Company: RSKD
Filing Date: 2025-03-06
Form Type: 20-F
Source: 0001851112-25-000006
Chunk: 103

Company: RISKIFIED LTD.
Filing Date: 2025-03-06
Form: 20-F
Item: Item 5
Chunk 103
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 not recur in 2024, partially offset by new merchants onboarded to our platform and the merchant mix of our revenues.

Operating Expenses

Research and Development

                                Year Ended December 31,                                                                             
                                2024                                     2023                  $ Change                   % Change  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                (dollars in thousands)                                                                              
  Research and development      $                            68,065      $         71,577      $             (3,512)      (5)       

The decrease in research and development expenses of $3.5 million was primarily attributable to a decrease of $4.1 million in payroll and related costs including a decrease of $0.1 million in share-based compensation expense, a decrease of $0.4 million in overhead costs, and a decrease of $0.3 million in professional services fees all primarily driven by reductions in headcount and efforts to effectively reduce our operating expenses. These decreases were partially offset by an increase of $1.3 million in hosting fees and software costs.

Sales and Marketing

                           Year Ended December 31,                                                                             
                           2024                                     2023                  $ Change                   % Change  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                           (dollars in thousands)                                                                              
  Sales and marketing      $                            86,389      $         88,441      $             (2,052)      (2)       

The decrease in sales and marketing expenses of $2.1 million was primarily attributable to a decrease of $3.8 million in payroll and related costs including a $0.9 million decrease in share-based compensation driven by reductions in headcount and equity awards containing performance and service-based vesting conditions. There was also a decrease of $0.5 million in overhead costs and a decrease of $0.4 million in marketing costs.

These decreases were partially offset by a $2.6 million increase in sales commissions expense inclusive of a $1.0 million impairment of capitalized sales commissions.

General and Administrative

                                  Year Ended December 31,                                                                             
                                  2024                                     2023                  $ Change                   % Change  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                  (dollars in thousands)                                                                              
  General and administrative      $                            64,337      $         69,350      $             (5