Microsoft's earnings report revealed that LinkedIn's revenue grew by 9% over the past year. Additionally, Microsoft CEO Satya Nadella announced that LinkedIn generated $2 billion in revenue from premium subscriptions over the past 12 months.
LinkedIn currently has over 1 billion users, but it does not disclose its total revenue or the earnings of its other business sectors. In March 2024, LinkedIn reported $1.7 billion in revenue from premium subscriptions. With an estimated total revenue of $16.2 billion, around 12.5% of LinkedIn's revenue is believed to come from premium subscriptions.
Microsoft's newer business areas, such as artificial intelligence (AI), are growing more rapidly. AI generated $13 billion in annual revenue, a 175% increase from the previous year. LinkedIn has indicated that future revenue growth will be "low to mid-single digits," though challenges in the Talent Solutions sector may slow this growth.
To attract more users and encourage payments, LinkedIn continues to add features to its premium plans. Over the past two years, premium subscription revenue has increased by approximately 50%.
LinkedIn CEO Ryan Roslansky stated, "Building a $2 billion subscription business is something only a few digital companies in history have managed." The company is investing in AI tools to help subscribers connect with opportunities more quickly and efficiently.
Microsoft acquired LinkedIn in 2016 and has since refrained from disclosing extensive financial and user data about the platform. However, the $2 billion revenue figure comes amid reports of slowing growth in Microsoft's cloud business, which has led to a decline in the company's stock value.
