Pattern Group Inc. Series A Common Stock Goldman Sachs Communacopia + Technology Conference 2026

Okay. We're going to kick off day 3. Thanks everyone for coming. It's my pleasure to welcome the team from Pattern Group. David Wright, CEO. Dave, this is your first Communacopia. Thank you for coming to the conference. You were going through a process a year ago during this conference, and you've been a public company for just around a year now.

Yeah. It's been a great journey.

Yeah. Well, welcome to the conference. Let me start by reading a safe harbor I have to read, and then we're going to get into a conversation. Before we begin, I'd like to remind everyone that today's presentation and webcast may contain forward-looking statements based on the company's current expectations and assumptions about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from what the company discusses today. Please refer to the company's latest filings with the SEC for more information on these risks and uncertainties. With that, let's get started. I always like to take a step back before we take a step forward. You've been on a journey in terms of the company you've built and scaled. As you said, you've now been a public company for just about a year.

Talk to us a little bit about setting the stage for the journey you've been on and what you've been trying to build and scale.

Well, it's been quite fun. I just like solving problems, and so, it seems very much the same as pre-IPO. For all intents and purposes, we're doing the exact same thing. Matter of fact, the stock will go up sometimes and stock will go down, and we get praised when it goes up, and we get hit when it goes down. I'm like, "We do the exact same thing as we did the whole time." So it's been a lot of fun. It's been an interesting journey. But the core of what we do, if you think about it, we are just trying to build a technology-driven intelligence layer that's very thin, operationally efficient for brands across digital surfaces. And those surfaces are becoming broader than we ever expected back when we started.

Because we help on the digital side, 10% of all goods were sold digitally when we started the company. Now it's 24%, 25%. So just that has been a boom for us. And then the surface area, even when we went public a year ago, we were 94% Amazon. If you think about your own purchase behavior, you probably are somewhat similar. This last quarter, we were 9.35. So almost 10% non-Amazon, and that surface area is complex and evolving quickly. So building technology around that and operational efficiency, moving the box, is just a highly complex challenge that brands need to do at a price point they can afford.

Yeah. So talk to us a little bit about that environment, right? Because as we look at it, the e-commerce landscape is only getting more complicated, not less complicated. So for your existing brands, and when you have conversations with where brands are today and coming into your ecosystem, what are you trying to solve for? What are the most often questions you get? Where do you think some of these solutions have to go to meet the landscape and the shifting of the sands?

Well, the core has just always stayed the same. A brand has some product idea. They need to get it into the mind and the hands of a consumer through all means necessary, and that landscape is complex. And they need to be able to do it at the lowest possible price. So if you think of Pattern, we track what we call internally, what we call cost to serve. So how much does it cost us to run $1 of revenue through the entire machine across all surface areas for a brand? And then, of course, I estimate, and we have some pretty good numbers on what it might cost a brand to do it on their own, because that's sort of who we compete with. And I don't believe at the scale we're at, a brand can do it at the same price point.

I'll give you one example. If you just take logistics, in many cases, a brand will do the final mile delivery, and in many cases, they'll send into a marketplace used, like Fulfillment by Amazon or some network. For us, just that inbound process to just marketplaces, we do 95% of the time full truckloads at $0.11 a unit. For that final 5%, it's split between parcel and partial trucks. Just partial trucks is $0.44, 4X the cost. If you're sitting in a brand's shoes, imagine a brand, I don't think of one, Pandora jewelry, even TUMI luggage, both of which are brands that work with us, they can rarely send in a full truckload to 18 locations a week. It's near impossible. That thin layer becomes.

We're just trying to do it as efficiently and in an optimized way for a brand at a price point we don't believe they can do on their own.

Right. Maybe just sticking with that as a theme and just sticking with the framework of what you've built, talk to us a little about what you do, for those who know it less, what you do for brands on generating business for them, helping on the inventory side of the equation, helping them on the intelligence side of the equation, running their business, just so we can level set with some of the key kernels of where you touch these brands and how you help them grow and scale.

Yeah. Maybe if we go back to the starting of the company. The start of the company was my cousin had this little girl's headband brand, and we got talking about how she might grow that brand, and it's quite simple. My background is all on the tech data side. I had never worked with a brand. I had never sold a widget. I didn't enjoy that work at all, I didn't think. Then I got working on that, and it was a formula. Revenue for the headbands is Traffic. How many eyeballs can you get to see a product? Times conversion, times price, times availability. Is the good available close to the consumer? So our entire tech stack, 44 patents, either issued or pending now, is built on that and that alone. Revenue for a brand is traffic conversion price. Then we just measure. We know if our machine works because our NRR, net revenue retention of brands, which includes any brand that might leave us, is running now at 129%.

That means that that optimization engine and the logistics engine and the price point that a brand is willing to pay and can pay is all working. We focus on that number. If that NRR number is high, you will see us win for a very long time. Because for one, we do not have to go out and resell. We have a built-in 30% growth or 29% or whatever it was last quarter. It is easy for a sales team to go and close deals because we can say the machine works.

Okay. Understood. You talked a little bit earlier about the percentage of the mix of the business that is Amazon today, but you have faster growth in the non-Amazon part of the business. Another element of the e-commerce landscape is the rise of these other marketplaces, not only in the U.S., but globally. Talk a little bit about how the marketplace landscape is changing and how that opens up potential for you to work with brands as they think about changing their geographic SKU and even their seller-based marketplace SKU.