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MongoDB Warns It May Soon Dilute Shareholders

Tech firm considers issuing employees additional equity following share price plunge.

September 7, 2022

With shares cut in half over the last year MongoDB Inc. (MDB), a database platform, is considering issuing additional shares to retain employees by topping off their underwater equity awards. In its latest quarterly filing, MongoDB inserted new language warning shareholders of the repercussions:

“In response to competition, rising inflation rates and labor shortages, we may need to adjust employee compensation, which could affect our operating costs and margins, as well as potentially cause dilution to existing stockholders.”

In the six months ended July 31, 2022, MongoDB’s stock based compensation grew 65.8% while sales grew 54.7%.

The company joins other tech firms like Snowflake (SNOW), Shopify (SHOP), Workday (WORK), and Zoom (ZM) in considering issuing employees additional equity or increasing the cash component of their compensation.

Related: CLDR, BASE, POND, ORCL, CSCO, IBM, MSFT, AMZN, GOOGL,

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