Revenue for Microsoft as a whole rose 12% year-over-year to $51.9 billion
According to Microsoft Corp., LinkedIn revenue rose 29% in constant currency in the fiscal fourth quarter ended June 30, up 26% on a reported basis to $768 million. However, LinkedIn’s growth was lower than expected as revenue from its marketing solutions advertising business was impacted by a slowdown in advertising spend according to CFO Amy Hood.
LinkedIn’s year-over-year revenue growth in the upcoming first quarter is not forecast to match the fourth quarter’s growth.
Hood made further comment: “For LinkedIn, we expect continued strong engagement on the platform, although results will be impacted by the slowdown in advertising spend and hiring, resulting in low to mid-teens rev growth.”
However, Microsoft Chairman and CEO Satya Nadella noted engagement on LinkedIn remains strong.
Nadella said: “We once again saw record engagement among the more than 850 million members, a testament to how mission-critical the platform is to connect job seekers with jobs, learners with skills and marketeers with buyers.”
Revenue for Microsoft as a whole rose 12% year-over-year to $51.9 billion. In constant currency, the increase was 16%.
CNBC reported revenue fell short of guidance and was the slowest revenue growth since 2020.
Microsoft also noted it had employee severance expenses of $113 million in the quarter, excluding Russia. Separately, the company had scaled down its operations in Russia and recorded operating expenses of $126 million related to bad debt expense, asset impairments and severance.