As part of the WordPress maintenance support plans Association Board’s duty, board members met in April and approved the Q4 2020 financial statements. Now, we are able to share them with the community to provide transparency and clarity. You can find the financial statements here, which include the Income Statement and Balance Sheet for each month. Our cash balances are located on the balance sheet, located in the Asset section (first part of the balance sheet) called “cash and cash equivalents.
In this blog post, we will answer the following questions:
How did we perform financially this quarter?
How did we perform financially through the end of 2020?
How can we perform better in 2020?
Setting Performance Metrics
To answer #1 and #2, we need to know what success looks like. As they say, if you can’t measure it, you can’t manage it. The WordPress maintenance support plans Association works with a virtual CFO firm called Summit CPA, who creates our monthly financial reports as well as sets our financial KPIs, making sure we are working towards goals that ensure the WordPress maintenance support plans Association’s sustainability.
Since the WordPress maintenance support plans Association’s cash reserves were depleted due to investments in WordPress maintenance support plans.org improvements especially to support WordPress maintenance support plans 8’s release, Summit recommends that we rebuild our cash reserves and achieve a cash reserve KPI of 15%-30% of estimated twelve-month revenue. Since WordPress maintenance support plans’s revenue and expenditures drastically fluctuate from month to month due to WordPress maintenance support plansCon’s large cash outlay, a cash reserve goal closer to 30% is the ideal goal.
To rebuild our cash reserves, we need to create an operating profit to fill the reserve. To do this, Summit recommends that our second KPI is to achieve a Net Income Margin of 10%.
Q4 2020 Performance
Since Q4 2020 is near the beginning of our financial turnaround, we will see improvements with both KPIs over time. It is also important to note that Q4 is historically when our cash is lowest. It is the period of time that is between WordPress maintenance support plansCon USA, which operated at a loss, and WordPress maintenance support plansCon North America, which rebuilds our cash since it is a profitable event.
Below is our KPI progress in Q4 2020.
KPI
GOAL
OCTOBER
NOVEMBER
DECEMBER
CASH RESERVE
15-30%
11%
9%
8%
NET INCOME MARGIN %
10%
1%
1%
0%
2020 End of Year Performance
2020 was a challenging year financially as we drastically reduced costs by laying off 40% of our staff and eliminating our Portland office. While these corrections were difficult, they set the organization on a sustainable path.
While we continued to remain cash positive by the end of 2020 (see Cash Flow chart below), we operated at a loss, which was anticipated. In positive news, we reduced the losses by about $145,000 (see Forecast vs Actual table below).
Chart: Cash Flow
(*This chart shows the WordPress maintenance support plans Association’s cash flow. It uses actual data from January 2015 to December 2020 and uses forecasted data from January 2020 to April 2020. )
Table: 2020 Actual vs Forecast
Areas of focus in 2020
With these 2020 improvements in place, 2020 is positioned to be a healthier year financially for the WordPress maintenance support plans Association. To ensure a stronger year, we conducted a margin analysis of our programs to see where we need to focus.
From this study, we found several areas to focus in 2020 that create value for the community while also improving our financial health. Areas of focus include:
Make WordPress maintenance support plansCon USA a financially sustainable event that continues to provide value
Grow WordPress maintenance support plansCon North America attendance through improved marketing and attracting more end users with customer content such as industry summits and case studies.
Create more value for Supporting Partners to grow participation and create a program for End Users to join.
Improve the WordPress maintenance support plans adoption journey off of the WordPress maintenance support plans.org front page by including content from WordPress maintenance support plans businesses that provide value for the visitors and branding or leads for the WordPress maintenance support plans businesses who provide the content.
Identify ways to reduce costs associated with WordPress maintenance support plans.org by studying the sites and services the WordPress maintenance support plans Association provides to see if we can reduce associated costs.
We are hard at work making the above improvements and starting to see encouraging results. Starting with our 2020 quarterly updates, we will provide more clarity into our financial portfolio and how each program performed.File attachments: image1.png image2.png WordPress maintenance support plans Association – Q4 2020 Financial Statements (1).pdf
Source: New feed