Mozilla has published its audited annual financial statement for 2021, and the prospects couldn’t be better.
The organization was able to increase total revenue to $600 million, an increase of over $100 million compared to 2020. Search engine revenue, especially paid by Google as well as other search engine companies, increased by more than $80 million in the year to $527 million.
While this is impressive growth, subscription and advertising revenue has grown even more. Last year, Mozilla earned $24 million from subscriptions and ads. In 2021, revenue has grown to $56 million.
Mozilla’s main sources of revenue have grown exponentially. In fact, 2021 revenue is second only to 2019 revenue, but only due to a one-time payment Mozilla received the year from Yahoo.
The organization was able to cut expenses significantly in 2021 besides. Expenses totaled $339 million in 2021, down more than $100 million compared to $438 million in 2020.
Software development expenses were reduced from $242 million to $199 million, general and administrative expenses from $137 million to $81 million, and branding and marketing expenses from $37 million to $30 million.
Combined, Mozilla has managed to increase its net assets by about $200 million to $1.164 million in 2021.
Still very dependent on Google
Revenue is largely dependent on search engine deals. While revenue from subscriptions and ads is growing faster, it still only makes up a small portion of Mozilla’s total revenue.
About 87% of Mozilla’s total revenue comes from royalties. The organization renewed the search engine’s contract with Google in 2020 for a period of three years. Details weren’t revealed and since Firefox’s user base seems stagnant, it could be why Mozilla gets better prices than Google. There are other possibilities, including more search activity for Firefox users.
Subscriptions and advertising revenue grew 133% in 2021. Information about individual services is not provided in the financial statements. Mozilla has created several services in the past two years, including Firefox VPN, Pocket Premium and Hits, Firefox Relay, and others. Advertising revenue is included in the section as well.
analysis and forecasts
Mozilla managed to increase revenue by more than $100 million in 2021. The 20.97% increase in revenue can be attributed to the new 2020 search engine deal with Google, and Mozilla’s focus on increasing subscription and advertising revenue.
The organization still relies on search engine deals, and it looks like that won’t change anytime soon. Dependency is being reduced every year, and newly created services such as Firefox Relay Premium may accelerate this trend in the coming years.
The search engine’s contract with Google ends in 2023 and there’s a good chance it will be renewed again that year.
Mozilla’s future looks bright financially.
You can view the financial report for 2021 over here.
Now you: Do you use other Mozilla services besides Firefox?
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