Altisource Portfolio Solutions S.A.(ASPS) - 2022 Q2 - Earnings Call Presentation

Financial Performance - Altisource's Q2 2022 service revenue was $376 million, a 14% decrease compared to Q2 2021's $440 million[21] - The company's loss from operations in Q2 2022 was $105 million, a 28% improvement from the $146 million loss in Q2 2021[21] - Adjusted EBITDA for Q2 2022 was a loss of $66 million, a 2% improvement compared to the $67 million loss in Q2 2021[21] - Altisource ended Q2 2022 with $71 million in cash and cash equivalents[6] Segment Performance - Servicer and Real Estate segment revenue grew by 8% in Q2 2022 compared to Q1 2022[8] - Servicer and Real Estate segment Adjusted EBITDA grew by 10% in Q2 2022 compared to Q1 2022[10] - The average weighted sales pipeline in the Origination business grew to $32 million, a 54% increase since last quarter[6, 16] Market Trends and Outlook - Industry-wide origination volume is projected to decline 41% in 2022 compared to 2021[16] - U S foreclosure initiations increased 451% in the first half of 2022 compared to the first half of 2021, but were still 42% below the same pre-pandemic period in 2019[15] - Altisource anticipates REO inventory to reach stabilized levels in mid-2023[15] - The company estimates that for every 1% increase in the 30+ day delinquency rate, the addressable market for its default-related services increases by approximately $700 million[15]