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LinkedIn, while less visible in Microsoft’s earnings reports since the acquisition, continues to show significant growth. In Microsoft’s latest Q2 results, the platform revealed a 9% increase in revenue year-over-year, with CEO Satya Nadella announcing that LinkedIn’s Premium subscription revenue has surpassed a record $2 billion in the past 12 months.
With over 1 billion users, LinkedIn has not revealed its total revenue for the past 12 months, nor has it provided insights into the performance of its other business divisions. In March 2024, it was reported that the revenue from Premium subscriptions reached $1.7 billion over the past 12 months.
LinkedIn’s revenue is projected to be around $16.2 billion in 2024. After doing some quick calculations, it appears that Premium subscriptions account for approximately 12.5% of LinkedIn’s revenue. The significance of these numbers is clear, yet it’s worth noting that Microsoft’s newer ventures, particularly in AI, are experiencing rapid growth and could soon take center stage.
Nadella also highlighted that AI achieved a $13 billion annual revenue run rate this quarter, reflecting a remarkable 175% increase compared to the previous year. During the earnings call, LinkedIn indicated that it anticipates future revenue growth in the “low- to mid-single digits,” hindered by challenges in the Talent Solutions division.
However, the $2 billion figure marks a significant achievement for LinkedIn, highlighting the company’s efforts to integrate an increasing array of additional features into its paid tiers, aiming to entice more users to subscribe and invest. The company also revealed that the overall number has increased by approximately 50% over the past two years.
“Building a $2B revenue subscription business is something only a handful of digitally native companies in history have ever accomplished,” LinkedIn CEO Ryan Roslansky told in a statement. “We’re focused on designing and continuing to iterate on a model that is value-orientated to meet the needs of our subscribers — those who want to accelerate their career or grow their business. We bet big on our investment in AI tools to help our subscribers accelerate how they connect to opportunity, and it’s paying off.”
Since Microsoft’s acquisition of LinkedIn in 2016, the platform has been quite discerning about sharing its financial and user statistics, often highlighting positive news to balance out less favorable data. The reported $2 billion figure coincides with Microsoft’s Q2 earnings, which revealed a slowdown in growth within its cloud sector, leading to a decline in the company’s shares during after-hours trading.
The Premium subscription numbers encompass both Careers and Business tiers. LinkedIn has noted that its newly launched AI features, including AI-driven job hunting tools and professional development resources, have been well-received by Premium subscribers, with approximately 40% actively utilizing these tools.
