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    Innovation Village | Technology, Product Reviews, Business
    You are at:Home»Business»LinkedIn achieves $2 billion in premium subscription revenue amidst Microsoft’s Q2 earnings report
    LinkedIn

    LinkedIn achieves $2 billion in premium subscription revenue amidst Microsoft’s Q2 earnings report

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    By Tapiwa Matthew Mutisi on January 30, 2025 Business, Financial report, Microsoft, News, Social Media

    LinkedIn, the prominent social networking platform dedicated to professional networking and job-related discussions, has seen its visibility within Microsoft’s earnings reports diminish since its acquisition. This is in contrast to the more pronounced financial disclosures it provided as an independent entity. Nevertheless, during earnings announcements, LinkedIn frequently shares key metrics that highlight its ongoing growth trajectory.

    On Wednesday, coinciding with Microsoft’s release of its Q2 financial results, the company announced that LinkedIn’s revenue had experienced a 9% increase over the past year. Furthermore, Microsoft CEO Satya Nadella emphasized during the earnings call that LinkedIn achieved a significant milestone, surpassing $2 billion in revenue from Premium subscriptions over the last 12 months.

    With a user base exceeding 1 billion individuals, encompassing both Premium and free accounts, LinkedIn has opted not to disclose its total revenue for the past year or the performance of its various business segments. However, some contextual figures are available:

    In March 2024, LinkedIn reported that its Premium subscriptions revenue stood at $1.7 billion for the preceding 12 months. Projections suggest that LinkedIn’s total revenue for 2024 could be approximately $16.2 billion. This rough calculation indicates that Premium subscriptions account for around 12.5% of LinkedIn’s overall revenue.

    While these figures are noteworthy, they are overshadowed by the rapid growth of Microsoft’s newer business ventures, particularly in artificial intelligence (AI). During the same earnings call, Nadella revealed that Microsoft’s AI segment achieved an impressive annual revenue run rate of $13 billion this quarter, reflecting a staggering 175% increase compared to the previous year. LinkedIn, on the other hand, indicated that it anticipates future revenue growth in the “low- to mid-single digits,” primarily due to challenges faced in its Talent Solutions division.

    Despite these challenges, the achievement of reaching $2 billion in Premium subscription revenue is a significant milestone for LinkedIn. It underscores the company’s strategic efforts to enhance its paid offerings by integrating a growing array of features designed to attract and retain subscribers. According to LinkedIn, the number of Premium subscribers has surged by approximately 50% over the past two years.

     LinkedIn CEO Ryan Roslansky highlighted in a statement;

    Building a $2 billion revenue subscription business is something only a handful of digitally native companies in history have ever accomplished. We’re focused on designing and continuing to iterate on a model that is value-oriented 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 connect to opportunities more effectively, and it’s paying off.

    Since its acquisition by Microsoft in 2016, LinkedIn has been somewhat selective in disclosing its financial and user metrics, often highlighting positive developments to counterbalance less favorable figures. The announcement of reaching $2 billion in Premium subscription revenue coincided with Microsoft’s Q2 earnings report, which revealed a slowdown in growth within its cloud business—a development that negatively impacted the company’s stock price in after-hours trading.

    The reported $2 billion in Premium subscription revenue encompasses both the Careers and Business tiers. LinkedIn has noted that the new AI-driven features it has been rolling out—such as AI-enhanced job search tools and professional development resources—have been well-received, with approximately 40% of Premium subscribers actively utilizing these innovations.

    LinkedIn introduces its first AI agent to assist job recruiters

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    Tapiwa Matthew Mutisi
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    Tapiwa Matthew Mutisi has been covering blockchain technology, intelligent technologies, cryptocurrency, cybersecurity, telecommunications technology, sustainability, autonomous vehicles, and other topics for Innovation Village since 2017. In the years since, he has published over 4,000 articles — a mix of breaking news, reviews, helpful how-tos, industry analysis, and more. | Open DM on Twitter @TapiwaMutisi

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