LinkedIn has revealed its premium subscription business revenue for the first time, reaching an impressive $1.7 billion in 2023. This disclosure follows a surge in the adoption of new artificial intelligence (AI) tools within the platform.
Since its acquisition by Microsoft in 2016, LinkedIn had not provided a detailed breakdown of its financial performance. However, the company’s fiscal 2023 revenues amounted to $15 billion, with $7 billion attributed to hiring software catering to corporate recruiters.
Over the past year, LinkedIn focused on expanding its premium subscription business, starting at $39.99 per month and primarily utilized by job seekers and individual users. A significant aspect of this expansion involved the integration of AI features. These features allow users to scan job postings and, based on their resumes, automatically assess their compatibility with the position. Furthermore, the AI system assists job seekers in optimizing their LinkedIn profiles to attract recruiters and generates tailored messages for communication.
Dan Shapero, LinkedIn’s Chief Operating Officer, shared that premium subscribers increased by 25% in 2023, although the specific numerical figure was not disclosed. Shapero highlighted that early data indicates a noteworthy engagement with the new AI tools, with 70% of subscribers trying them, and 90% finding them beneficial.
Despite the challenging labor market in the US, LinkedIn’s data suggests a varied landscape across industries, revealing two applicants for every job. Shapero noted that amidst economic uncertainty, individuals are leveraging these AI tools to enhance their job prospects and pursue opportunities aligned with their aspirations
