A Zoom videoconference on a laptop.
Vadym Pastukh/Dreamstime
As the world begins to reopen, we’re all using Zoom videoconferencing a little bit less. Or in some cases, a lot less.
J.P. Morgan analyst Sterling Auty on Friday took a close look at usage patterns for Zoom Video Communications (ticker: ZM) and other videoconferencing apps, and the most striking takeaway is how daily average usage has fallen off from a year ago.
For the fiscal second quarter ended in July, he reports in a research note, daily average users for Zoom were down by about a third from a year ago, to 44.3 million, from 49.3 million in the first quarter and a peak of 67.7 million in the July 2020 quarter. Auty attributes the falloff to a combination of economies opening up and students on summer vacations who have less need for the software.
Auty notes that Zoom continues to have a strong slice of the overall videoconferencing app market, with 38.4% of total downloads in the sector through Aug. 13, versus 39.8% for all of 2020. But he also notes that total Zoom app downloads are down 24.9% from a year ago.
Auty also points out that Microsoft Teams lost some share in the second quarter, with monthly active users now 15.4% of the market, down from 17% one quarter earlier, while Google Meet’s market share rose to 26.5%, from 22.8%. On that basis, Zoom’s share of the market in the quarter was 38.1%, down from 39.2%.
“Zoom still remains the dominant platform of choice, but we do note an improving trend for Google Meet that has benefited over the last couple of months following some upgrades in its product,” Auty writes. “Now we would caution investors about trying to make direct correlations around Zoom revenue as it is too difficult to determine how many users have reduced activity enough to move either to a free offering or cancel some seats within an account.”
Zoom shares are up 2.2%, at $339.53, in recent trading. The company will report July-quarter results on Sept. 1.
Write to Eric J. Savitz at [email protected]
