Executive Summary

Q1 2024 delivered strong growth: Revenue $30.15M (+60% YoY), gross margin 34.7% (+500bps YoY), and net income $3.18M (+480% YoY), with diluted EPS $0.08 .
Mix shift to in-store UTV/ATV/e-bike sales drove performance, while pontoon boat revenue declined on dealer floorplan financing pressure in a high-rate environment .
Operations scaled: production capacity increased to 3,000+ vehicles/month, and retail footprint expanded to 2,800+ locations across 48 states; IPO closed raising $5.85M to fund growth initiatives .
Sequentially vs Q4 2023: revenue down to $30.15M from $39.6M (seasonality and mix), gross margin improved to 34.7% from 30.7%; net income modestly lower to $3.18M vs $3.80M .
Wall Street consensus (S&P Global) was unavailable at time of writing; therefore, we cannot classify beats/misses vs estimates. We attempted retrieval but encountered an SPGI request-limit error.

What Went Well and What Went Wrong

What Went Well

Channel expansion and mix shift: “We signed an ongoing national agreement with a global omnichannel retailer… now eligible to be stocked at over 1,300 stores in 13 states beginning in May” and “entered into an ongoing agreement with Fleet Farm” .
Manufacturing scale and margin: “Our production crew is able to produce 3,000+ vehicles each month” and gross margin improved to 34.7% on lower freight costs and decreased returns .
Product innovation and lineup breadth: New ATV models (MSA 600, MSA 1000) and 2024 1000 UTV launched; showcased vehicles at major industry events, supporting brand and dealer momentum .

What Went Wrong

Pontoon boats headwinds: Revenue fell to $1.5M (-38% YoY) as sales shifted to dealers and floorplan financing became more difficult in a high-rate environment .
Operating expense growth: Total OpEx rose to $6.48M (+31% YoY) on rent and professional fees, and higher selling/marketing tied to increased sales activity and chargebacks .
Working capital pressure: Net cash used in operating activities was -$0.64M in Q1 2024, driven by increases in accounts receivable and inventory .

Financial Results

Metric	Q1 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$18.84	$39.60	$30.15
Gross Profit ($USD Millions)	$5.62	$12.10	$10.45
Gross Margin %	29.8%	30.7%	34.7%
Net Income ($USD Millions)	$0.55	$3.80	$3.18
Diluted EPS ($USD)	$0.01	$0.10	$0.08
Operating Expenses ($USD Millions)	$4.93	$7.37	$6.48

Metric vs Estimates (Q1 2024)	Actual	Consensus (S&P Global)
Revenue ($USD Millions)	$30.15	Unavailable (SPGI request-limit error; consensus could not be retrieved)
Diluted EPS ($USD)	$0.08	Unavailable (SPGI request-limit error; consensus could not be retrieved)

Segment	Q1 2023 Revenue ($M)	Q1 2024 Revenue ($M)	YoY Growth %	Q1 2023 GM %	Q1 2024 GM %
UTVs, ATVs, e-bikes	$16.5	$28.7	+74.1%	31.6%	35.7%
Pontoon Boats	$2.4	$1.5	-38.2%	17.6%	15.2%

KPIs	Q4 2023	Q1 2024
Production Capacity (Vehicles/Month)	n/a	3,000+
Retail Locations / States	n/a	>2,800 / 48
Cash & Equivalents ($M)	$0.77	$0.21
Net Cash from Operations ($M)	n/a	-$0.64
Accounts Receivable ($M)	$9.57	$14.20
Inventory ($M)	$25.80	$27.18
IPO Gross Proceeds ($M)	—	$5.85 (Apr 2024)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2 onward	Not provided	Not provided	Maintained (no formal guidance)
Gross Margin %	FY/Q2 onward	Not provided	Not provided; management expects margin enhancement via efficiencies	Commentary only
Operating Expenses	FY/Q2 onward	Not provided	Not provided	Maintained (no formal guidance)
Tax Rate	FY/Q2 onward	Not provided	Not provided	Maintained (no formal guidance)
Segment-specific	FY/Q2 onward	Not provided	Not provided	Maintained (no formal guidance)
Dividends	FY/Q2 onward	None	None	Maintained (no dividends)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Distribution expansion	Tractor Supply partnership, strong Q4 retail presence	National in-store agreement with global omnichannel retailer; Fleet Farm partnership	Expanding footprint; >2,800 locations
Supply chain & freight	Margin improvement as container freight declined since mid-2022	Margin lift driven by decreased returns and lower freight costs YoY	Positive margin tailwind
Macro/credit environment	Stable Q4 pontoon sales	Pontoon dealers face floorplan financing challenges amid high rates	Headwind for boats
Manufacturing capacity	Facility capabilities outlined; 286k sq ft	Production capacity up to 3,000+ vehicles/month	Increasing throughput
Product roadmap	New ATVs and 1000 UTV launched	Continued lineup expansion and showcases	Broader offering
Corporate finance	IPO closed; Nasdaq listing	IPO proceeds referenced; funding growth	Liquidity improved

Note: No earnings call transcript was available in our document set for Q1 2024; themes derived from press releases and filings.

Management Commentary

“The first quarter of 2024 was highlighted by our successful IPO and Nasdaq listing, along with substantial top and bottom line growth on strong sales and margin improvement… Our production crew is able to produce 3,000+ vehicles each month” — David Shan, Founder, Chairman & CEO .
“We signed an ongoing national agreement with a global omnichannel retailer… eligible to be stocked at over 1,300 stores in 13 states beginning in May… We also entered into an ongoing agreement with Fleet Farm” — David Shan .
“Our focus on distribution channel expansion has resulted in over 2,800 retail locations promoting our brand in 48 states… We believe with increased operating efficiencies we can further enhance margins while continuing to grow our revenue” — David Shan .

Q&A Highlights

No Q1 2024 earnings call transcript was available in the retrieved documents; Q&A highlights and clarifications cannot be provided.

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 2024 revenue and EPS, but the request failed due to an SPGI request-limit error; therefore, consensus comparisons are unavailable at time of writing.
Given the lack of consensus data, we cannot assert beats/misses versus Wall Street expectations. If consensus becomes available, we would update Actual vs Consensus and highlight any significant surprises accordingly.

Key Takeaways for Investors

Mix-driven margin resilience: Lower freight costs and reduced returns plus in-store sales mix lifted gross margin to 34.7% despite seasonal sequential revenue decline from Q4; margin trajectory appears favorable with operating efficiency initiatives .
Growth engine in UTV/ATV/e-bikes: YoY segment revenue +74%, supported by new models and expanded retail partnerships; focus on this category is the near-term growth driver .
Pontoon boat caution: Dealer financing headwinds and shift to dealer model pressure near-term boat revenue and margins; monitor interest rate environment and dealer credit conditions .
Scale and capacity: 3,000+ vehicles/month production capacity and broader retail footprint (>2,800 locations in 48 states) set the stage for throughput and distribution leverage .
Liquidity and execution: $5.85M IPO proceeds strengthen funding for marketing, R&D, and distribution centers; working capital use is increasing (AR/inventory up), so cash conversion and operating cash flow should be watched closely .
Seasonality matters: Sequential revenue softness vs Q4 is consistent with business mix; focus on margin progression and channel expansion rather than quarter-to-quarter top-line variance .
Risks: Supplier concentration in China, dealer financing availability, product liability, and regulatory scrutiny remain salient; diversify supply base and continue quality/ compliance investments .

References: Q1 2024 8-K and Exhibit 99.1 press release ; Q1 2024 press release ; Fleet Farm partnership ; Omnichannel retailer agreement ; Manufacturing expansion ; FY 2023 results (Q4 metrics) ; IPO closing .

Massimo Group (MAMO)·Q1 2024 Earnings Summary