LinkedIn's Premium Subscriptions Generate $1.7 Billion in Revenue, Reveals New Disclosure
LinkedIn's premium subscription business generated $1.7 billion in revenue in 2023. The company has been actively expanding its premium subscription segment, targeting job seekers and individual users. The introduction of AI features, such as resume scanning and profile optimization, has contributed to the growth of the premium subscription business.
In a surprising move, LinkedIn has unveiled the sales figures for its premium subscription business, reporting a staggering $1.7 billion in revenue for 2023. This marks the first time the social network for professionals has disclosed the financial performance of its premium subscription unit since its acquisition by Microsoft in 2016. The disclosure comes as LinkedIn witnesses a surge in the adoption of its new artificial intelligence (AI) tools.
While LinkedIn had previously announced a total revenue of $15 billion for fiscal 2023, with $7 billion attributed to its hiring software for corporate recruiters, the breakdown of its premium subscription business remained undisclosed. However, the company has been actively expanding this segment over the past year, targeting job seekers and individual users with subscription plans starting at $39.99 per month.
A significant part of LinkedIn's efforts to enhance its premium subscription offering was the introduction of AI features last year. These features allow users to scan job postings and, based on their resumes, automatically determine if they are a good fit for the position. Additionally, the AI system assists job seekers in optimizing their LinkedIn profiles to attract recruiters and even generates pre-written messages to send to potential employers.
Dan Shapero, LinkedIn's Chief Operating Officer, revealed in an interview that the number of premium subscribers increased by 25% in 2023. However, the exact figure was not disclosed. Shapero also shared that early data indicates that 70% of subscribers with access to the new AI tools have utilised them, with 90% finding them useful. Despite the tight labor market in the United States, LinkedIn's data suggests that there are still two applicants for every job, although the job market dynamics vary across industries.
Shapero acknowledged the uncertain economic climate and the desire of individuals to secure the best possible job opportunities. "What we do know is that because of the uncertainty in the broader economy, there are people that are trying to make sure that they have the ability to get the best job that they can and that they're excited about," he stated.
LinkedIn's premium subscription business generated $1.7 billion in revenue in 2023.
The company has been actively expanding its premium subscription segment, targeting job seekers and individual users.
The introduction of AI features, such as resume scanning and profile optimization, has contributed to the growth of the premium subscription business.
Source: REUTERS