Strategy

Sleep Cycle’s driving force is to improve global health by helping people sleep better. Our product – with more than two million users across 150 countries – is a tremendous vehicle for this mission. We’ve exhibited consistent growth over time, but we’re still convinced that there’s more untapped potential. Against this backdrop, we have crafted a comprehensive new strategy with a singular focus: increased profitable growth.

Structural trends and profitability

Several structural trends are driving growth in the sleep-tracking applications market: an intensified consumer emphasis on health, the acknowledgement of sleep’s role in overall wellness, consumer empowerment within the health space, and the rise of recurring revenue models through subscriptions. Sleep Cycle’s innovative AI audio analysis and powerful platform position us perfectly at the intersection of these movements by satisfying the bolder health and lifestyle aspirations of consumers worldwide.

Gearing up for growth

Our strategy reveals a bold target: doubling revenue in the medium term, while aspiring to an annual EBIT margin in the neighborhood of 25 percent. With a robust core-business foundation and a team replete with expertise, we’re confident that our ambitious goals are attainable.

Key strategic pillars

User acquisition

With firm roots in organic growth, Sleep Cycle benefits from peer recommendations and natural market interest. We aim to enhance this organic viral growth by increasing visibility and brand presence in earned media outlets. Pushing the envelope, we focus on amplifying PR activities, building the brand, revitalizing partnerships, refining our pricing tactics, and bolstering UX alongside product innovation.

User engagement

Given our subscription model, retention rates are paramount. Recognizing that engaged users stick around, we’re steering towards upping user value through tech and product enhancement – effectively a magnet for user engagement. Our tech evolution and creative feature set aim to polish data precision, heightening user reliance. We’re introducing elements such as personalized dashboards and strategic notifications to aid users in forming health-promoting routines ensuring consistently better sleep.

Data and platform optimization

Sleep Cycle is not merely a personal health app; it’s a repository for vast volumes of anonymized, collective sleep health data. This positions us to iterate ceaselessly, enhancing the user experience precisely and substantially. Our feature Cough Radar exemplifies our capability to transfer data into user value and accessing new market segments. Our strategy looks to further leverage such data via new monetization avenues and SDK opportunities, ensuring continued growth and innovation.