Company: AFRM
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001820953-25-000012
Chunk: 149

Company: Affirm Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 149
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 months ended December 31, 2024 but decreased by $8.1 million, or 7%, for the six months ended December 31, 2024 compared to the same periods in 2023, primarily due to an increase in headcount, offset by higher capitalized compensation costs related to internally-developed software.

Sales and marketing

Sales and marketing costs consist of the expense related to warrants and other share-based payments granted to our enterprise partners, salaries and personnel-related costs, costs of marketing and promotional activities.

69

Sales and marketing expense decreased by $25.2 million, or 16%, and $26.9 million, or 9%, during the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023. The decrease was primarily driven by a $27.9 million, or 24%, and $16.6 million, or 8%, decrease in Amazon warrant expense during the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023, primarily due to a portion of the warrants becoming fully vested in the current period. Additionally, amortization expense related to the Amazon commercial agreement decreased by $5.2 million, or 50%, and $10.4 million, or 50%, during the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023, primarily due to an amendment made in our partnership agreement, which extended the period of benefit over which we amortize the commercial agreement asset. The decrease was partially offset by a $6.2 million, or 144%, and $7.7 million, or 99%, increase in merchant and consumer marketing spend programs during the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023, associated with our expanded brand-activation, holiday shopping, lifestyle, and travel marketing. Partner profit-sharing expense increased by $3.4 million, or 348%, and $2.8 million, or 93%, during the three and six months ended December 31, 2024, respectively, compared to the same periods in 2023. Additionally, the amortization period related to one of our commercial agreements ended in the previous fiscal period, which resulted in a decrease in amortization expense of $2.1 million and $4.2 million during the three and six months ended December 31,