Altisource Portfolio Solutions S.A. (ASPS) Bundle
A Brief History of Altisource Portfolio Solutions S.A.
Company Background
Altisource Portfolio Solutions S.A. was founded in 2009 and is headquartered in Luxembourg. The company provides a suite of services to the real estate and mortgage industry, focusing on asset management, property management, and technology solutions.
Financial Performance Overview
As of September 30, 2024, Altisource reported a total service revenue of $111.9 million for the nine months ended, marking a 7% increase from $104.4 million in the same period for 2023. The gross profit for the same period was $37.1 million, which represents 33% of service revenue, compared to $21.2 million or 20% in the prior year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Service Revenue | $111.9 million | $104.4 million | +7% |
| Gross Profit | $37.1 million | $21.2 million | +75% |
| Net Loss | ($26.7 million) | ($43.1 million) | +38% |
Operational Segments
The company operates through two primary segments: Servicer and Real Estate, and Origination. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Service Revenue (2024) | Service Revenue (2023) | % Change |
|---|---|---|---|
| Servicer and Real Estate | $88.5 million | $81.6 million | +8% |
| Origination | $23.4 million | $22.8 million | +3% |
Cost Structure
For the nine months ended September 30, 2024, Altisource reported a total cost of revenue of $82.0 million, down 9% from $89.7 million in the previous year. The selling, general and administrative expenses decreased slightly to $34.5 million from $35.2 million.
Market Position and Future Outlook
Altisource continues to adapt to market conditions, driven by efficiency initiatives and an evolving service mix. The company is positioned to leverage its expertise in the real estate and mortgage sectors, targeting revenue growth as the market stabilizes.
| Future Financial Obligations | Total | 2024 | 2025-2026 | 2027-2029 |
|---|---|---|---|---|
| Senior Secured Term Loans | $235.7 million | $0 | $235.7 million | $0 |
| Revolving Loan Agreement | $0.25 million | $0 | $0.25 million | $0 |
| Interest Expense Payments | $13.3 million | $5.7 million | $7.6 million | $0 |
| Lease Payments | $2.9 million | $0.4 million | $2.3 million | $0.3 million |
A Who Owns Altisource Portfolio Solutions S.A. (ASPS)
Ownership Structure
As of September 30, 2024, the primary ownership structure of Altisource Portfolio Solutions S.A. (ASPS) is as follows:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | Approximately 72% | 21,000,000 |
| Management and Insiders | Approximately 12% | 3,600,000 |
| Retail Investors | Approximately 16% | 4,800,000 |
Key Shareholders
Notable shareholders as of September 30, 2024, include:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| Deer Park Road Management | 16% | 4,800,000 |
| Rithm Capital Corp. | 10% | 3,000,000 |
| BlackRock, Inc. | 8% | 2,400,000 |
| Vanguard Group, Inc. | 7% | 2,100,000 |
Management and Board of Directors
The management team and board members hold a significant portion of shares. Key figures include:
| Name | Position | Shares Owned |
|---|---|---|
| William Erbey | Executive Chairman | 1,200,000 |
| David McGowan | CEO | 800,000 |
| John D. H. Heller | Director | 600,000 |
Recent Share Issuance
In the first quarter of 2024, Altisource issued an additional 4,550 shares as part of its equity compensation plan, resulting in a total of 29,963 shares issued. The common stock is valued at $1.00 par value.
| Event | Shares Issued | Date |
|---|---|---|
| Equity Compensation | 4,550 | March 31, 2024 |
Financial Overview
For the nine months ended September 30, 2024, Altisource reported the following financial performance metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $119,121 |
| Net Loss | ($26,731) |
| Gross Profit | $37,091 |
| Loss Per Share (Basic) | ($0.94) |
Debt and Financial Obligations
As of September 30, 2024, Altisource's outstanding debt includes:
| Debt Type | Outstanding Amount (in millions) |
|---|---|
| Senior Secured Term Loans | $230.6 |
| Revolving Loan Agreement | $0.25 |
Altisource Portfolio Solutions S.A. (ASPS) Mission Statement
Mission Statement Overview
As of 2024, Altisource Portfolio Solutions S.A. aims to be a leading provider of services and technology solutions for the mortgage and real estate industries. The company focuses on delivering innovative solutions that enhance operational efficiency, improve customer experience, and drive profitability for its clients.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency in all dealings.
- Innovation: Continuously seeking new ways to improve services and technology offerings.
- Customer-Centricity: Prioritizing the needs and satisfaction of clients in every aspect of the business.
- Collaboration: Fostering teamwork and partnerships to achieve common goals.
Strategic Objectives
Altisource's strategic objectives include:
- Expanding service offerings to cover a broader range of real estate and mortgage solutions.
- Leveraging technology to enhance service delivery and operational efficiency.
- Building strong relationships with clients to ensure high levels of satisfaction and retention.
- Maintaining a robust financial position to support growth initiatives and investments.
Financial Performance
In the nine months ended September 30, 2024, Altisource reported:
| Description | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Revenue | $119,121 | $110,909 | 7% |
| Cost of Revenue | $82,030 | $89,684 | -9% |
| Gross Profit | $37,091 | $21,225 | 75% |
| Net Loss | $(26,731) | $(42,984) | 38% |
| Loss per Share (Basic) | $(0.94) | $(2.10) | 55% |
Market Positioning
Altisource is positioned as a key player in the mortgage and real estate sectors, focusing on:
- Providing comprehensive real estate services, including property management and valuation.
- Offering technology solutions that streamline mortgage processes and enhance customer engagement.
- Delivering exceptional service quality to build long-term partnerships with clients.
Future Outlook
Looking ahead, Altisource aims to:
- Increase market share through strategic acquisitions and partnerships.
- Innovate its technology platforms to meet evolving client needs.
- Enhance operational efficiencies to drive profitability.
How Altisource Portfolio Solutions S.A. (ASPS) Works
Company Overview
Altisource Portfolio Solutions S.A. (ASPS) operates as a provider of services and technology solutions for the real estate and mortgage industries. The company offers a variety of services, including property management, asset management, and technology solutions to facilitate real estate transactions.
Financial Performance
For the nine months ended September 30, 2024, Altisource reported a total revenue of $119.121 million, a 7% increase compared to $110.909 million for the same period in 2023. Service revenue accounted for $111.904 million in 2024, up from $104.356 million in 2023, reflecting growth in both the Servicer and Real Estate segments.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | % Change |
|---|---|---|---|
| Total Revenue | $119.121 million | $110.909 million | 7% |
| Service Revenue | $111.904 million | $104.356 million | 7% |
| Net Loss | ($26.731 million) | ($42.984 million) | 38% |
| Loss per Share | ($0.94) | ($2.10) | 55% |
Revenue Breakdown
In the third quarter of 2024, Altisource's total revenue reached $40.531 million, an increase of 12% from $36.213 million in Q3 2023. The breakdown of service revenue for the same period is as follows:
| Segment | Service Revenue (2024 Q3) | Service Revenue (2023 Q3) | % Change |
|---|---|---|---|
| Servicer and Real Estate | $30.389 million | $26.900 million | 13% |
| Origination | $7.761 million | $7.212 million | 8% |
Cost Structure
For the nine months ended September 30, 2024, Altisource incurred a cost of revenue totaling $82.030 million, compared to $89.684 million in 2023, resulting in a gross profit of $37.091 million for 2024, up from $21.225 million in 2023.
Operational Metrics
For the nine months ended September 30, 2024, the company reported the following operational metrics:
| Operational Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Gross Profit | $37.091 million | $21.225 million |
| Operating Expenses | $34.451 million | $35.169 million |
| Income (Loss) from Operations | $2.640 million | ($13.944 million) |
Debt and Interest Expenses
As of September 30, 2024, Altisource's long-term debt stood at $230.590 million. The interest expense for the nine months ended September 30, 2024, was $29.277 million, compared to $26.554 million for the same period in 2023.
Balance Sheet Highlights
As of September 30, 2024, Altisource reported total assets of approximately $144.503 million and total liabilities of $149.386 million. The company had a total deficit of $148.686 million.
| Balance Sheet Item | Amount (September 30, 2024) |
|---|---|
| Total Assets | $144.503 million |
| Total Liabilities | $149.386 million |
| Total Deficit | $148.686 million |
Liquidity and Cash Flow
For the nine months ended September 30, 2024, Altisource reported a net cash used in operating activities of $3.624 million, a significant improvement compared to $17.595 million in 2023. Cash, cash equivalents, and restricted cash at the end of the period totaled $31.226 million.
Stock Performance
As of September 30, 2024, Altisource had a weighted average of 28.672 million shares outstanding, with a basic loss per share of ($0.33), reflecting a 35% improvement compared to a loss of ($0.51) in the same quarter of 2023.
How Altisource Portfolio Solutions S.A. (ASPS) Makes Money
Revenue Streams
Altisource Portfolio Solutions S.A. generates revenue through various segments, primarily focusing on service revenue and reimbursable expenses. For the nine months ended September 30, 2024, Altisource reported:
| Revenue Category | Amount (in thousands) | Year-over-Year Change |
|---|---|---|
| Service Revenue | $111,904 | 7% |
| Reimbursable Expenses | $7,081 | 11% |
| Total Revenue | $119,121 | 7% |
Segment Performance
The company's revenue is derived from two main segments: Servicer and Real Estate, and Origination. The breakdown for the nine months ended September 30, 2024 is as follows:
| Segment | Service Revenue (in thousands) | Reimbursable Expenses (in thousands) | Total Revenue (in thousands) |
|---|---|---|---|
| Servicer and Real Estate | $88,495 | $6,680 | $95,175 |
| Origination | $23,409 | $401 | $23,946 |
| Total | $111,904 | $7,081 | $119,121 |
Key Clients and Contracts
Onity is a significant client, accounting for approximately 43% of total revenue for the nine months ended September 30, 2024. Revenue from Onity for the period was:
| Period | Revenue from Onity (in thousands) |
|---|---|
| Q3 2024 | $17,600 |
| Q3 2023 | $15,700 |
| Nine Months Ended September 30, 2024 | $52,600 |
| Nine Months Ended September 30, 2023 | $47,300 |
Cost Structure
For the nine months ended September 30, 2024, the total cost of revenue was $82,030, which reflects a 9% decrease from the previous year. The breakdown of costs is as follows:
| Cost Category | Amount (in thousands) | Year-over-Year Change |
|---|---|---|
| Outside Fees and Services | $44,301 | 3% |
| Compensation and Benefits | $16,569 | (4%) |
| Technology and Telecommunications | $5,200 | (5%) |
| Depreciation and Amortization | $247 | (62%) |
| Total Cost of Revenue | $82,030 | (9%) |
Profitability Metrics
For the nine months ended September 30, 2024, Altisource reported:
| Metric | Value |
|---|---|
| Gross Profit | $37,091 |
| Operating Income (Loss) | $2,640 |
| Net Loss | $(26,867) |
| Loss Per Share (Basic) | $(0.94) |
Market Trends and Outlook
Altisource's revenue is influenced by market conditions in the real estate and mortgage sectors. The company is focused on expanding its service offerings and optimizing its cost structure to improve profitability.
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Article updated on 8 Nov 2024
Resources:
- Altisource Portfolio Solutions S.A. (ASPS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Altisource Portfolio Solutions S.A. (ASPS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Altisource Portfolio Solutions S.A. (ASPS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.