Hiring slowdown could impact future results
Microsoft Corp. has reported that LinkedIn revenue rose 17% to $3.66 billion in the company’s fiscal first quarter ended Sept. 30. The increase as measured in constant currency was 21%. The increase was driven by LinkedIn’s talent solutions recruiting business.
However, Microsoft warned of a hiring slowdown impacting LinkedIn when announcing upcoming guidance.
Amy Hood, Microsoft CFO commented: “For LinkedIn, we expect continued strong engagement on the platform, although results will be impacted by a slowdown in advertising spend and hiring resulting in mid-to- high-single-digits revenue growth or low to mid-teens growth in constant currency.”
Still, the company reported high levels of engagement on LinkedIn.
Satya Nadella, Microsoft CEO said: “We once again saw record engagement among our more than 875 million members, with international growth increasing at nearly two times the pace as in the Unites States, in the first-quarter conference call with analysts.”
Nadella also noted there are more than 150 million subscriptions to newsletters on LinkedIn, a four-fold increase year over year.
In addition, Microsoft’s acquisition of EduBrite will allow workers to earn professional certificates directly on LinkedIn, the company announced.
Overall, total revenue at Microsoft was $50.1 billion in its fiscal first quarter, up 11% year over year — an increase of 16% in constant currency.