Sophie Blake
LinkedIn, the leading social network designed for business professionals, disclosed on Thursday the sales figures for its premium subscription business. The unit achieved an impressive $1.7 billion in revenue in 2023, signaling a significant surge in the adoption of new artificial intelligence (AI) tools within the platform.
Since its acquisition by Microsoft in 2016, LinkedIn had not previously divulged its full financial performance. Earlier disclosures had mentioned a total revenue of $15 billion in fiscal 2023, with $7 billion attributed to the sales of hiring software catering to corporate recruiters. However, this recent disclosure sheds light on the success of LinkedIn’s premium subscription business.
Over the past year, LinkedIn has actively worked on expanding its premium subscription services, which are utilized by job seekers and individual users, starting at a monthly fee of $39.99. A pivotal part of this expansion strategy involved integrating AI features. These features include the capability to scan job postings and, based on a job seeker’s resume, automatically assess if the individual is a suitable match. The AI system also assists job seekers in optimizing their LinkedIn profiles to increase attractiveness to recruiters and can generate written messages automatically for communication with recruiters.
Dan Shapero, the Chief Operating Officer of LinkedIn, shared in an interview that the number of premium subscribers witnessed a substantial 25% increase in 2023, although the specific numerical figure was not disclosed. Shapero further highlighted that early data indicated a noteworthy 70% of subscribers with access to the new AI tools actively engaged with them. Impressively, 90% of these users found the AI tools to be valuable.
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