Mark Patterson's questions to MOBIVITY HOLDINGS (MFON) leadership • Q3 2024
Question
Inquired about the financial details of the SMS business divestiture, including the cash received and its allocation, and asked for clarification on the timeline to achieve profitability and positive cash flow.
Answer
The company received about $300,000 in cash at closing for the SMS business, with a two-year earnout based on performance. The use of cash is still being evaluated to balance growth and capital structure. Profitability is anticipated in the first half of 2025, aided significantly by the shedding of expenses and legacy technology from the divested SMS business, which has reduced costs and made the company more lean.