Afterpay’s marketing and staff expenses surged over the year and losses from bad debts were higher as it took on new and riskier customers as it expands globally, depressing earnings as it prepares to merge into Square.

Afterpay reiterated the strategic rationale for the mega-merger announced just over three weeks ago, helping Square to attract new sellers by using the buy now, pay later product as a customer acquisition tool to deliver higher conversion rates and order basket sizes. Afterpay said its US users will benefit from the broader set of products provided by Square’s Cash App, including stock brokerage and bitcoin.