LinkedIn the premier social network targeting business professionals, has revealed the sales figures for its premium subscription business for the first time, reporting revenue of $1.7 billion in 2023.
LinkedIn had not previously provided a breakdown of its financial performance since its acquisition by Microsoft in 2016. The company’s overall fiscal performance for 2023 was previously disclosed at $15 billion, with $7 billion attributed to its hiring software sold to corporate recruiters.
However, in recent years, LinkedIn has been expanding its premium subscription business, catering to job seekers and individual users, with subscription plans starting at $39.99 per month.
A key driver of this expansion has been the integration of artificial intelligence (AI) features, introduced last year. These features include the ability to analyse job postings and match them with job seekers’ resumes automatically, thereby assisting users in optimising their profiles and engaging with recruiters more effectively.
LinkedIn’s Chief Operating Officer, Dan Shapero, has spoken on the positive reception of these AI tools, noting that 70% of subscribers who have access have tried the tools, with 90% finding them useful. This indicates a strong demand for innovative solutions amid ongoing labour market challenges, with LinkedIn’s data revealing a ratio of two applicants for every job vacancy.
Shapero stressed the importance of providing users with tools to secure desirable employment opportunities amidst economic uncertainty. He noted that while the labour market remains competitive, individuals are actively seeking avenues to enhance their job prospects and pursue fulfilling careers.
Source: Reuters
