Altisource Announces Fourth Quarter and Full Year 2023 Financial Results

Company Performance - Altisource Portfolio Solutions reported a service revenue of $136.6 million for the full year 2023, with a loss before income taxes of $(52.3) million and a net loss attributable to Altisource of $(56.3) million [6][7] - The company improved its total Adjusted EBITDA by $15.7 million in 2023 compared to 2022, with margins in the Servicer and Real Estate segments increasing to 25% from 18% [3][4] - In the fourth quarter of 2023, service revenue was $32.2 million, with a net loss attributable to Altisource of $(13.2) million [7][8] Business Segments - Service revenue in the Servicer and Real Estate segment was only down 4%, while the Origination segment outperformed the market with an 11% decline compared to a 36% decline in industrywide residential origination volume [4][5] - Adjusted EBITDA in the Business Segments improved by $7.8 million (30%) to $34.2 million in 2023 compared to 2022 [4] - The company ended 2023 with a weighted average sales pipeline estimated between $43 million and $53 million [4] Industry Context - Industrywide mortgage origination volume decreased by 36% in 2023 compared to 2022, while foreclosure initiations were 4% lower than in 2022 [5] - The industrywide early-stage mortgage delinquencies increased by 15% in December 2023 compared to December 2022 [5] - The seriously delinquent mortgage rate decreased to 1.3% in December 2023 compared to 1.6% in December 2022 [5] 2024 Financial Guidance - For 2024, the company forecasts service revenue to be in the range of $155 million to $180 million, representing a growth of 13% to 32% compared to 2023 [2][10] - Adjusted EBITDA is anticipated to be in the range of $17.5 million to $22.5 million, driven by revenue growth and lower corporate costs [2][10]