Yes, let it dry out and see if it fires up. I think it might need the carbs cleaned. As for the water, that is why you should run anti-freeze in the seadoo if it is going to be stored below freezing. The engine will always hold water in different locations in the plumbing of the cooling system. Anti-freeze will mix with the water and keep it from having a freezing expansion problem with the water. Sum it up: The water spitting out the rear is normal when it turns over, it could be in the exhaust and the compression of the engine is pushing it out. If your spark is very week the starting fluid, because of the low flash point of alcohol will fire anyway, giving a false impression that the voltage is correct.(Alcohol will ignite from sparks of hitting 2 rocks together) WD-40 's flash point is close to gas/oil mix and also indicates if the spark is correct or close to the right amount of voltage to fire the ignition...If it doesn't fire it could be an electrical problem still, as it just doesn't have the correct voltage. Incorrect voltage under compression won't fire the plugs.(the presents of spark doesn't mean it is correct)
Karl