Zoom Fails To Kick A Goal After Dodgy Numbers Revealed Shares Fall 7.8%
Big NRL sponsor Zoom has found itself in hot water overnight due to dodgy numbers resulting in their shares falling 7.8%.
The Chinese linked video streaming Company who sponsor South Sydney has backtracked on a claim that it had 300 million users and that they have grown 50% during the coronavirus epidemic.
It appears that Zoom PR people can’t tell the difference between a paid user and the amount of people on a call at any one time. What they have been counting as users is participants.
The video-conferencing platform made the embarrassing admission when they covertly tried to slip in an update to the market that their earlier blog this week was dodgy.
They have now corrected claims that they have grown 50 percent to 300 million amid the coronavirus outbreak.
In a clarification, Zoom said that instead of “300 million users,” it had actually meant to say “participants.” Whereas a user is an individual person using the platform who can only be counted once, a participant can take part in multiple meetings throughout the day and be counted several times.
“When we realized this error, we adjusted the wording to ‘participants,’” Zoom said in its correction. “This was a genuine oversight on our part.”
The Company appears to have been happy with their 50% claim until a journalist from The Verge actually challenged their claims. Fearing being exposed they decided to then quietly sneak in an amendment.
Last week’s announcement had sent Zoom’s stock soaring 12 percent. News of the reversal had the stock sinking over 7 percent.
Also contributing to the fall was a move by Google who announced it was making its Meet video-conference software for business free for all users.
Earlier this month the Company was banned by several big Companies as well as Government departments concerned over the use of China based servers