Oura CEO highlights new hardware features and international expansion plans

• Tom Hale, CEO of Oura, discussed the smart ring product market and the influence of Samsung's entry with CNBC.
• The company is expanding its offering and is focusing on nutrition functions as its next "pillar" of focus, according to Hale.
• Oura aims to expand globally, particularly in Western Europe, as Hale stated.

Oura's CEO, Tom Hale, isn't concerned about Samsung's entry into the smart rings market. Instead, he sees it as a positive development that could boost business.

Hale stated in an interview with CNBC that a major tech company declaring a category as significant and promising it to be big is likely helpful.

"Our business has not been affected by their announcement, and in fact, it has become stronger."

At the Web Summit conference in Lisbon, Hale disclosed Oura's plans for expanding user insights, his thoughts on new devices, and the company's international expansion intentions during a comprehensive interview with CNBC.

The Oura Ring 4 is Oura's flagship product, a smart ring equipped with sensors that track health metrics. Users of the Oura app can gain insights into their sleep quality and readiness for the day ahead.

Since its inception in Finland in 2013, Oura has been recognized as a pioneer in the smart ring industry by analysts. The company has sold over 2.5 million rings since launching its first product. CCS Insight predicts that Oura will hold a 49% market share in smart rings by the end of the year.

The smart ring market is gaining traction, with Samsung's Galaxy Ring launch this year helping to establish the device category and attract a wider audience.

Oura aims to be recognized as both a health and science company, with its product being classified as clinical grade. The company is currently seeking approval from the U.S. Food and Drug Administration (FDA) for its ring to be used for diagnostics, although Hale did not disclose any additional information.

Oura's emphasis on health and science distinguishes it from other competitors, as he stated.

If you consider yourself a healthcare company, your approach to data privacy will differ significantly from that of a tech company. Instead of viewing data as a valuable resource to be exploited for network effects, healthcare companies treat it as a sacred asset that must be protected.

Oura generates revenue through both the sale of hardware and a $5.99 monthly subscription service, which provides users with insights from their ring. The company claims to have almost 2 million subscribers.

Hale stated that our business model is working and our subscribers are continuing to pay, which makes us look more like a software company than a hardware company.

Oura eyes nutrition as next 'pillar'

The Oura ring collects data to offer users insights into their sleep, activity, and readiness levels.

Oura is currently testing nutrition, allowing users to log their meals by taking a picture and inputting the data into the app. Additionally, Oura recently acquired Veri, a metabolic health startup that uses continuous glucose monitors to provide insight into blood sugar levels. This, combined with Oura's food tracking feature, can help users understand how certain meals affect their glucose levels.

Glucose monitors that require insertion into the skin are common today. However, some individuals believe that a non-invasive glucose monitor on wearable devices could be revolutionary. Nonetheless, Hale cautions that achieving this goal is challenging.

According to Hale, the concept of a wearable device that can accurately predict its destination has been a long-standing goal, similar to the elusive Holy Grail, which may never be found due to the complexity of the problem.

Technology will always continue to advance and improve its capabilities.

New hardware and AI

Hale envisions Oura expanding its product line beyond rings in the future, although he did not provide further details.

He assured that we will definitely witness other Oura-branded products apart from the ring.

He stated that the company aims to collaborate with other devices, regardless of whether they are Oura's own hardware, in addition to what he said.

Oura, like many hardware companies such as Samsung, is exploring ways to leverage the advancements in artificial intelligence to offer users more personalized insights. Smartphone manufacturers have discussed the concept of "AI agents," which they envision as assistants capable of anticipating a user's needs.

Oura is also testing an AI product called Oura Advisor in a similar manner.

Hale stated, "Consider it as a personal doctor who has all your data at their fingertips."

International push

Hale's attendance at the Web Summit in Lisbon highlights his efforts to increase Oura's brand recognition globally, particularly in regions beyond the US, as the popularity of smart rings grows.

Hale stated that the category being a topic of learning, the distinct advantages of maturity, are in our favor. We are expanding globally.

He expressed great enthusiasm regarding exploring Western Europe, including the U.K., Germany, France, and Italy. In terms of future plans, Hale stated that an initial public offering for the company is not being considered at this time, and that operating as a private company provides more "flexibility."

"As a private company, we have the freedom to operate with a lot of license, as we are accountable to our investors and shareholders but they are willing to let us make decisions. If we decide to turn unprofitable to invest in healthcare software, it will be fine as they would be happy for that."