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Mar 31, 2020
Altisource Q1 2020 Earnings Report
Financial results for the first quarter of 2020 were announced.
Key Takeaways
Altisource reported a decrease in service revenue by 31% compared to the first quarter of 2019, primarily due to the sale, discontinuation, and exit from certain businesses in 2019, as well as the impact of COVID-19 related restrictions. This was partially offset by stronger performance from origination related businesses.
Service revenue was $113.2 million.
Loss from operations was $(4.2) million.
Adjusted operating income was $8.5 million.
Net loss attributable to Altisource was $(11.7) million, or $(0.75) per diluted share.
Altisource
Altisource
Forward Guidance
Altisource is focused on maintaining the health and safety of its employees, adjusting operations to mitigate the impact on customers and business, and addressing the cost structure and preserving liquidity.
Positive Outlook
- Maintaining the health and safety of employees.
- Adjusting operations to mitigate the impact to customers and business.
- Addressing the cost structure.
- Preserving liquidity.
- Maintaining capacity for anticipated growth in origination related services.
Challenges Ahead
- Potential period of lower revenue than planned.
- Negative impact from COVID-19 related governmental restrictions.
- Changing vendor and consumer behavior.
- Reduction in the size of Ocwen’s portfolio.
- NRZ’s more aggressive sale of homes at the foreclosure auction.