LinkedIn and Search thrive in Microsoft's Q3 FY24 Earnings

LinkedIn and Search thrive in Microsoft's Q3 FY24 Earnings
Satya Nadella

Microsoft's third-quarter earnings report for fiscal year 2024 painted a positive picture for both LinkedIn and Search and News Advertising. While the overall company reported strong growth across all segments, these two areas deserve a closer look for marketers.

LinkedIn, the professional networking platform acquired by Microsoft in 2016, continued its upward trend with a 10% year-over-year revenue increase (9% in constant currency). This growth was driven by strength in both its Premium Subscriptions and Talent Solutions businesses. Notably, revenue from LinkedIn Premium Subscriptions surged by an impressive 29% year-over-year. This suggests a growing user base finding value in the additional features offered by the premium tier.

Microsoft attributes a key driver of LinkedIn's growth to its continued investment in artificial intelligence (AI). Features like AI-powered collaborative articles, which have reached over 12 million contributions, and AI-assisted messages, boasting a 40% higher acceptance rate, are fostering user engagement. These AI-powered features are streamlining communication and fostering a more dynamic platform for professionals.

Microsoft remains optimistic about LinkedIn's future. The company expects revenue growth in the mid to high single digits, indicating continued expansion for the platform. The ongoing integration of AI into its offerings is likely to be a key factor in LinkedIn's sustained success.

Search and News Advertising holds steady

Microsoft's Search and News Advertising segment also delivered positive results, experiencing a respectable 12% year-over-year growth excluding traffic acquisition costs. This indicates that Microsoft is holding its own in the competitive online advertising landscape. Search remains a crucial touchpoint for consumers, and Microsoft's continued focus on this area ensures its advertising platform stays relevant.

Key Takeaways for Marketers

  • LinkedIn's growth underscores the importance of professional networking. As the platform evolves with AI-powered features, marketers can leverage LinkedIn to target and connect with a highly engaged professional audience.
  • Search advertising remains a powerful tool. Microsoft's Search and News Advertising growth indicates the continued effectiveness of search engine marketing. Marketers should consider incorporating search advertising strategies into their overall marketing mix.

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