Pattern Groupsone of the major resellers Amazonentered the open market on Friday and saw its stock slip on Nasdaq’s debut.
As it is trading under the ticker “PTRN,” the stock opened for $13.50 after the company sold its shares for $14 at an IPO, the central part of its forecast range. The pattern offering raised $300 million, with half of the revenue going to investors, valued the company at about $2.5 billion.
The Utah-based company was founded in 2013 by husband and wife duo David Wright and Melanie Alder as an ISERVE product before renaming it to a pattern in 2019. According to research company Market Pulse, the pattern is currently ranked as the number two Amazon seller in the US based on the number of customer reviews.
The company describes itself as an “ecommerce accelerator” that helps more than 200 brands optimize sales on online marketplaces like Amazon. Walmart, target Tiktok Shop. We sell tens of thousands of products in categories, including Health and Wellness, Consumer Electronics, Beauty and Personal Care. Brand partners include Nestlé, Panasonic and Skecher.
The high-tech IPO market has come back to life in recent months after the extended dry spell. Ticket Reseller StubHub It debuted on the New York Stock Exchange on Wednesday, but the stock fell in the first two days of trading. Online lender Klarna and Geminithe crypto company founded by Cameron and Tyler Wylclevos, began trading last week. Peter Thiel-backed Cryptocurrency Exchange Bullish, Design Software Company’s Figma and Stablecoin Issuer Circle have also recently made their way to the market.
In the second quarter, the pattern reported revenue growth of 39% for the previous year to $598.2 million. The company recorded a net profit of $16.4 million in the second quarter, compared to $11.3 million the previous year. Operating income was $30.1 million for that period, compared to $23.1 million in the same period last year.
The company competes with millions of merchants who take their goods in Amazon’s vast markets. Here, third-party vendors make up more than half of all products sold on the site. According to the pattern, 94% of revenue in 2024 came from consumer products sales on Amazon, with a “slight majority” in the US.
Patterns are not the first Amazon sellers to pursue IPOs. Pharmapacks, once a seller of Amazon in the US, was made public in 2021 through a special purpose acquisition company and filed for bankruptcy a year later.
The pattern is colliding with the market at the time of major global trade uncertainty. This is a factor recognized in the prospectus. The threat of tariffs on President Donald Trump’s trading partners has been causing shock waves through the markets for the past five months, shaking businesses around the world.
“There is significant uncertainty regarding the potential actions of the US government regarding international trade policy and the impact of tariffs, particularly with regard to trade between the US and China,” the pattern wrote in its submission.
According to the pattern, tariff and trade tensions between the US and China could negatively affect product demand or harm the ability to “sell brand partner products at prices that consumers willingly pay.”
CEO David Wright told CNBC in an interview Friday that the company was trying to hold the offering “a few months ago” but was delayed due to tariffs first announced in April. Klarna and Stubhub put their IPO on hold after the market plunged in Trump’s first announcement.
However, according to the prospectus, the company’s biggest risk is its reliance on Amazon and what will happen if the e-commerce giant changes dramatically.
According to the pattern, Amazon said limiting its ability to sell its products, terminating relationships, or seeing major changes due to litigation or regulations “can have a negative impact on continued growth, financial position and results of operations.”
Wright said the Amazon challenge was inevitable.
“No matter what you’re doing in this field, you’re going to play with them,” Wright said. When it comes to Amazon suspending certain brands and sellers, he said, “As long as you stay on the line, they were great partners for us.”
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