Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Q1 2024 Earnings Presentation
32 slides from Altisource Portfolio Solutions's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Supplementary Information
ALTISOURCE FIRST QUARTER 2024 SUPPLEMENTARY INFORMATION APRIL 25, 2024 1
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, pretax loss attributable to Altisource, adjusted pretax loss Furthermore, we believe the exclusion of more significant non-operational items attributable to Altisource, adjusted net loss attributable to Altisource, adjusted diluted enables comparability
Slide 4: First Quarter 2024 Overview
FIRST QUARTER 20 24 OV ERV IEW • Generated $4.6 million of Adjusted EBITDA1, our best quarterly performance since Q3 2020, on $36.9 million of Service revenue • Improved Adjusted EBITDA1 by over $30 million over the last two calendar years in an incredibly difficult environment of low origination vo
Slide 5: Financial Performance and Trends
FINANCIAL PE RFORMA NCE A ND TRENDS Service Revenue Financial Performance $37.1 $36.9 • Grew Service revenue 15% compared to Q4 2023 $34.1 • Servicer and Real Estate (“SRE”) segment: 11% $33.2 $32.2 growth • Origination segment: 30% growth • Service revenue was almost flat compared to Q1 2023 Q1'23
Slide 6: Scenario – Fully Ramped Wins
SCENA RIO – FULLY RAMPED W INS Service Revenue - Scenario Assumptions • Scenario annualizes and adjusts Q1 2024 performance to exclude estimated non-recurring items and adds estimated fully ramped Service revenue and Adjusted EBITDA1 related to business we have already won2, net of an assumed level
Slide 7: Servicer and Real Estate Segment
SE RVICER AND REAL ESTATE S EGME NT Segment Service Revenue Financial Performance $29.8 $29.1 • Q1 2024 Service revenue was 11% higher than Q4 2023 and 2% lower than Q1 2023 (Q1 2023 included $1 $26.9 $26.2 million of estimated one-time Service revenue; no $24.9 comparable amounts for Q4 2023 and Q1
Slide 8: SRE Sales Pipeline and Wins
SRE SALES PIPELINE AND WINS ($ millions) $41.7 Attractive Sales $38.6 $30.1 $25.6 $26.7 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 FY 2023 Wins Strong Sales $25.9 $58.4 $15.3 Wins3 $14.4 $6.3 $2.9 Estimated Annualized Revenue on a Stabilize
Slide 9: Macroeconomic Environment
MACROECONOMIC EN VIRONMENT Early signs of consumer financial stress could be precursors to a rise in mortgage delinquency rates • Consumer savings have declined1 • 3.6% of workers made a hardship withdrawal from employer- • Credit card debt at record high sponsored 401(k) plans in 2023, up from 2.8%
Slide 10: Origination Segment
ORIGINATION SEG MENT Segment Service Revenue Financial Performance $7.3 $8.3 $7.8 • Q1 2024 Service revenue growth of 30% outperformed $7.2 $6.0 the 6% decline in industrywide residential origination volume1 compared to Q4 2023 • Adjusted EBITDA2 improved $0.9 million compared to Q4 2023 Q1'23 Q2'23
Slide 11: Origination Sales Pipeline and Wins
ORIGINATION SALES P IPE LINE AND W INS ($ millions) $24.6 $20.8 $20.4 Attractive Sales $18.0 $13.9 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 FY 2023 Wins Strong Sales $3.4 $10.3 $4.2 $2.9 Wins3 $1.7 $2.4 Estimated Annualized Revenue on a S
Slide 12: Corporate and Others Segment
CORP ORATE A ND OTHERS SEG MENT Corporate and Others Segment Adjusted EBITDA1 Loss Financial Performance • Corporate and Others includes costs related to corporate functions including executive, infrastructure $ (9.5) and certain technology groups, finance, law, $ (8.9) $ (8.7) compliance, human res
Slide 13: Conclusion
CONCLUS ION • Strong first quarter 2024 financial performance • Generated $4.6 million of Adjusted EBITDA1, our best quarterly performance since Q3 2020, on $36.9 million of Service revenue • Continue to win meaningful new business and are making good progress ramping 2023 Sales Wins in a historical
Slide 14: Appendix
APPENDIX FIRST QUARTER C O N S O L I D AT E D 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 31 © 2024 Altisource All Rights Reserved. 14
Slide 15: First Quarter 2024 Financial Results
FIRST QUARTER 20 24 FINANCIAL RESULTS $ millions (except per share data) Q1 Q1 Vs. 2024 2023 Q1 2023 Service revenue 36.9 37.1 - Revenue 39.5 39.5 - Gross profit 12.3 8.5 45% Loss from operations (0.5) (3.6) 85% Adjusted operating income1 3.0 2.3 30% Pretax loss attributable to Altisource1 (8.5) (11
Slide 16: Progress with Select Customer Wins
PROGRESS W ITH SELECT 1 CUSTOMER WINS Agreements Began Est. Stabilized Notified of Agreements in Anticipated receiving revenue Win Customer description Service executed negotiation "Go Live" Date referrals in opportunity1 Q2'22 Originator Granite √ Q1'23 Medium Q4'22 Servicer (Multiple) Field 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 Pipeline1 Weighted Average Pipeline Estimated Revenue – End of Quarter 2 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 FY 2023 $28.3 Wins Strong Sales $68.8 $17.8 $16.9 Wins3 $10.5 $5.7 Estimated Annualized Revenue
Slide 18: Operating Metrics
OPERATING ME TRICS Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 1 2 Ocwen Serviced Portfolio : Default Related Services: Service revenue3 per delinquent loan 4 per quarter5 Non-GSE $ 157 $ 158 $ 156 $ 158 $ 210 $ 244 $ 260 $ 241 $ 288 $ 246 $ 275 $ 262 $ 316 GSE and
Slide 19: Operating Metrics
OPERATING ME TRICS Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 1 Hubzu : 2 Service revenue (in millions) $ 7.4 $ 8.6 $ 6.1 $ 5.8 $ 8.0 $ 8.1 $ 6.7 $ 5.9 $ 7.7 $ 7.1 $ 7.1 $ 5.8 $ 7.1 Number of homes sold on Hubzu: 3 Ocwen serviced portfolios 570 620 514 510 653 772
Slide 20: Hubzu Inventory
HUBZU IN VENTORY Ending Inventory (in 000’s) 6.9 6.2 6.3 6.2 6.3 5.9 6.0 6.0 5.8 5.9 5.8 5.7 4.5 4.4 3.4 3.6 3.6 4.1 3.5 3.5 3.6 3.9 4.2 3.4 3.5 2.4 2.4 2.5 2.6 2.7 2.7 2.4 2.4 2.1 2.0 2.0 2.2 2.2 2.3 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 All Other Customers O
Slide 21: Non-GAAP Measures
NON-GAAP MEA SURES Adjusted operating income, 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 by mana
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 Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'24 Q1'23 ($ in millions except per share data) Loss from operations $ (0.5) $ (3.6) Intangible asset amortization expense 1.3 1.3 Share-based compensation expense 2.2 1.4 Cost of cost savings initiatives and other 0.0 0.6 Debt amendment costs - 3.2 Unrealized gai
Slide 24: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'24 Q1'23 ($ in millions except per share data) Net loss attributable to Altisource $ (9.2) $ (12.9) Intangible asset amortization expense, net of tax 1.3 1.3 Share-based compensation expense, net of tax 2.0 1.2 Cost of cost savings initiatives and other, net of t
Slide 25: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'24 Q1'23 ($ in millions except per share data) Calculation of the impact of intangible asset amortization expense, net of tax Intangible asset amortization expense $ 1.3 $ 1.3 Tax benefit from intangible asset amortization - (0.0) Intangible asset amortization ex
Slide 26: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'24 Q1'23 ($ in millions except per share data) Calculation of the impact of cost of cost savings initiatives and other, net of tax Cost of cost savings initiatives and other $ 0.0 $ 0.6 Tax benefit from cost of cost savings initiatives and other (0.0) (0.1) Cost
Slide 27: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'24 Q1'23 ($ in millions except per share data) Calculation of the impact of unrealized gain on warrant liability, net of tax Unrealized gain on warrant liability $ - $ (0.7) Tax benefit from unrealized gain on warrant liability - - Unrealized gain on warrant liab
Slide 28: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 ($ in millions except per share data) Net loss attributable to Altisource $ (12.9) $ (18.9) $ (11.3) $ (13.2) $ (9.2) Income tax provision 1.5 0.6 0.4 1.1 0.7 1 Interest expense, net of interest income 6.3 9.6 9.6 9.2 9.3 Depreciation a
Slide 29: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 ($ 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 Depreciation and amortization 0.2 0.2 0.2 0.1 0.1 Intangible asset amortization expen
Slide 30: Non-GAAP Measures Reconciliation
NON-GAAP MEA SURES Reconciliation Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 ($ 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) 1 Interest expense, net of interest income 6.3 9.6 9.6 9.2 9.3 Depreciation an
Slide 31: 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 32: Altisource
a x Altisource YOUR ONE SOURCE™
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