Microsoft has decided to add LinkedIn to its commercial cloud numbers, boosting the section’s already significant revenue. The social network’s Sales Navigator, Premium subscriptions, and Recruiter services will all make an appearance.
Microsoft released LinkedIn’s stats for the past four quarters after the September 20 change. The company’s commercial services had a revenue of $3.37 billion this financial year and a further $1.8 billion from its other products. That puts the total at $5.25 billion for the year.
It seems the final quarter of 2018 was LinkedIn’s best yet, reporting $1.46 billion. The lowest was Q1, at $1.14 billion. For Microsoft as a whole, it boosts the FY18 commercial revenue from $23.6 to $26.6 billion.
A Change in Strategy
The company says it’s making the change to give its investors a complete view of its performance. However, it does somewhat contradict the company’s tactic so far, which has been a very distanced approach.
When Microsoft bought LinkedIn in 2016, it assured users that the company would be largely independent. Other than a few integrations, the company was left largely to its own devices. As such, it made sense to separate it financially, but there’s really no ignoring that the company is part of Microsoft.
In that vein, LinkedIn revenue growth will also appear on reports. It will be available on previously disclosed earnings and going forward. Overall, the metrics should give investors clear insight into LinkedIn’s performance under Microsoft.