Use of the online meeting application Zoom Video Communications Inc. (NASDAQ:ZM) has surged 50% in the last three weeks.
On April 21, more than 300 million people used Zoom’s flagship videoconferencing app, up from about 200 million users on April 1, Chief Executive Officer Eric Yuan said during a webinar focused on the company’s enhanced security measures.
"Clearly the Zoom platform is providing an incredibly valuable service to our beloved users during this challenging time," Yuan said. "We are thrilled and honored to continue to earn the trust of so many enterprises, hospitals, teachers and customers throughout the world."
Zoom’s shares rose about 5% to $150.25 U.S. in New York trading Wednesday. The stock has more than doubled so far this year. Before the COVID-19 pandemic, Zoom was focused on business communications and used by about 10 million people, mostly office workers. Now, a growing number of organizations and individuals are using it to stay connected during social distancing and shelter in place measures.
However, the San Jose, California-based company has been criticized for security flaws in its platform. Zoom responded by unveiling updated security measures for the latest version of its app, including the ability to report a user to Zoom and a boosted level of encryption. Like many of its peers, the company doesn’t offer end-to-end encryption, which is the highest standard of security available today.
