The following is a summary of the Altisource Portfolio Solutions S.A. (ASPS) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Altisource reported Q1 2024 adjusted EBITDA of $4.6 million on $36.9 million of service revenue.

• Over the last two years, adjusted EBITDA improved by over $30 million despite low origination volume and historically low mortgage delinquacy rates.

• For 2024, the company predicts revenue growth of 23% and an EBITDA increase of $21 million compared to previous year.

• The service revenue grew 15% compared to Q4 2023, with an 11% growth in the Servicer and Real Estate segment and a 30% growth in the Origination segment.

• Q1 2024 EBITDA margins expanded to 12.6%, compared to 0.7% in Q4 2023 and 4% in Q1 2023.

Business Progress:

• The Servicer and Real Estate segment is gaining market share with two new contracts signed in March and April.

• Thirteen agreements were signed for the tri-merge credit product and related reseller services in the Origination segment in the first quarter.

• Despite industry-wide decline, service revenue in the Origination segment grew 30%.

• Anticipated annualized service revenue is projected to increase from $147 million to $219 million, and EBITDA from $16 million to $35 million due to recent business wins.

• Altisource attributes its $88 million revenue increase from business wins largely to the growth in renovations, trustee wins, and REO auction work.

• The company is strategically targeting the early stage of foreclosure process and expanding its foreclosure trustee business.

• Projected EBITDA could increase by about $20-$25 million and revenue growth of $60 million above current trends, even if the market normalizes.

• Future expenses are expected to increase due to hiring for business growth.

More details: Altisource Portfolio IR

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