The cloud and video games are not the only divisions that are bringing joy to Microsoft. Azure, Dynamics 365 and Xbox have continued to be the products that have grown the most during the last fiscal quarter in the company founded by Bill Gates and Paul Allen, from January to March 2021, but a fourth in the form of a social network has been added to these three major legs of profitability: LinkedIn.
The social platform for professionals has been the fourth business that has grown the most in the last fiscal quarter at Microsoft, 23% more than the same period of the previous year, only behind Azure (46% more), Dynamics 365 (a 40% more) and Xbox (32% more), according to data from the latest balance sheet of the Redmond, Washington-based company. This makes LinkedIn’s revenue growth outpaced Microsoft Office 365 for the second consecutive quarter, which increased their profits by 19%.
Regarding monetary figures, the Windows developer states that LinkedIn revenue exceeded $ 3 billion in fiscal year which ended on March 31st. Still modest figures, although they do not stop growing, in a company that last fiscal year had a turnover of more than 142,000 million dollars.
But, beyond the benefits it may have for Microsoft’s global business, the interesting thing about these figures is that they allow the social network for professionals to outperform competitors such as Snap and Pinterest in revenue in 2020 – 2,800 and 1,900 million dollars respectively. – and get closer to Twitter -3.7 billion dollars-, although it is still light years from Facebook – almost 86,000 million – and a considerable distance from Tik Tok -17,000 million.
LinkedIn vs. Kitty Videos
The increasing weight of LinkedIn in Microsoft’s billing is due to several factors. The main one is that the Redmond They have been trying for several years to position it as the best option for B2B advertising (business-to-business, that is, from professionals to professionals) with the launch of new tools for sales teams and campaigns as aggressive as the one presented last March under the slogan Do Business Where Business Is Done where they do business).
In this campaign, LinkedIn claimed that It is not productive to do business advertising aimed at professionals on platforms dedicated to entertainment, in which that publication will be surrounded by viral videos and funny pets. A veiled attack on Instagram, Facebook, or Tik Tok that appears to be working.
In addition, LinkedIn has also changed the design of its interface and has introduced elements such as stories to try to make the platform more attractive to users.
And, on the other hand, a factor that may have favored its growth is the loss of popularity of platforms such as Facebook for large advertisers. It should be remembered that Marck Zuckerberg’s social network suffered a boycott in June 2020 by several companies, such as Starbucks, Patagonia or The North Face, for which they withdrew their advertising investment in response to the decision of the white bosses not to do anything about the messages that incited hatred of Donald Trump and his supporters.