Oura Health Oy, a Finnish company known for its fitness tracking rings, plans to double its annual sales to $500 million this year and forecasts “healthy” growth through 2025, according to CEO Tom Hale, Bloomberg reports.

In the interview, Hale noted that Oura has built a loyal customer base, selling more than 2.5 million rings to date. Despite this success, the company is not yet preparing for an initial public offering (IPO), he added.

Founded 11 years ago, Oura has pioneered the creation of wrist-worn activity trackers and generates revenue from the sale of its rings at $299 each, along with a $6 monthly subscription. While the smart ring market is more niche than smartwatches or headphones, it is becoming increasingly competitive – Samsung recently launched the $400 Galaxy Ring.

Nevertheless, Hale remains optimistic about Oura’s future. He emphasized that the company’s profits resemble those of a software firm rather than a hardware manufacturer, and that strong customer retention is driving growth. He also confirmed that Oura plans to reach about $500 million in revenue in 2024, which is double the amount in 2023.

Although Oura declined to comment on future products, sources familiar with the company’s plans said that a fourth-generation ring is expected to launch in October. This new model will have a slimmer design, longer battery life, and more accurate activity tracking, which will be the most significant update to Oura’s products in the last three years.

Currently, about 80% of Oura’s revenue comes from hardware sales, with the remaining 20% coming from software subscriptions. Hale expects the software share to grow over time, and noted that Oura is two years ahead of its profitability goals.

Despite this momentum, there are no plans for an IPO in the near future. “We have no plan to go public,” Hale said, calling an IPO “a big energy suck.”

In anticipation of its entry into the smart ring market, Samsung filed a preemptive lawsuit against Oura, claiming that the Galaxy Ring does not infringe on five of Oura’s patents. Samsung’s lawsuit claimed that Oura has a history of suing potential competitors for “features common to virtually all smart rings,” citing past lawsuits against Ultrahuman, RingConn, and Circular.

Hale rejected Samsung’s claims, saying: “the facts don’t support the legal claim they’re making,” and expressed confidence that Samsung’s entry into the market will not hinder Oura’s growth. “They were aiming at where we were two years ago,” he added.