Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Presentation (May 2024)
24 slides from Altisource Portfolio Solutions's investor presentation, May 21, 2024
Slide 1: Investor Presentation May 2024
I N V E S T O R P R E S E N T A T I O N N A S D A Q : A S P S ALTISOURCE PORTFOLIO SOLUTIONS M A Y 2 0 2 4
Slide 2: Disclaimer: Cautionary Statement Regarding Forward Looking Statements
© 2024 Altisource All Rights Reserved. DISCLAIMER 2 CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS This corporate presentation includes certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litig
Slide 3: Company Highlights
© 2024 Altisource All Rights Reserved. • Attractive suite of solutions for loan servicers and originators • Compelling Service revenue and Adjusted EBITDA1 growth catalysts include: − Ramping sales wins − A return to a normal default mortgage market − Strong sales pipeline − Increasing demand for Le
Slide 4: Overview of Altisource
© 2024 Altisource All Rights Reserved. OVERVIEW OF ALTISOURCE 4 1 Attractive suite of solutions 1 Full time employees, excluding contractors, as of April 30, 2024 2 Annualized Service Revenue based on Q1 2024 Service revenue of $36.9 million. Service Revenue presented herein excludes reimbursable ex
Slide 5: Overview of Altisource
© 2024 Altisource All Rights Reserved. OVERVIEW OF ALTISOURCE 5 Note: Numbers may not sum due to rounding. 1 Rithm Capital Corp. (“RITM” formerly known as New Residential Investment Corp.) 2 Represents the amount of field services, valuation and title Service revenue from RITM's portfolios that has
Slide 6: Attractive Suite of Solutions
ATTRACTIVE SUITE OF SOLUTIONS 6
Slide 7: Technology solutions supporting loan servicers and real estate investors
© 2024 Altisource All Rights Reserved. 7 Asset Management Workflow and Invoicing Solutions Technology solutions that support loan servicers and real estate investors Online Real Estate Marketing Platform Real Estate Marketplace Real Estate Brokerage Valuation Products Title and Escrow Construction R
Slide 8: Servicer and Real Estate Service Offerings
© 2024 Altisource All Rights Reserved. SERVICER AND REAL ESTATE SERVICE OFFERINGS 8 DescriptionSRE Businesses Hubzu® Online Real Estate Marketing Platform, Real Estate Brokerage and Asset Management M A R K E T P L A C E Real Estate Marketplace Property Inspection and Preservation (Field Services)S
Slide 9: Mortgage Originators: Lenders One solutions
© 2024 Altisource All Rights Reserved. Membership Events Market Intelligence and Benchmarking Vendor Management SaaS Insurance Capital Markets Solutions Suite of Third-Party Solutions Borrower Verifications Tri-merge Credit and Related Products Flood Certifications Suite of Third-Party Solutions Hom
Slide 10: Origination Service Offerings
© 2024 Altisource All Rights Reserved. ORIGINATION SERVICE OFFERINGS 10 DescriptionORG Businesses L E N D E R S O N E ® Mortgage Loan Fulfillment S O L U T I O N S Title and Escrow Valuation Products Insurance Vendor Management SaaS O R I G I N AT I O N T E C H Loan QC SaaS Document Solutions SaaS A
Slide 11: Compelling Growth Catalysts
COMPELLING GROWTH CATALYSTS 11
Slide 12: Q1 2024 Scenario: Annualized Service Revenue and Adjusted EBITDA
© 2024 Altisource All Rights Reserved. 12 Note: Dollars in millions 1 This is a non-GAAP measure reconciled and calculated in the Appendix. For a definition of Adjusted EBITDA, see page 23 2 Analysis is based on Sales Wins through April 22, 2024 • Scenario annualizes and adjusts Q1 2024 performance
Slide 13: Run-Rate Case
© 2024 Altisource All Rights Reserved. • The Run-Rate Case expands on the Scenario on page 12 and assumes the default market returns to a normal, pre-pandemic foreclosure environment • Default Service revenue – Ocwen-serviced loans: − Service revenue per delinquent loan for Ocwen-serviced non-GSE lo
Slide 14: Foreclosure Starts and Timing
© 2024 Altisource All Rights Reserved. 14Source: Data based on ICE Mortgage Monitor and First Look Reports with data from January 2018 through March 2024 Foreclosure Starts and Timing Foreclosure Starts Days • In response to the COVID-19 pandemic, borrowers were provided various relief measures incl
Slide 15: Foreclosure Sales
© 2024 Altisource All Rights Reserved. 15 • Foreclosure sales are increasing, but remain significantly lower than pre- pandemic levels − 2023 Foreclosure sales were 46% lower than 2019 (while foreclosure starts were 31% lower) − Q1 2024 Foreclosure sales were 52% lower than the same period in 2019 −
Slide 16: Strong Sales Wins and Attractive Sales Pipeline
© 2024 Altisource All Rights Reserved. 16 $62.4 $63.2 $45.9 $48.2 $40.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 $17.8 $5.7 $16.9 $28.3 $10.5 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 $0.1 $0.7 $1.1 $2.0 $3.5 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Strong Sales Wins3 Estimated Annualized Revenue on a Stabilized Basis Attractive Sal
Slide 17: Increasing Demand for Lenders One Solutions
© 2024 Altisource All Rights Reserved. INCREASING DEMAND FOR LENDERS ONE SOLUTIONS 17 1 MBA Mortgage Finance Forecasts from April 2020 through April 2024 2 US REO Partners, MBA “IMBs Report Losses in the Third Quarter of 2022” (November 18, 2022) 3 For certain other Origination solutions (e.g., Trel
Slide 18: Early signs of consumer financial stress
© 2024 Altisource All Rights Reserved. • Consumer savings have declined1 • Credit card debt near record high • Balances on home equity lines of credit have grown for eight consecutive quarters2 • Home affordability ended 2023 at a near-10-year low3 • Auto and credit card delinquencies continue to ri
Slide 19: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE 19
Slide 20: Service Revenue and Adjusted EBITDA by segment
© 2024 Altisource All Rights Reserved. 20 Note: Dollars in millions 1 This is a non-GAAP measure reconciled and calculated in the Appendix. For a definition of Adjusted EBITDA, see page 23 2 Adjusted EBITDA margin is a non-GAAP measure reconciled and calculated in the Appendix. For a definition of A
Slide 21: 2024 Guidance
© 2024 Altisource All Rights Reserved. 21 Note: Dollars in millions 1 The 2024 Financial Guidance is based upon our current expectations for the markets in which we operate and assumes only a modest benefit from the post-COVID increase in foreclosure starts and 17% growth in industrywide origination
Slide 22: Appendix
Altisource APPENDIX
Slide 23: Reconciliation of Non-GAAP Measures
© 2024 Altisource All Rights Reserved. RECONCIL IATION OF NON-GAAP MEASURES 23 Note: Numbers may not sum due to rounding 1 Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for certain special items set forth in the table above 2 Adjusted EBITDA marg
Slide 24: Reconciliation of Non-GAAP Measures
© 2024 Altisource All Rights Reserved. RECONCIL IATION OF NON-GAAP MEASURES 24 Note: Numbers may not sum due to rounding 1 Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, adjusted for certain special items set forth in the table above 2 Adjusted EBITDA marg
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