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| Mozilla expects sales of more than $500 million |
The Mozilla Foundation has released its annual report highlighting its work in 2021 and appending the latest 2020 annual accounts.
The report shows us the financial position of the institution a year ago. It's no secret that the agency has been through many difficult years lately.
In 2020, several employees were laid off as part of the reorganization of Mozilla's for-profit unit.
Firefox may have made a number of technological advancements, but it is also struggling in a market that is currently dominated by Chromium-based browsers.
However, in 2020, the enterprise's for-profit segment will consist of search partnerships (mostly driven by search deals with Google), subscriptions, and $466 million in advertising revenue.
It's basically the same as it was in 2019, when the company generated $465 million in revenue from these sources.
For 2021, the organization expects sales in excess of US$500 million. Its new products like Mozilla VPN, Firefox Relay Premium, Pocket, and other business initiatives are slowly starting to bear fruit. But firmly.
As the company's executive vice president and chief financial officer, Angela Blumann, Eric Mulheim noted in the new announcement, sales of new products could increase 150% this year, which would account for 14% of the company's sales in 2021. Mozilla VPN expects its revenue to grow by 450% from 2020 to 2021.
Mozilla needs more users
In 2020, 86% of the organization's revenue came from search transactions with Google. This may be down from 88% in 2019. But Mozilla is still completely dependent on Google for now.
The organization is trying to diversify its sources of income to reduce its reliance on research agreements with competitors and is becoming less and less in line with its overall philosophy.
Mitchell Baker, CEO and Chairman of the Mozilla Foundation, wrote, “As advertising evolves and online business models evolve, we are exploring new, responsible ways to generate income that align with our values and differentiate us from the crowd.”
"We have always believed that the closure of cookies and accounts from online advertising systems was imminent," he added. It is really necessary. We are able to lead the industry towards a new paradigm of responsible advertising that respects people while creating value for the company. By building trend-setting products, we are building a future-oriented business.
What Mozilla needs, however, is more users to take over its services. Be it your browser or Mozilla VPN.
With users becoming increasingly suspicious of Google's motives and the mistakes made by the Microsoft Edge team over the past few months, there is still room for browsers besides Google Chrome.
However, Mozilla's efforts to offer tips and sponsored ads for Firefox have not made the organization popular with users.