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What were the key takeaways from Pattern Group's earnings call?

- **Revenue Surge**: 46% YoY to $639M, 81% non-Amazon growth
- **AI-Driven Efficiency**: 122% NRR, 88% EBITDA growth
- **Coupang Breakout**: $4.5M in Q3, $11M+ by year-end
- **Q4 Guidance**: $600-700M (32-36% growth), $38-40M EBITDA
- **Cash Power**: $313M post-IPO, 0 debt
- **AI Expansion**: Automating 14M daily decisions, 38% LLM research usage
- **Global Scale**: 72% intl growth, 392% TikTok surge


**【CEO Summary Section】**

- **Revenue Growth**: Q3 revenue reached $639.7 million, up 46% year-over-year, driven by 81% growth in non-Amazon channels and 72% international expansion to $52.9 million. 
- **Net Revenue Retention (NRR)**: Achieved record 122%, reflecting strong retention of existing brand partners through AI-driven optimizations.
- **Strategic Priorities**: 
  1. **AI & Intelligence Layer**: Investing in agentic workflows and LLM integration for automated, nondeterministic operations.
  2. **Channel Diversification**: Accelerating growth on Coupang (+150x QoQ), TikTok, and global marketplaces.
  3. **Friction Reduction**: Simplifying global logistics and technology adoption for brands.
  4. **Scale & Efficiency**: Leveraging $1.5 billion+ revenue to drive operating leverage and 6% EBITDA margin.

**【CFO Financial Commentary】**

- **Q3 Financials**: 
  - GAAP net loss: $223 million (includes $135M IPO costs)
  - Adjusted EBITDA: $41.1 million (+88% YoY)
  - Free cash flow: $71 million
- **Expense Management**: 
  - SG&A: 8.1% of revenue (down from 8.6%)
  - R&D/CapEx: $92 million invested in AI, warehouses, and automation
- **Q4 Guidance**: 
  - Revenue: $600-700 million (32-36% growth)
  - EBITDA: $38-40 million (44-48% growth)
- **Cash Position**: $313 million post-IPO, with no debt

**【Q&A Highlights】**

- **Agentic Commerce**: Pattern's AI layer enables automated workflows, e.g., 14 million daily price optimizations via Destiny tool. 38% of U.S. consumers now use LLMs for product research.
- **Coupang Growth**: Generated $4.5 million in Q3, with $11 million expected by year-end
- **Unit Economics**: Marketplace mix (e.g., 392% TikTok growth) and geography (72% intl expansion) drive margin variability, but 6% EBITDA margin maintained
- **Pipeline Strength**: 229 new brand partners added, with 32% YoY growth in pipeline
- **Logistics Investment**: $92M in automation, warehouses (e.g., Las Vegas cross-dock)


Pattern Group Inc. (PTRN) Q3 2025 Earnings Call Transcript

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PTRN

PTRN fundamentals

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