DAU counts unique users active on a given day. The definition of 'active' matters more than the count itself: 'opened the app' produces inflated numbers, while 'completed the core action' produces a more honest signal.
DAU is most useful for products designed to be used daily, communication, social, productivity. For products with a weekly or monthly cadence (HR tools, finance software), DAU is the wrong frame and WAU or MAU is more meaningful.