Zoom stock slips as company comes clean about misleading user count
According to a Zoom spokesperson, it was a genuine oversight on their part, unintentionally referring to participants as “users” and “people.” The mistake has since been rectified in the original blog post and a note was added to the bottom of the post that identifies the error and change.
Video conferencing app maker Zoom said in a blog post earlier this month that it now has more than 300 million daily users, an admission that helped push its stock value further north.
Shortly after the post, however, The Verge noticed that Zoom had quietly changed the wording in the blog to read “300 million daily Zoom meeting participants.”
The difference between a daily active user and a meeting participant may not sound like much but in fact, is quite significant. As the publication highlights, a daily meeting participant can be counted multiple times. For example, if you have four Zoom meetings in a single day, then you are counted four times. A daily active user, on the other hand, is counted just once per day no matter how many meetings they attend.
Share value in Zoom is down nearly 6.5 percent on the day, trading at $136.99.
Zoom has been getting the lion’s share of media attention in recent months but it’s not the only work from home tool to see substantial growth as of late. Microsoft Teams now has 75 million daily active users, a 70 percent increase in just one month, while Facebook just last week launched a new product called Messenger Rooms.