Zoom Shares Fall as It Pulls Back Claim of 300 Million Daily Active Users

Zoom says its blog post should have read 300 million meeting *participants* and was an unintentional mistake.
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Shares of Zoom Video Communications  (ZM) - Get Report fell Thursday after the videoconferencing darling pulled back on claims that it has 300 million daily active users. 

The Verge discovered that Zoom quietly edited a blog post from earlier this month that made the claim. Zoom shares recently traded at $137.18, down 6.35%, but have soared 87% over the last three months.

The original post said Zoom had “more than 300 million daily users” and that “more than 300 million people around the world are using Zoom during this challenging time,” referring to the coronavirus pandemic, The Verge reported.

Zoom got rid of that text and now says it has “300 million daily Zoom meeting participants.” The distinction between a daily active user (DAU) and “meeting participant” is quite important, The Verge points out.

Daily meeting participants can be counted multiple times. But companies count DAUs once per day, and that is the metric commonly used to measure service usage. So the meeting participant metric, used by itself, could exaggerate usage of the platform.

Zoom edited the misleading section of the blog April 24, after many news outlets reported the original claim. And it added a note to the blog post announcing the error on Wednesday.

It also provided a statement of explanation.

“We are humbled and proud to help over 300 million daily meeting participants stay connected during this pandemic,” Zoom said. “In a blog post on April 22, we unintentionally referred to these participants as ‘users’ and ‘people.’ When we realized this error, we adjusted the wording to ‘participants.’ This was a genuine oversight on our part.”