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LinkedIn Premium Revenue Hits $2 Billion, Contributing 12.5% to $16.2 Billion Total Earnings

LinkedIn Premium Revenue Hits $2 Billion, Contributing 12.5% to $16.2 Billion Total Earnings

Source: 3D/Pixabay

LinkedIn generated over $2 billion in revenue from its Premium subscriptions over the past 12 months. 

As confirmed by Microsoft CEO Satya Nadella during the company’s Q2 earnings report on Wednesday, overall, LinkedIn’s revenue grew by 9% year-on-year, steadily expanding though there were challenges in some of its business segments.

The professional networking platform, which has over a billion users, has not disclosed its total revenue for the period or the specific performance of its other business divisions. 

However, past figures reveal some perspective—by March 2024, LinkedIn’s Premium subscriptions had brought in $1.7 billion, and estimates show that its total revenue for 2024 reached approximately $16.2 billion. This implies Premium subscriptions account for around 12.5% of LinkedIn’s overall earnings.

Nonetheless, LinkedIn has to compete within Microsoft’s portfolio, particularly with artificial intelligence (AI) services. Nadella highlighted in his comments that AI contributed $13 billion in annual revenue this quarter alone, a 175% increase from the previous year. 

LinkedIn has also warned that its revenue growth could slow in the coming months due to challenges in its Talent Solutions division, which provides recruitment-related services.

Even at that, the company is positive about the future of its Premium offerings. LinkedIn has been enhancing its paid tiers with additional features, including AI-driven job search tools and career development assistance. 

These initiatives appear to be resonating with subscribers, as nearly 40% of Premium users are actively engaging with the platform’s AI capabilities.

Speaking on LinkedIn’s success in growing its subscription business, CEO Ryan Roslansky said, “Building a $2B 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-orientated to meet the needs of our subscribers—those who want to accelerate their career or grow their business.”

While Microsoft’s overall earnings report revealed a slowdown in its cloud business, LinkedIn’s Premium revenue growth reveals its strategy of integrating AI-powered tools and exclusive features into its paid tiers is proving effective. 

However, with growth projections in the “low- to mid-single digits” for the near future, the company will need to continue enhancing its services to sustain growth.

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Tags: AILinkedInLinkedIn Premium RevenueLinkedIn RevenueMicrosoftRyan RoslanskySatya Nadella
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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