According to reports, LinkedIn’s premium subscription division brought in $1.7 billion in revenue in 2023.
The number of premium members on the professional social networking site increased by 25% in the same year, according to Reuters, which released the information based on an interview with LinkedIn Chief Operating Officer Dan Shapero on Thursday, March 7.
According to the research, LinkedIn, which Microsoft purchased in 2016, earned $15 billion in revenue in fiscal 2023, of which $7 billion came from its hiring tools for corporate recruiters.
According to the report, one reason for the significant increase in the company’s premium subscription service, which has a monthly starting price of $39.99, is the addition of members-only features like artificial intelligence (AI) tools designed to improve user experience and recruitment and job hunting efficacy.
For instance, according to the study, LinkedIn has added AI capabilities that may examine a job advertisement and a candidate’s resume to determine a possible match.
According to the paper, this AI also expands on its skills to improve user profiles to draw in recruiters and to automatically develop content to interest prospective employers.
Early data suggests that 70% of members having access to the new AI tools have tried them, and 90% of them found them useful. These features have swiftly gained popularity and become useful.
According to the report, these developments occur at a time when the labor market is tight, albeit not equally across all industries. According to the survey, professionals are driven to utilize all available resources to land desired roles, as seen by LinkedIn’s insights indicating that there are two candidates for each post.
LinkedIn stated that the new offering is intended to expedite what can be a drawn-out process, provide users with additional “key salient opportunities,” and provide timely information about global events when it announced the debut of its AI tools for premium subscribers in November.
During an earnings call in October, Microsoft Chairman and CEO Satya Nadella stated that the company’s paid services, such its premium subscriptions, helped to drive earnings growth. LinkedIn also reported an 8% gain in sales.