Mozilla’s revenue increased in 2020 to $ 496 million
The Mozilla Foundation released the financial report for 2020 today, revealing that it earned $ 496 million in 2020. The Foundation earned $ 828 million in 2019, but $ 338 million came from a legal dispute with former search engine provider Yahoo .
Revenue increased by approximately $ 6 million in 2020 as a consequence if you ignore the one-time payment of $ 338 million.
Subscription revenue is on the rise
If you look at the sources of income, you will notice that royalty income still accounts for the majority of Mozilla’s income. It dropped from around $ 451 million to $ 441 and includes all search engine bidding.
Mozilla invested heavily in subscription-based products and subscription revenue increased from $ 14 million in 2019 to $ 24 million in 2020. It is still a low percentage of total revenue. Mozilla launched new products, including Firefox Relay Premium or Mozilla VPN, which will generate additional revenue. Mozilla VPN launched in mid-2020 in some countries, but the service is now available in additional regions, which is sure to be reflected in revenue for 2021. The Pocket reading service continues to be the main revenue driver according to the report from Mozilla.
Cost reduction
Mozilla managed to reduce overhead significantly in 2020. The foundation had expenses of $ 495 million in 2019 and managed to reduce expenses to $ 439 million in 2020. Software development expenses decreased from $ 303 million in 2019 to $ 242 million in 2020. Other program services Brand and marketing expenses and expenses also decreased in 2020. General and administrative expenses increased to $ 137 million from $ 124 million the previous year.
Mozilla laid off 320 employees in 2020, reducing the total number of employees from more than 1,000 to less than 800.
Mozilla managed to increase its assets from $ 787 million in 2019 to $ 843 million in 2020.
Outlook for 2021
Mozilla renewed the search engine agreement with Google in 2020 for another three years. Both parties have not disclosed the new agreement, and it remains to be seen how the new agreement will affect Mozilla’s revenue in 2021 and beyond.
Revenue from subscription-based services will likely be higher in 2021 compared to 2020, but it seems unlikely that they will reduce Mozilla’s reliance on search engine offerings in the next few years. Mozilla needs the revenue more than ever, and it will be interesting to see if (and how) the Google deal changed.
Closing words
Mozilla did well financially in 2020, but it’s too early to tell if 2021 will be an equally profitable year for the company. Much depends on the new agreement with Google and the success of the new subscription-based services.
Now you: What is your opinion on the report? (via Sören Hentzschel)
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