Mozilla

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The State of Mozilla Annual Report, 2009

Sustainability

November 18, 2010

Mozilla remains well positioned, both financially and organizationally, to advance our mission of building openness and participation into the Internet. Our financial situation is very similar to last year and our revenues continue to grow steadily.

For the calendar year 2009, Mozilla's consolidated reported revenues (Mozilla Foundation and all subsidiaries) were $104 million, up 34 percent from 2008 reported revenues of $78 million. Revenues include a 2009 reported loss of $104,000 in investments from the Foundation's long-term portfolio as a result of economic conditions and investment values at the end of 2009. This compares to our 2008 loss from investments of $7.8 million. Excluding investment gains and losses, revenues from operational activity were $104 million compared to $86 million in 2008, an annual increase of 22 percent. The majority of Mozilla revenue continues to be generated from the search functionality included in Mozilla's Firefox product from organizations such as Google, Yahoo, Yandex, Amazon, eBay and a handful of others.

Mozilla consolidated expenses for 2009 were $61 million, up approximately 26 percent from 2008 expenses of $49 million. Mozilla operating expenses in 2009 continued to remain highly focused on people and infrastructure. At the end of 2009, Mozilla was funding approximately 250 people working around the world. Total nonprofit grants, community donations and contributions in 2009 remained at approximately $1 million as in previous years. Mozilla supported projects in 2009 included contributions to accessibility, community support, and education including such organizations as Mozdev, Software Freedom Conservancy, Seneca College, University of Toronto, UC Irvine, NorthEastern University, Creative Commons, Paciello Group, StopBadWare, the W3C, and accessibility support such as Orca screen reader, jQuery library and HTML 5 video. In late 2009, the Mozilla Foundation began refocusing its public support programs toward Mozilla Drumbeat, which was launched in early 2010.

Total assets as of December 31, 2009 were $143 million compared with $116 million at the end of 2008, an increase of 23 percent. Unrestricted net assets at the end of 2009 were $120 million compared with $94 million in 2008, a 28 percent increase. The restricted assets remain the same as last year: a "tax reserve fund" established in 2005 for a portion of the revenue the Mozilla Foundation received that year from the search engine providers. As noted last year, the IRS has opened an audit of the Mozilla Foundation. We do not yet have a good feel for how long this process will take or the overall scope of what will be involved.

We believe Mozilla's financial resources will continue with relative stability and we continue to use our assets to execute on our mission.

More details can be found in our Form 990, Audited Financial Statement and related FAQ.