Mozilla reports $338M revenue spike from settlement over Yahoo contract


Mozilla’s revenue in 2019 shot up by almost 84% compared to the year before, but the bulk of that increase came from a one-time settlement the organization received from Yahoo and its successor, Verizon Media.

Without that financial shot in the arm, Mozilla’s 2019 financials looked much grimmer; for the second year running, Mozilla’s expenses outweighed revenue.

According to the 2019 financial statement released by the maker of the Firefox browser, Mozilla posted $338 million as “Other revenue,” a new line item that had not appeared in prior years’ reporting. Elsewhere, Mozilla implicitly tied that amount to an earlier contract with Yahoo, which was purchased by Verizon in 2017.

“In CY ((calendar year)) 2019, Mozilla Corporation generated $465M from royalties, subscriptions and advertising revenue, excluding one-time litigation settlement revenue,” wrote Angela Plohman and Roxi Wen, Mozilla’s executive vice president and CFO, respectively, in a post to the company’s website.

Mozilla was a bit more forthcoming in the financial statement. “In 2019, the Corporation recognized $338.0 million of litigation settlement as revenue under Topic 606.”

Six years ago, Mozilla declined to renew its deal with Google to make that search engine the default in Firefox. Instead, Mozilla signed a five-year contract with Yahoo for $375 million annually, considerably more than what Google had been paying.

Copyright © 2020 IDG Communications, Inc.



Source link