Jolla Achieves Profitability & Plans Expansion Beyond Mobile

Jolla Achieves Profitability and Expands Licensing Options

Jolla, the Finnish company developing Sailfish OS, has announced it has reached profitability, nearly a decade after its founding by former Nokia employees seeking a Linux-based mobile operating system alternative to Android.

Financial Performance and Growth

The company characterizes 2020 as a pivotal year, reporting a 53% year-over-year increase in revenue. Furthermore, its EBITDA, a key indicator of operational performance, reached 34%.

This positive trajectory is attributed to the maturation of the company and its assets, resulting in a growing customer base and improved efficiency.

Introducing AppSupport for Linux Platforms

Jolla has introduced a new licensing product, AppSupport for Linux Platforms. This offering allows Linux platforms to achieve compatibility with standard Android applications independently of a full Sailfish OS license.

Since 2013, Sailfish OS has inherently supported Android app compatibility, but AppSupport provides a more focused solution for specific embedded systems.

Targeting the Automotive Industry

Early interest in AppSupport is particularly strong within the automotive sector. Companies are exploring its potential for developing in-house infotainment systems.

This technology enables embedded Linux platforms to run Android apps without relying on Google’s automotive solutions, presenting a “Google-free” alternative for car manufacturers.

Expanding Beyond Automotive

The applications of AppSupport extend beyond automotive. It can be utilized in various embedded Linux systems, such as IoT devices, to enhance functionality by enabling the execution of popular applications.

This provides added value for customers and broadens the potential market for the technology.

CEO Perspective on Success

“Jolla is doing fine,” states CEO and co-founder Sami Pienimäki. “I’m happy to see the company turning profitable last year officially.”

He emphasizes that the company’s decade-long journey has been marked by continuous improvement in both efficiency and revenue generation.

“Our revenue grew over 50% from 2019 to 2020, reaching €5.4 million, while our operational costs remained stable, leading to significant profitability.”

Licensing Sailfish OS for Digital Sovereignty

While Android and iOS dominate the consumer mobile OS market, Jolla licenses its open-source Sailfish OS to governments and businesses.

This provides them with a customizable platform that doesn’t require dependence on Google.

Russia was among the first nations to embrace this alternative.

Geopolitical Factors and Demand for Alternatives

The increasing emphasis on digital sovereignty, coupled with geopolitical tensions impacting access to U.S.-based technologies, has bolstered the demand for independent mobile OS platforms.

This trend is exemplified by China’s Huawei, which recently launched its own Android alternative, HarmonyOS.

HarmonyOS as Market Validation

Pienimäki views HarmonyOS not as a competitor, but as validation of the market for alternatives to Android.

“I wouldn’t necessarily see Huawei coming out with the HarmonyOS value proposition and the technology as a competitor to us — I think it’s more proving the point that there is appetite in the market for something else than Android itself,” he explains.

He believes both Sailfish OS and HarmonyOS cater to this growing demand and complement each other’s strategies.

Expansion into the Chinese Market

Jolla has been actively pursuing opportunities in the Chinese market for several years. The company remains optimistic about its prospects despite the emergence of HarmonyOS.

“The way we see the Chinese market in general is that it’s been always open to healthy competition and there is always competing solutions — actually heavily competing solutions — in the Chinese market.”

Pienimäki highlights the Chinese market’s openness to competition and Jolla’s commitment to offering Sailfish OS as a viable alternative.

Automotive Sector: A Key Opportunity for AppSupport

Jolla identifies the automotive sector as a prime target for AppSupport, noting that car manufacturers are actively seeking solutions for their digital cockpits.

The company argues that owning and controlling the user experience within the cockpit is strategically important for automakers.

“There’s been a lot of, let’s say, positive vibes in that sector in the past few years — newcomers on the block like Tesla have really shaken the industry so that the traditional vendors need to think differently about how and what kind of user experience they provide in the cockpit.”

Potential Applications Beyond Automotive

While the automotive sector presents a significant opportunity, Jolla is also exploring potential applications of AppSupport in other areas, including IoT and heavy industry.

The ability to run popular applications like Spotify, Netflix, or sector-specific communication tools on Linux platforms creates substantial interest.

“You can think of like running the likes of Spotify or Netflix or some communications solutions specific for a certain sector.”

Securing Growth Financing

Jolla is currently raising a €20 million growth financing round to support the marketing of AppSupport and further development of its Sailfish OS licensing business.

The company sees growth potential in Europe, its largest licensing market, and is also experiencing positive developments in parts of Africa.

It remains committed to its ambitions in China.

Looking Ahead

“We are really turning a next chapter in the Jolla story so exploring new emerging opportunities — that requires capital and that’s what are looking for.”

Pienimäki expresses confidence in securing the funding and believes it will enable Jolla to invest further in both Sailfish OS and AppSupport, expanding their reach and impact in the market.

“There’s definitely an appetite for this and that will definitely put us in a better position to invest further — both to Sailfish OS and the AppSupport technology.”