How did WTTR's revenue and expenses shift in Q4 2024 compared to previous quarters?

Select Water Solutions, Inc. (WTTR) experienced a decrease in revenue and a corresponding decline in expenses in the fourth quarter (Q4) of 2024 compared to the previous quarter, with significant variations in segmental revenue and certain strategic shifts. 1. **Revenue Shift**: - **Q4 2024 Revenue**: WTTR reported a total revenue of $349.05 million for Q4 2024, which was a decrease from the previous quarter's revenue of $371.35 million. - **Year-over-year Comparison**: This represents a 6.9% decline in revenue compared to the same period in the previous year, where the company reported $374.9 million. - **Segmental Analysis**: Specifically, the Water Services segment experienced a decrease in revenue from $241.8 million in Q4 2023 to $209.32 million in Q4 2024, a decline of 13.4%. In contrast, the Water Infrastructure segment saw an increase in revenue, growing by 26.2% year-over-year, reaching $76.81 million. |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |WTTR|WTTR.N|Select Water|2024 Q1||3.66548E8|169| |WTTR|WTTR.N|Select Water|2024 Q2||3.65131E8|169| |WTTR|WTTR.N|Select Water|2024 Q3||3.71349E8|169| |WTTR|WTTR.N|Select Water|2024 Q4|-6.88603745398282|3.49047E8|169| |WTTR|WTTR.N|Select Water|2025 Q1|2.137782773333915||169| 2. **Expense Shift**: - No data is available regarding the expenses in Q4 2024 compared to the previous quarter. - However, it's important to note that the company's gross profit improved to $44.2 million in Q4 2024, with a gross margin of 12.7%. This suggests that while revenue decreased, the company's operational efficiency may have led to better profitability margins. 3. **Strategic Insights**: The CEO of WTTR, John Schmitz, sold a significant amount of stock, approximately $4.13 million worth, in November 2024. This could be interpreted as a personal assessment of the company's current valuation or future prospects. - Additionally, institutional investors have shown interest in WTTR, with some increasing their stakes and others reducing their holdings. For example, Wellington Management Group LLP reduced its position by 13.5% in the third quarter, while Charles Schwab Investment Management Inc. reduced its stake by 5.4% during the same period. - Despite the revenue decline, WTTR anticipates significant growth in 2025, focusing on expanding its infrastructure network and enhancing its production base. In conclusion, WTTR experienced a decline in revenue and a corresponding reduction in certain expenses in Q4 2024 compared to the previous quarter, with strategic shifts and personal assessments indicating a complex landscape for investors.