LinkedIn, the popular job-networking platform, has revealed that it generated $1.7 billion in revenue from its premium subscribers in 2023. This is the first time the company has disclosed this information since being acquired by Microsoft.
The increase in revenue was driven by a 25% rise in the number of premium subscribers, with many users taking advantage of LinkedIn’s AI tools. According to LinkedIn COO Dan Shapero, over 70% of premium users are utilizing AI tools for tasks such as writing posts and comments, as well as receiving profile recommendations.
Shapero also mentioned that early tests have shown that 90% of subscribers with access to LinkedIn’s AI-powered job experience find it useful. Microsoft, LinkedIn’s parent company, reported a 9% increase in revenue for the last quarter, with membership growth accelerating for over two years.
LinkedIn offers premium subscription plans such as “Premium Career” and “Premium Business” for $29.99 and $59.99 per month, respectively. Shapero hinted at more AI features being added to the platform in the future, as Microsoft continues to focus on rolling out AI tools to enhance user experience.
Despite its success, LinkedIn faced challenges last year, including laying off over 1,400 employees in two rounds of cuts. The company also experienced a leak of employee names on the anonymous workplace forum Blind, causing some staff to find out about layoffs before they were officially announced.
LinkedIn has not yet responded to requests for comment on these incidents. If you have insights to share about LinkedIn or work for the company, you can contact the reporter at jmann@businessinsider.com. Stay tuned for more updates on LinkedIn’s AI tools and future developments.