Pattern Group (NASDAQ:PTRN) Issues Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Pattern Group (NASDAQ:PTRN) posted its quarterly earnings results on Wednesday. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.10 by $0.06, Zacks reports. Pattern Group’s quarterly revenue was up 43.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.17 earnings per share.

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

• Pattern reported a strong Q1 with revenue up 43% to $774M and adjusted EBITDA up 59% to $54M, and it raised full?year guidance to about $3.3B revenue (+32% YoY) and ~$200M adjusted EBITDA.
• Key operating metrics show durable health and diversification — NRR reached a record 127%, international revenue grew 101%, non?Amazon revenue grew 119%, and other monetization grew 173% YoY.
• The company emphasizes a technology and scale advantage — combining AI, logistics, marketplace execution and social commerce (named TikTok Shop strategic partner of the year) to drive conversion, faster delivery and product localization.
• Pattern is materially increasing tech investment (R&D excluding SBC up 77% to $10.1M) and expects near?term expense pressure from R&D, marketing for its May “Accelerate” event, and startup costs for an East Coast facility that may weigh on quarterly margins.
• Balance sheet and risks — the company ended Q1 with $344M cash, no debt and $150M revolver capacity and generated $124M operating cash flow (TTM), while noting macro risks (Middle East volatility and marketplace fuel surcharges) that it says can largely be passed through.

Pattern Group Stock Up 1.7%

PTRN stock traded up $0.24 during trading on Wednesday, hitting $14.25. 1,965,162 shares of the company’s stock traded hands, compared to its average volume of 618,913. Pattern Group has a 52 week low of $8.92 and a 52 week high of $20.10. The stock has a fifty day moving average price of $12.27 and a two-hundred day moving average price of $13.33. The stock has a market capitalization of $2.21 billion and a price-to-earnings ratio of -7.02.

Pattern Group announced that its board has authorized a stock repurchase plan on Thursday, March 5th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to reacquire up to 5.6% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Institutional Trading of Pattern Group

Several institutional investors have recently added to or reduced their stakes in PTRN. Vanguard Group Inc. bought a new stake in Pattern Group during the third quarter valued at $20,640,000. Blair William & Co. IL bought a new stake in Pattern Group during the third quarter valued at $253,000. Legal & General Group Plc bought a new stake in Pattern Group during the third quarter valued at $411,000. UBS Group AG bought a new stake in Pattern Group during the third quarter valued at $7,578,000. Finally, Sei Investments Co. bought a new stake in Pattern Group during the third quarter valued at $654,000.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Stifel Nicolaus cut their price target on shares of Pattern Group from $22.00 to $21.00 and set a “buy” rating on the stock in a report on Friday, March 6th. Robert W. Baird cut their price target on shares of Pattern Group from $22.00 to $20.00 and set an “outperform” rating on the stock in a report on Friday, March 6th. Needham & Company LLC reaffirmed a “buy” rating and issued a $22.00 price target on shares of Pattern Group in a report on Thursday, January 15th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Pattern Group in a report on Monday, March 23rd. Finally, JPMorgan Chase & Co. cut their price target on shares of Pattern Group from $21.00 to $17.00 and set an “overweight” rating on the stock in a report on Friday, March 6th. Ten 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 company. Based on data from MarketBeat.com, Pattern Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $20.22.

About Pattern Group

At Pattern, we are on a mission to help brands accelerate profitable growth on global ecommerce marketplaces. Today, our proprietary technology and on-demand experts operate across more than 60 marketplaces to increase product sales to consumers in more than 100 countries. Utilizing more than 46 trillion data points and sophisticated machine learning and artificial intelligence (“AI”) models, we strive to optimize and automate key levers of ecommerce growth, including advertising, content creation and management, pricing, forecasting and customer service.