Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Q3 2024 Earnings Presentation
31 slides from Altisource Portfolio Solutions's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Supplementary Information
ALTISOURCE THIRD QUARTER 2024 SUPPLEMENTARY INFORMATION OCTOBER 24, 2024
Slide 2: Disclaimer
DIS CLAIMER This presentation contains forward-looking statements that involve a number of risks pandemic, customer concentration, the timing of the anticipated increase in default and uncertainties. These forward-looking statements include all statements that are related referrals following the exp
Slide 3: Non-GAAP Measures
NON-G AAP MEA SURES Adjusted operating income (loss), pretax loss attributable to Altisource, adjusted pretax Furthermore, we believe the exclusion of more significant non-operational items loss attributable to Altisource, adjusted net loss attributable to Altisource, adjusted enables comparability
Slide 4: Third Quarter Overview
THIRD QUARTER 20 24 OV ERV IEW • Service revenue of $38.2 million grew both sequentially and year-over-year despite August 2024 YTD declines in default metrics compared to the same period last year: − 15% decline in average serious delinquency rates1 − 7% decline in foreclosure initiations1 − 14% de
Slide 5: Total Company Financial Performance
TOTAL COMPANY FINANCIA L PERFORMANCE Service Revenue Financial Performance Sept’23 YTD: Sept’24 YTD: • September 2024 year-to-date compared to the same $104.4 $111.9 period in 2023: $38.2 $37.1 $36.9 $36.9 − $7.5 million growth in Service revenue primarily driven by sales wins and price $33.2 $34.1
Slide 6: Servicer and Real Estate Segment
SE RVICER AND REAL ESTATE S EGME NT Segment Service Revenue Segment Financial Performance $29.8 $30.4 • Q3 2024 Service revenue was 4.7% higher than Q2 $29.1 $29.0 $24.9 $26.9 $26.2 2024 and 13.0% higher than Q3 2023 • Q3 2024 Adjusted EBITDA1 of $9.9 million was roughly flat compared to Q3 2023 and
Slide 7: Servicer and Real Estate Sales Pipeline and Wins
SE RVICER AND REAL ESTATE SALES P IPE LINE AND W INS ($ millions) $41.7 Attractive Sales $38.6 $30.1 $25.6 $26.7 $23.2 Pipeline1 $20.3 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 FY 2023 YTD 2024 Strong Sales $25.9 Wins Wins $15.3 $58.4 $1
Slide 8: Return to a Normal Default Mortgage Market
RETURN TO A NORMA L DEFAULT MORTG AG E MA RK ET Foreclosure Starts and Timing Shaded area represents • In response to the COVID-19 pandemic, borrowers were period of borrower relief provided various relief measures including foreclosure and Foreclosure Starts measures % eviction moratoriums, forbear
Slide 9: Return to a Normal Default Mortgage Market
RETURN TO A NORMA L DEFAULT MORTG AG E MA RK ET Foreclosures that Convert to Foreclosure Sales Shaded area represents • Foreclosure sales remain significantly lower than pre-pandemic period of borrower relief and 2023 levels Foreclosure measures % Sales − YTD August 2024 Foreclosure sales were 54% l
Slide 10: Origination Segment
ORIGINATION SEG MENT Segment Service Revenue Segment Financial Performance $8.3 • Compared to Q3 2023, Adjusted EBITDA1 improved $7.8 $7.8 $7.8 $7.3 $7.2 $1.4 million on $0.5 million of Service revenue $6.0 growth − Improvement driven by cost savings and efficiency initiatives • Compared to Q2 2024,
Slide 11: Origination Sales Pipeline and Wins
ORIGINATION SALES P IPE LINE AND W INS ($ millions) $24.6 $20.8 $20.4 Attractive Sales $18.0 $14.7 $13.9 $12.6 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 FY 2023 YTD 2024 Strong Sales Wins $4.9 Wins $10.3 $4.2 $10.6 $3.4 Wins3 $
Slide 12: Corporate and Others
CORP ORATE A ND OTHERS Corporate and Others Adjusted EBITDA1 Loss Corporate Financial Performance • Corporate and Others includes costs related to corporate functions including executive, $ (9.5) infrastructure and certain technology groups, finance, $ (8.9) $ (8.7) law, compliance, human resources,
Slide 13: Conclusion
CONCLUS ION • Strong third quarter and year-to-date 2024 financial performance despite the decline in serious delinquency rates, foreclosure starts and foreclosure sales over the same period in 2023 • Service revenue for the first nine of months of 2024 is $7.5 million, or 7%, higher and Adjusted EB
Slide 14: Appendix
APPENDIX THIRD C O N S O L I D AT E D QUARTER 2024 SALES INVESTOR O P E R AT I N G NON-GAAP FINANCIAL PIPELINE AND R E L AT I O N S METRICS MEASURES R E S U LT S WINS I N F O R M AT I O N 15 17 18 21 30 © 2024 Altisource All Rights Reserved. 14
Slide 15: Third Quarter Financial Results
THIRD QUARTER 20 24 FINANCIAL RESULTS $ millions (except per share data) Q3 Q3 Vs. YTD YTD Vs. 2024 2023 Q3 2023 2024 2023 YTD 2023 Service revenue $ 38.2 $ 34.1 12% $ 111.9 $ 104.4 7% Revenue 40.5 36.2 12% 119.1 110.9 7% Gross profit 12.1 7.2 68% 37.1 21.2 75% Income (loss) from operations 1.1 (3.5
Slide 16: Progress with Select Customer Wins
PROGRESS W ITH SELECT 1 CUSTOMER WINS Agreements Anticipated Began Est. Stabilized Notified of Agreements in "Go Live" receiving revenue Win Customer description Service executed negotiation Date referrals in opportunity1 Q3'23 Servicer Multiple Default Solutions √ Q3'23 Large Q3'23 Multiple (Servic
Slide 17: Consolidated Sales Pipeline and Wins
CONSOLIDATE D SA LES P IP ELINE A ND WINS ($ millions) $62.4 $63.2 Attractive Sales $45.9 $48.2 $40.7 $35.1 $35.8 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 FY 2023 YTD 2024 $28.3 Wins Wins Strong Sales $68.8 $34.0 $17.8 $16.9 $
Slide 18: Operating Metrics
OPERATING ME TRICS Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Default Related Services Onity1 Serviced Forward Loan Portfolio2: Service revenue3 per delinquent loan4 per quarter Non-GSE $ 156 $ 158 $ 210 $ 244 $ 260 $ 241 $ 288 $ 246 $ 275 $ 262 $ 316 $ 331 $ 328 G
Slide 19: Operating Metrics
OPERATING ME TRICS Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Hubzu1: Service revenue (in millions)2 $ 6.1 $ 5.8 $ 8.0 $ 8.1 $ 6.7 $ 5.9 $ 7.7 $ 7.1 $ 7.1 $ 5.8 $ 7.1 $ 7.3 $ 6.4 Number of homes sold on Hubzu: Onity serviced portfolios3 514 510 653 772 645 579 599
Slide 20: Hubzu Inventory
HUBZU IN VENTORY Ending Inventory (in 000’s) 6.9 6.2 6.3 6.2 6.3 6.0 6.0 5.8 6.1 5.8 5.7 5.9 5.6 4.4 3.6 4.1 3.5 3.4 3.6 3.6 4.2 3.5 3.4 3.6 3.5 3.3 2.4 2.5 2.6 2.7 2.7 2.4 2.4 2.4 2.0 2.2 2.2 2.3 2.3 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 All Other Customers O
Slide 21: Non-GAAP Measures
NON-GAAP MEA SURES Adjusted operating income (loss), pretax loss attributable to Altisource, adjusted pretax loss attributable to Altisource, adjusted net loss attributable to Altisource, adjusted diluted loss per share, EBITDA, Adjusted EBITDA and Segment Adjusted EBITDA are non-GAAP measures used
Slide 22: Non-GAAP Measures
NON-GAAP MEA SURES • Adjusted diluted loss per share is calculated by dividing net loss attributable to Altisource after removing intangible asset amortization expense (net of tax), share-based compensation expense (net of tax), cost of cost savings initiatives and other (net of tax), debt amendment
Slide 23: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q3 2024 Q3 2023 YTD 2024 YTD 2023 ($ in millions except per share data) Income (loss) from operations $ 1.1 $ (3.5) $ 2.6 $ (13.9) Intangible asset amortization expense 1.3 1.4 3.8 3.9 Share-based compensation expense 0.9 1.2 3.9 3.9 Cost of cost savings initiatives
Slide 24: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q3 2024 Q3 2023 YTD 2024 YTD 2023 ($ in millions except per share data) Net loss attributable to Altisource $ (9.4) $ (11.3) $ (26.9) $ (43.1) Intangible asset amortization expense, net of tax 1.3 1.3 3.8 3.9 Share-based compensation expense, net of tax 0.7 1.1 3.4
Slide 25: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q3 2024 Q3 2023 YTD 2024 YTD 2023 ($ in millions except per share data) Calculation of the impact of intangible asset amortization expense, net of tax Intangible asset amortization expense $ 1.3 $ 1.4 $ 3.8 $ 3.9 Tax benefit from intangible asset amortization - (0.0
Slide 26: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q3 2024 Q3 2023 YTD 2024 YTD 2023 ($ in millions except per share data) Calculation of the impact of debt amendment costs, net of tax Debt amendment costs $ - $ 0.1 $ - $ 3.4 Tax benefit from debt amendment costs - - - - Debt amendment costs, net of tax - 0.1 - 3.4
Slide 27: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ($ in millions except per share data) Net loss attributable to Altisource $ (12.9) $ (18.9) $ (11.3) $ (13.2) $ (9.2) $ (8.3) $ (9.4) Income tax provision 1.5 0.6 0.4 1.1 0.7 0.7 0.8 1 Interest expense, net of
Slide 28: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ($ in millions except per share data) Servicer and Real Estate: Income before income taxes and non-controlling interests $ 9.9 $ 6.2 $ 8.4 $ 7.6 $ 9.3 $ 10.0 $ 8.9 1 Interest (income)expense, net of interest ex
Slide 29: Non-GAAP Measures
NON-GAAP MEA SURES Reconciliation Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 hn Q3 2024 ($ in millions except per share data) Corporate and Others: Loss before income taxes and non-controlling interests $ (19.6) (22.4) $ (17.8) $ (18.6) $ (17.6) $ (17.5) $ (17.7) 1 Interest (income) expense, ne
Slide 30: Investor Relations Information
INVESTOR RELATION S INFORMATION Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of ABOUT ALTISOURCE innovative services and technologies, Altisource helps solve the demand
Slide 31: Altisource
a x Altisource YOUR ONE SOURCE™
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