Pattern Group (PTRN) investor relations material

Company overview and technology

• Operates a tech platform enabling brands to accelerate sales across 61 digital marketplaces, focusing on optimizing revenue through data science and machine learning, with 29 patents issued or pending.

• Uses a stoplight system to assess data sufficiency for applying AI and machine learning, optimizing traffic, conversion, and pricing.

• Executes 15–16 million bid changes daily on keywords, leveraging high-frequency trading-like strategies for e-commerce.

• Employs agentic workflows and transformer models to adapt to evolving marketplace algorithms and consumer behaviors.

• Real-world optimizations include keyword labeling (e.g., adding “gluten-free” to listings) to capture more sales based on data-driven insights.

Industry trends and agentic commerce

• Agentic shopping, where AI assistants execute purchases, is expected to account for 10–30% of e-commerce by 2030, with protocols like ACP (OpenAI/Stripe) and UCP (Google) emerging.

• Current adoption is low, but as LLM-driven shopping becomes more seamless, consumer behavior is expected to shift rapidly.

• Pattern leverages its vast keyword and sentiment data to ensure products are discoverable by AI agents across platforms.

• Maintains platform agnosticism, focusing on brand success regardless of which marketplace or protocol prevails.

• Increasing channel complexity benefits Pattern, as most brands lack the resources to manage multi-marketplace strategies.

Business performance and growth drivers

• Net revenue retention (NRR) is a key metric, rising from 115% to 122% over recent quarters, driven by brand expansion and tech improvements.

• Growth is supported by expanding brands into new geographies and product lines, with Pattern requiring channel exclusivity and buying inventory directly.

• Sales cycles average 90 days, with logistics and cost-to-serve improvements reducing expenses and increasing value for brands.

• Uses data-driven analysis to identify growth levers for brands, such as geographic opportunities and conversion optimization.