Google deal produces 88% of Mozilla's revenue
Separately, Mozilla notes IRS audit over 2005 income from partnership
Computerworld - The Mozilla Foundation's revenue was up 13% in 2007 over the year before, as the organization continued to profit from its partnership with search giant Google Inc., Mozilla's chairman said today.
According to the audited financial statement Mozilla released today, the company's revenue for 2007 totaled $75.1 million, up 13% from 2006's $66.8 million, with the bulk of the year's income coming from Mozilla's search deal with Google.
Search royalty payments accounted for $68.2 million, or 91% of 2007's revenue, said Mozilla's financial statement; that percentage was down slightly from the 92% of 2006's income attributed to search.
About $60 million, or 88% of the search royalties, came from Google, with the remainder from other agreements Mozilla has with Yahoo Inc. and Amazon Inc. Interestingly, although Mozilla's total search revenues were down in 2007, the percentage attributed to the Google deal went up; in 2006, 85% of all search income, or $52.3 million, came from Google.
The agreement between Mozilla and Google pays the former for assigning the latter as the default search engine in Firefox, and for click-throughs on ads placed on the ensuing search results pages.
Mozilla renewed the deal with Google last August and signed a three-year contract that ends in November 2011. At the time, the agreement was set to expire this month.
Baker noted, however, that the growth in the revenue it received from Google failed to keep pace with the increase in Firefox's user base. "[Although] the Firefox user base and search revenue have both increased from 2006 ... search revenue increased at a lesser rate than Firefox usage growth as the rate of payment declines with volume," Baker said.
During the same period, the number of people using Firefox on a daily basis nearly doubled, Baker maintained, growing from 27.9 million in 2006 to 48.9 million in 2007.
The financial statement also showed that Mozilla's expenses ballooned in 2007, climbing 68% to $33.3 million from 2006's 19.8 million. Most of that increase was pegged to new spending on software development, which increased 75%, to $20.7 million in 2007 from $11.8 million in 2006.
"Expenditures remain highly focused in two key areas: people and infrastructure," said Baker. "By the end of 2007, Mozilla was funding approximately 150 people working full or part-time on Mozilla around the world." The biggest concentrations of paid employees are in the U.S., Canada and Europe, although it has smaller outposts in China, Japan, New Zealand and South America.
- Silicon Valley's 19 Coolest Places to Work
- Is Windows 8 Development Worth the Trouble?
- 8 Books Every IT Leader Should Read This Year
- 10 Hot Hadoop Startups to Watch
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- The Benefits of IBM: The Savings of Open Source Download Now
- Logicalis eBook: SAP HANA: The Need for Speed Without timely business insights, organizations today can suffer logistical, manufacturing, and even financial disaster in a matter of minutes
- Neustar 2014 DDoS Attacks and Impact Report For the third consecutive year, Neustar surveyed hundreds of companies on distributed denial of service (DDoS) attacks. The survey reveals evidence that the...
- Acxiom Case Study This case study, which focuses on Acxiom, explores how the company was able to secure employee data, reduce migration costs and boost productivity...
- Top 4 Digital Signage Fails Join RMG Networks for a look at four of the most common reasons digital signage fails in corporate businesses. Learn about strategies to...
- Building Tomorrow's Infrastructure Listen to this podcast to discover how Crider Foods worked with PC Connection to update their IT infrastructure, while maintaining compliance and control. All Open Source White Papers | Webcasts