LinkedIn’s contribution to Microsoft’s financial portfolio has become less noticeable recently, though the platform continues to grow. In its Q2 earnings report, Microsoft revealed that LinkedIn’s revenue grew 9% year-over-year. A key highlight was CEO Satya Nadella’s announcement that LinkedIn’s Premium subscription service reached $2 billion in revenue over the past year, setting a new record.
LinkedIn, which has surpassed 1 billion users across its free and Premium tiers, has not disclosed total revenue or the performance of individual business segments. However, analysts estimate LinkedIn’s total revenue for 2024 to be around $16.2 billion, with Premium subscriptions contributing roughly 12.5% of that total.
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While LinkedIn’s performance is strong, it is still overshadowed by Microsoft’s AI revenue, which saw a 175% year-over-year increase, reaching a $13 billion annual run rate this quarter. This stark contrast highlights the relative scale of AI operations compared to LinkedIn’s performance.
Despite these differences, LinkedIn’s $2 billion in Premium subscription revenue marks a significant milestone. The company has achieved a 50% growth over the past two years, largely driven by the expansion of its paid membership tiers. However, LinkedIn’s future outlook remains cautious, with expectations of moderate revenue growth due to challenges in its Talent Solutions division.
