- Zoom shares dropped after the company walked back on claims it has 300 million daily active users.
- Zoom initially reported April 22 that it saw a 50% surge in daily users, though later updated its statement to say it had 300 million daily meeting participants.
- The difference between daily active users and participants is that meeting participants can be counted more than once.
Zoom shares dropped as much as 8.7% on Thursday after the company walked back claims it has 300 million daily active users.
Zoom reported on April 22 that it saw a 50% surge in daily users, though it later updated its statement to say it had 300 million daily meeting participants. The difference between daily active users and participants is that meeting the latter can be counted more than once. Daily active users is a key metric for companies to report platform usage. Zoom declined to provide an updated daily active user count.
The Verge previously reported the change in language.
"We are humbled and proud to help over 300 million daily meeting participants stay connected during this pandemic. 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," a Zoom spokesperson said in an emailed statement.
Zoom also joined the Nasdaq 100 on Thursday.
Videoconferencing companies have seen a significant growth in users since the Covid-19 pandemic has shifted many people to online work. Zoom stock has surged this year as it emerged as a dominant player during the pandemic, though Facebook and Google recently announced new measures to compete with the company. Microsoft also showed strong growth in Teams, its workplace chatting and video conferencing app, when it reported earnings Wednesday. Microsoft said Teams now has 75 million daily active users.
Disclosure: CNBC parent NBCUniversal is an investor in The Verge's parent Vox Media.
Correction: This story has been updated to reflect Zoom reported its surge in users on April 22.