaxy Ring, which some analysts say has put the device category on the map and introduced it to a wider audience.

Hale goals to position Oura as a “healthcare company and science company from the ground up,” with the goal of its product being “clinically viable.” Oura is applying to the U.S. Food and Drug Administration (FDA) for approval to make use of its ring for diagnostics, although Hale declined to offer too many further details.

He said Oura stands out from the competition due to its give attention to health and science.

“If you actually think about it [of] For you as a healthcare company, things are very different in many ways and you may have different attitudes towards data protection. …So instead of being like a technology company where data is a kind of oil that is extracted and then used to achieve network effects, we are really a healthcare company where your data is untouchable,” Hale said.

Oura's business model is based on selling the hardware as well as a $5.99 monthly subscription service that allows users to receive the insights from their ring. Oura claims to have almost 2 million subscribers.

“We are more like a software company than a hardware company. And I think that's because of the business model and the fact that it works. Our subscribers continue to pay,” Hale said.

Oura uses the data collected by the ring to provide its users with insights focused on a person's sleep levels, activity, and readiness for the day.

Hale said the company is now testing the diet, with users able to take a photo of their meal and log it into the Oura app. Also in the nutrition space, he highlighted Oura's recent acquisition of Veri, a metabolic health startup that can collect data from continuous glucose monitors – small devices inserted into a person's arm – to provide insight into a person's blood sugar levels. Hale says this, combined with Oura's food tracking feature, could tell a user how certain meals affect their glucose levels.

Many glucose monitors today are invasive and have to be inserted into the skin. Some observers see a non-invasive glucose monitor on wearable devices as something that may very well be transformative – but Hale warns that goal will likely be difficult to attain.

“The idea that a wearable [device] “I think that the question that they're going to put there was definitely a Holy Grail, and just like the Holy Grail, they may never find it because it's a very difficult problem to solve with any precision,” Hale said.

“Never say never. “Certainly technology continues to advance and all capabilities continue to develop,” he added.

While Oura currently only sells rings, Hale expects the company to develop new products in the future. He declined to elaborate.

“I think we will undoubtedly see more Oura-branded products outside of the ring,” he promised.

He also said the company hopes to work with other devices, even if they are not Oura's own hardware.

How many hardware companies, such as Apple and Samsung, Oura is looking for ways to leverage the advancing capabilities of artificial intelligence to provide users with more personalized insights. Smartphone makers have talked about so-called “AI agents,” which they see as assistants that can predict what a user wants.

Similarly, Oura is testing an AI product called Oura Advisor.

“Think of it as the doctor in your pocket who knows all the data about you,” Hale said.

Healthy'S Attending the Web Summit in Lisbon underscores its commitment to increasing Oura's brand awareness in markets outside the U.S., especially as more people learn about smart rings.

“I think the fact that the category is something that people are learning about, the unique benefits of that maturity, works in our favor. We’re expanding internationally,” Hale said.

He said he was particularly “excited” about the push into Western Europe, including countries such as Britain, Germany, France and Italy. Looking even further into the future, Hale said that an IPO for the company is currently out of the question, adding that operating as a private company gives Oura more “freedom.”

“I really enjoy the freedom we have as a private company. We are accountable to our investors and shareholders, but they are willing to let us operate with a lot of license,” he said. “And if we decided to become unprofitable because we wanted to invest in owning a category of healthcare software, that would be fine. They would be happy about that.”