Pattern Group (NASDAQ:PTRN) Issues Earnings Results

Pattern Group (NASDAQ:PTRN) released its quarterly earnings results on Wednesday. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.02, FiscalAI reports. Pattern Group had a negative return on equity of 318.79% and a negative net margin of 4.57%. The firm had revenue of $885.85 million for the quarter.

Here are the key takeaways from Pattern Group’s conference call:

• Positive Sentiment: Pattern reported record Q3 revenue of $886 million, up 38% year over year, and adjusted EBITDA of $57 million, up 30% (40% on the CEO’s stated comparison). The company raised its full-year outlook to approximately $3.5 billion in revenue and $220 million in adjusted EBITDA.
• Positive Sentiment: Brand expansion remained strong: net revenue retention was 127%, up from 122% a year earlier, and Pattern signed a record number of large brand partnerships for a quarter. Management said its full-year NRR is expected to end around 124%–125%, while noting its long-term target is 115%.
• Positive Sentiment: Growth is broadening beyond Amazon and the U.S.: non-Amazon revenue grew 86% and reached 10% of total revenue, while international revenue rose 56%. Fast logistics and other monetization revenue increased 136% year over year to $18 million.
• Positive Sentiment: Pattern is investing heavily in technology and AI, with R&D expense excluding stock-based compensation and related taxes up 105% year over year, while adjusted EBITDA margin edged up to 6.5%. Trailing 12-month free cash flow rose 50% to $106 million; the company also repurchased $18 million of shares in Q3.
• Negative Sentiment: Q4 adjusted EBITDA guidance of $54 million–$55 million implies 27%–29% year-over-year growth, below the forecast 34%–36% revenue growth, suggesting profitability may grow more slowly than sales in the quarter.

Pattern Group Stock Performance

NASDAQ:PTRN traded up $0.76 during trading hours on Wednesday, reaching $17.68. The company’s stock had a trading volume of 1,643,520 shares, compared to its average volume of 1,458,103. The company has a market capitalization of $2.75 billion, a P/E ratio of -10.28 and a beta of 1.29. Pattern Group has a 12 month low of $8.92 and a 12 month high of $29.80. The stock has a 50 day moving average price of $18.40 and a two-hundred day moving average price of $17.56.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sterling Capital Management LLC grew its holdings in shares of Pattern Group by 1,400.9% during the third quarter. Sterling Capital Management LLC now owns 1,711 shares of the company’s stock valued at $29,000 after buying an additional 1,597 shares during the last quarter. State of Wyoming purchased a new position in shares of Pattern Group during the 3rd quarter valued at approximately $106,000. State of Alaska Department of Revenue purchased a new position in shares of Pattern Group in the third quarter valued at approximately $148,000. Arizona State Retirement System acquired a new stake in shares of Pattern Group in the second quarter valued at approximately $226,000. Finally, Corient Private Wealth LP acquired a new stake in Pattern Group during the second quarter worth $261,000.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on PTRN shares. BMO Capital Markets reissued an “outperform” rating and issued a $28.00 price objective on shares of Pattern Group in a report on Thursday, August 6th. Weiss Ratings raised shares of Pattern Group from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. The Goldman Sachs Group reiterated a “buy” rating and set a $31.00 target price on shares of Pattern Group in a research report on Thursday, August 6th. KeyCorp decreased their target price on Pattern Group from $30.00 to $25.00 and set an “overweight” rating on the stock in a research report on Monday. Finally, Evercore restated an “outperform” rating and set a $29.00 target price on shares of Pattern Group in a research report on Thursday, August 6th. Eight investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $26.44.

About Pattern Group

Pattern Group Inc (NASDAQ: PTRN) is an e-commerce technology and services company that helps brands grow and manage their online businesses. Its platform combines software, data, and operational services to support product distribution and sales across major digital marketplaces, retailer websites, and other e-commerce channels.

The company’s services include marketplace management, digital advertising, product content and catalog optimization, pricing and assortment strategy, fulfillment coordination, and analytics.