It does, but no raw data are sent, most of the aggregation happens on the device. We upload sleep patterns, average values for some sensors (temp/humidity, ambient light) and major events (loud sound or quick change in ambient light). We use those data for historical data analysis on the server side.

The cloud service relays commands to the cover when your phone is not connected to your wifi too (you can warm up your bed while ubering back home on a cold night).