Microsoft adds ‘commercial’ LinkedIn revenue to ‘Commercial Cloud

Microsoft acquired LinkedIn in 2016 for 26.2 billion dollars. Since then, it has published the turnover of the platform separately from the rest of the turnover that the company generates. From now on, however, the “commercial figures” of the platform will be placed under Commercial Cloud, with the rest of the company’s figures.

After the takeover LinkedIn had to continue to exist as an independent part under the wing of Microsoft. As a result, there have been few integrations with other services of the company. It is therefore likely that the platform was not added to Microsoft’s quarterly figures for that reason.

The “commercial figures” of LinkedIn consist of LinkedIn Recruiter, Sales Navigator, Premium business subscriptions and other services aimed at organizations. Marketing services and subscriptions for individual users are not included here, says ZDNet.

Commercial sales in the first quarter of this year amounted to $758, according to the new figures. In the fourth quarter of the fiscal year that ran between 1 July 2017 and 30 June 2018, the figure was 927 dollars. Together with the “other turnover” from LinkedIn, the turnover for the whole year amounted to 2,259 dollars.

Commercial Cloud

Commercial Cloud is a collection of Microsoft’s cloud services. These include Azure, Office 365 business services, Dynamics 365 and the Enterprise Mobility and Security Suite (EMS). On-premise products are not included.

Microsoft said in 2015 that it expected the Commercial Cloud to achieve an annual turnover of 20 billion U.S. dollars. That prediction has now been achieved. In the fiscal year 2018, the turnover was 23.2 billion dollars, without the turnover of LinkedIn. Now that the platform has also been added to the Commercial Cloud, the turnover amounts to 26.6 billion dollars. The majority of LinkedIn’s turnover comes from vacancies, personal development through courses and marketing solutions such as advertisements.