Specialist
Former executive at Ōura Health Oy
Agenda
- Ōura Health's market position vs key wearables players such as Whoop, Apple (NASDAQ: AAPL) and Fitbit (NASDAQ: GOOG)
- Ōura's technology, including key differentiators such as sleep detection technology accuracy and ring format
- Sales growth sustainability, including 3-5-year market outlook and potential valuation vs other players
- Broader business plan, including expansion beyond sleep detection
Questions
1.
Could you outline the TAM of the overall wearables market and the potential TAM for Ōura specifically? How might that trend over the next few years?
2.
What growth rate should we expect for the wearables market YoY over the next 3-5 years?
3.
What should investors factor into the growth assumptions about Ōura? Is there a particular region that may drive the 100% YoY growth you mentioned?
4.
Who would you say are Ōura’s key competitors in the wearables market? Is it the more fitness-specific players such as Whoop, as you mentioned, or companies such as Apple Health and Samsung?
5.
Is anyone else offering this ring-style wearable or is that unique to Ōura?
6.
How realisable is the risk of Apple developing and offering similar features to Ōura that could displace its market position? What might be the timescale for that? You mentioned that although Ōura is perhaps a more along-the-side product to the Apple Watch rather than a direct competitor, Apple and Samsung are huge players with significant marketing powers.
7.
Ōura began with focusing on sleep, but has recently moved into other areas such as fitness. How unique or differentiated is the sleep indication and how might the company expanding into different areas benefit its competitive positioning?
8.
Ōura’s website lists a number of new updates which are set to be released in early 2022, such as blood oxygen measurement. How important are these updates and do you think they will bring an influx of new customers?
9.
You mentioned Ōura’s ring design, which perhaps gives a more accurate heart rate reading by being closer to the arteries than other wristbands in the market. How much more accurate are these results and do you think that increased accuracy is a sufficient differentiating factor in the consumer’s choice of product?
10.
Could you give a geographic breakdown of Ōura’s customer base? Is North America its main market? What might the company’s future uptake trends be across these different regions or markets?
11.
How well-placed do you think Ōura is to capture the growing wearables market in Asia compared with its key competitors?
12.
How sticky is the customer base in the wearables market? Is there much switching between different products?
13.
How important and sustainable are Ōura’s sports partnerships for the company’s future? It partnered with the NBA in 2020 as well as Nascar and others. How aggressive is Ōura when competing for these contracts?
14.
How do you think Ōura could potentially be incorporated into employer health plans, given the overall trend towards preventative healthcare?
15.
Ōura has recently introduced its subscription membership. How does its pricing compare to that of other players, and what are your thoughts on this new membership? Could you outline the company’s new revenue model?
16.
Do you think there will be a drop-off in customers, given Ōura’s shift towards the subscription model? How much conversion could there be towards this new membership?
17.
Do you think that the subscription model is where the future lies for wearables’ revenue models? Players such as Whoop and Fitbit have shifted towards this model to varying extents, as you mentioned. How can players such as Ōura continue to justify these subscriptions and how much innovation or new features is that going to require?
18.
It seems reasonable to think that Ōura may list in 2022, or over the next 1-2 years. What are your expectations for this and the potential valuation? The 2021 Series C funding of USD 100m valued Ōura at USD 800m.
19.
You mentioned that Ōura’s valuation could be similar to that of Whoop, if not higher. Why do you think the company could justify that?
20.
How would an IPO help Ōura to grow further and what might future growth be with more investment? Where would that growth need to come from?
21.
What’s your 3-5-year outlook for wearables, particularly in the medical diagnosis segment? What role could Ōura’s devices play here?
22.
Is there anything else you would like to touch on today?
