Recently The Mozilla Foundation announced the publication of its corresponding financial statements for the year 2020. And it is that in the shared information we can see that in 2020, Mozilla’s income was almost cut in half to 496.86 million dollars, approximately the same as in 2018.
And it is that taking this into account, by way of comparison, in 2019, Mozilla earned $ 828 million, in 2018 – $ 450 million, in 2017 – $ 562 million, in 2016 – $ 520 million, in 2015 – $ 421 million, in 2014 – $ 329 million, while in 2013 – 314 million, 2012 – 311 million.
From what Mozilla received it is mentioned that 441 million out of 496 were received in royalties from the use of search engines (Google, Baidu, DuckDuckGo, Yahoo, Bing, Yandex), as well as cooperation with various services (Cliqz, Amazon, eBay) and the placement of contextual ad units at the start of your page.
It is also mentioned that in 2019, the amount of these deductions amounted to 451 million, in 2018 to 429 million and in 2017 to 539 million dollars. According to unofficial data, an agreement with Google on the transfer of search traffic, which is concluded until 2023, generates about 400 million dollars a year.
“As advertising changes and the future of the web’s business model is at stake, we have been exploring new and responsible ways to monetize that align with our values and set us apart,” writes Mitchell Baker, CEO and President of the Mozilla Foundation, in today’s announcement. “We have long believed that the disapproval of cookies and a reckoning of the online advertising ecosystem was coming, and it was sorely needed. Now it is here, and we are positioned to guide the industry toward a new model of responsible advertising that respects people while delivering value to businesses. By creating products for the future, we are building a business for the future.
Another of the data that was released in the financial statement is that last year, $ 338 million was awarded to the Other Income category in a lawsuit with Yahoo for a violation of a contract between Mozilla and Yahoo.
This year, the “Other Income” column indicates $ 400,000, as in 2018, there was no such income graph in the Mozilla report. $ 6.7 million were donations (last year – $ 3.5 million). The volume of funds invested in investments in 2020 amounted to $ 575 million (in 2019 – 347 million, in 2018 – 340 million, in 2017 – 414 million, in 2016 – 329 million, in 2015 – 227 million, in 2014 – 137 million ). Subscription and advertising services revenue in 2020 amounted to $ 24 million, which is double that of 2019.
In addition, it should be noted that Mozilla invested heavily in subscription-based products and it is mentioned in the financial statement that subscription income increased from $ 14 million in 2019 to $ 24 million in 2020.
This is still a low percentage of overall income. 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.
In this way, we can understand that It is no longer a secret that Mozilla is already through a series of difficult years, with major layoffs in 2020 as it restructured its for-profit division, Mozilla Corporation. Its flagship browser, Firefox, despite a number of technical advancements, is also struggling in a market that is now dominated by Chromium-based browsers.
Costs are dominated by development costs ($ 242 million in 2020 versus $ 303 million in 2019 and $ 277 million in 2018), service support ($ 20.3 million in 2020 versus $ 22.4 million in 2019 and 33.4 million in 2018), marketing ($ 37 million in 2020 versus 43 million in 2019 and 53 million in 2018) and administrative expenses ($ 137 million in 2020 versus 124 million in 2019 and 86 million in 2018). $ 5.2 million spent on grants (in 2019 – $ 9.6 million).
The total cost was $ 438 million (in 2019 495 million, in 2018 – 451, in 2017 – 421.8, in 2016 – 360.6, in 2015 – 337.7, in 2014 – 317.8, in 2013 – 295 million, in 2012 – 145, 4 millions). The size of assets at the beginning of the year was $ 787 million, at the end of the year – $ 843 million.
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