Altisource Portfolio Solutions S.A.(ASPS) - 2024 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2024 was $39,469,000, slightly up from $39,461,000 in Q1 2023, indicating a growth of 0.02% year-over-year[14] - Gross profit increased to $12,304,000 in Q1 2024 from $8,504,000 in Q1 2023, representing a significant increase of 44.5%[14] - Net loss attributable to Altisource for Q1 2024 was $9,198,000, an improvement compared to a net loss of $12,947,000 in Q1 2023, reflecting a reduction of 29.1%[14] - Basic and diluted loss per share for Q1 2024 was $(0.33), compared to $(0.70) in Q1 2023, showing a 52.9% improvement[14] - Service revenue decreased to $36.891 million in Q1 2024 from $37.071 million in Q1 2023, a decline of approximately 0.5%[109] - Cost of revenue for Q1 2024 was $27.165 million, a decrease of 12.5% compared to $30.957 million in Q1 2023[118] - Selling, general and administrative expenses increased to $12.852 million in Q1 2024 from $12.094 million in Q1 2023, reflecting a rise of approximately 6.3%[123] - The company recognized $1.3 million in revenue from contract liabilities at the beginning of the period for Q1 2024, down from $1.9 million in Q1 2023[116] - The company recognized $0.1 million in service revenue from Aldridge Pite for Q1 2024, compared to less than $0.1 million in Q1 2023[115] Assets and Liabilities - Total assets decreased to $148,868,000 as of March 31, 2024, down from $154,858,000 as of December 31, 2023, a decline of 3.9%[10] - Total liabilities decreased to $148,868,000 as of March 31, 2024, down from $154,858,000 as of December 31, 2023, also a decline of 3.9%[10] - Cash and cash equivalents decreased to $29,599,000 as of March 31, 2024, from $32,522,000 as of December 31, 2023, a decrease of 9.0%[10] - Long-term debt increased to $219,266,000 as of March 31, 2024, up from $215,615,000 as of December 31, 2023, an increase of 1.5%[10] - Total accounts payable decreased to $13,419,000 as of March 31, 2024, from $15,275,000 as of December 31, 2023, a reduction of 12.1%[59] - Total other assets slightly decreased to $6,675,000 as of March 31, 2024, from $6,730,000 as of December 31, 2023, a decline of 0.8%[57] Revenue Sources - Revenue from Ocwen Financial Corporation accounted for 45% of total revenue, with recognized revenue of $17.7 million for Q1 2024, slightly up from $17.6 million in Q1 2023[32][33] - Ocwen was the largest customer, accounting for 45% of total revenue in Q1 2024[134] - For the three months ended March 31, 2024, Ocwen accounted for 45% of Altisource's total revenue, with an additional 7% earned from loan portfolios serviced by Ocwen[176] - The Origination segment generated $7.8 million in service revenue, reflecting growth driven by newer reseller products and an increase in mortgage originations[187] Cash Flow and Expenses - Cash flows from operating activities resulted in a net cash used of $2.237 million, an improvement from $3.058 million in the prior year[21] - Total cash, cash equivalents, and restricted cash at the end of the period was $32.480 million, down from $46.328 million a year earlier[21] - The company reported a significant increase in share-based compensation expense, rising to $2.213 million from $1.445 million in the previous year[21] - Interest expense increased by 41% to $(9.5) million in Q1 2024 from $(6.8) million in Q1 2023, primarily due to higher interest rates[196] Strategic Initiatives and Risks - The company is evaluating the impact of new accounting standards on its consolidated financial statements, effective after December 15, 2023[30][31] - Management highlighted risks related to retaining key customers like Ocwen and Rithm, which could impact future revenue and operational stability[157] - The company is focused on growing referrals from existing customers and attracting new customers to its offerings, particularly in the Servicer and Real Estate segment, which includes government-sponsored enterprises and large servicers[169] - Altisource aims to diversify its revenue and customer base through strategic initiatives and by developing new offerings within its Origination segment, which serves mortgage loan originators[170] Shareholder Information - The company has approximately 3.1 million shares available for repurchase under the share repurchase program as of March 31, 2024[92] - Altisource's share repurchase program allows for the purchase of up to 3.1 million shares at a minimum price of $1.00 and a maximum price of $25.00 per share, with approximately $115 million available for repurchase under Luxembourg law as of March 31, 2024[175]