Skip to main content

Market Overview

Microsoft's LinkedIn Outdoes Pinterest, Snapchat In Revenue: What You Need To Know

Share:
Microsoft's LinkedIn Outdoes Pinterest, Snapchat In Revenue: What You Need To Know

Technology giant Microsoft Corp (NASDAQ: MSFT) said on Tuesday its professional networking site LinkedIn raked in more than $3 billion revenue during the year ended March 31, which is more than digital-ad rivals like Snap Inc (NYSE: SNAP) and Pinterest Inc (NYSE: PINS).

What Happened: LinkedIn’s revenue surpassed the $3 billion milestone last year and is growing nearly three times faster than the B2B digital advertising market, CEO Satya Nadella told investors in a post-earnings call on Tuesday.

In comparison, rival Snap churned a revenue of $2.5 billion and Pinterest reported a revenue of $1.69 billion during the same period.

See Also: How To Buy Microsoft (MSFT) Stock

The professional networking platform LinkedIn registered a 25% rise in revenue in Q3 and Nadella said he expects LinkedIn’s revenue to grow in the mid-30% range helped by user engagement and improvements in the advertising and job markets in the next quarter.

The California-headquartered company said LinkedIn Marketing Solutions’ revenue was up 60% year-over-year — helped by record user engagement on its platform that currently has 756 million members. 

LMS is the company’s advertising business unit and offers sponsored content in its feed and messages. 

See Also: Microsoft Beats Q3 Earnings Estimates, Sees Azure Revenue Up 50%

“Conversations increased 43% and content shared was up 29%. And hours on LinkedIn Learning increased 80%,” Nadella said.

Why It Matters: LinkedIn likely got a boost last year as a number of advertisers paused their placements on Facebook Inc (NASDAQ: FB) and started looking for other options, CNBC noted earlier.

Microsoft reported $41.7 billion third-quarter revenue, which was up 19% year-over-year and beat Street estimates of $41 billion. LinkedIn’s revenue contribution is still small but growing fast as the war for clicks intensifies among social media players.

Twitter Inc (NYSE: TWTR) last week unveiled Professional Profiles, a feature that will allow users who use the app for their work to be able to display specific information about their business directly on their profile. 

Price Action: Shares of Microsoft closed o.16% higher at $261.97 on Tuesday and were trading 3% lower in after-hours trading.

Read Next: Why Pinterest Shares Tanked Despite Q1 Earnings Beat

 

Related Articles (MSFT)

View Comments and Join the Discussion!

Posted-In: ads Digital Advertisements LinkedIn SnapChat social mediaEarnings News Tech Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com