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LinkedIn revenue up 8% on growth in Talent Solutions segment, more growth forecast for next quarter

October 25, 2023

LinkedIn revenue rose 8% year over year in constant currency in its fiscal first quarter ended Sept. 30, according to Microsoft Corp.’s earnings report on Tuesday. Revenue was $285 million, driven primarily by the Talent Solutions segment — which includes tools to find job candidates.

“Results exceeded expectations, and we saw share gains again this quarter across many businesses as customers adopt our innovative solutions to transform their businesses,” Microsoft CFO Amy Hood said in a conference call with analysts.  

However, Microsoft reported LinkedIn continued to see negative year-over-year bookings from the weaker hiring environment in key verticals.

Microsoft CEO Satya Nadella noted LinkedIn membership growth has accelerated each quarter for over two years in a row. “More broadly, we continue to see record engagement and knowledge sharing on the platform.”

For the second fiscal quarter, Microsoft said it expects LinkedIn revenue growth to be in the mid-single digits, driven by Talent Solutions and Marketing Solutions, even as growth continues to be impacted by the overall market environments for recruiting and advertising.

Total revenue at Microsoft grew 13% to $56.52 billion in the fiscal first quarter. The increase was 12% in constant currency.

LinkedIn, which ranks as the world’s second-largest job advertising firm, is laying off approximately 668 people across its engineering, product, talent and finance teams. The professional networking and jobs website announced the workforce reductions Oct. 16.