Firefox-maker Mozilla's boosted revenue significantly in 2023, but the financial report may also raise concern

Mozilla has posted its financial report for the year 2023. The organization continues to do well. It had big revenue boost in 2023, but the report may also raise concern.

The details:

• Mozilla's revenue in 2023 was 653 million US-Dollar.
• The organization's assets increased by 138 million US-Dollar to 1.335 billion US-Dollar.
• Revenue from search deals and subscriptions fell for the first time.

The big news is that Mozilla managed to increase revenue by about 59 million US-Dollar compared to the year before. That's a big jump in revenue. Even more so, when you take a look at the revenue from search deals, subscriptions, and services.

Search engine deal revenue continues to make the bulk of revenue. It dropped by 15 million US-Dollar to 495 million in 2023, however. Subscription and services revenue, which includes ads, also decreased by 9 million US-Dollar to 65 million revenue in total.

So, what caused the revenue to jump? The financial report lists two areas that contributed heavily. First, Interest and dividend income. It jumped from $9 million in 2022 to $47 million US-Dollar in 2023. Investments contributed 24 million US-Dollar, while Mozilla reported a loss of $19 million back in 2022.

Expenses increased as well

Revenue reached a record high, but so did expenses in 2023. Mozilla's total expenses were $496 million US-Dollar, which is $71 million more than in 2022.

Software development expenses increased by $40 million, other program services by $6 million, branding and marketing by $8 million, and general and administrative by $15 million.

Outlook

Mozilla should be concerned about the falling royalties, advertising, and subscription revenue. The main idea for the past few years was to push subscriptions and advertising to close the gap to royalties. Being too dependent on a single company, in Mozilla's case Google, has never been a wise business decision.

While it is somewhat expected that search engine deal revenue is falling, as Firefox's userbase is shrinking slowly, it should be of concern that the one thing that should make up for the loss tanked in 2023 as well.

The 2024 numbers will show if Mozilla managed to turn around the revenue of its subscription business. Even if it can, reliance on that one search deal with Google will continue to be the main revenue driver for the foreseeable future.

You can download or view the report on the Mozilla website.

What is your take on the report? Should Mozilla be concerned about its two main revenue sources? Or is there a light on the horizon? Feel free to leave a comment down below.

Source

Hope you enjoyed this news post.

Thank you for appreciating my time and effort posting news every day for many years.

2023: Over 5,800 news posts | 2024 (till end of November): 5,298 news posts

RIP Matrix | Farewell my friend