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.
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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.
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“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.
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