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Jun 30, 2021
Altisource Q2 2021 Earnings Report
Altisource reported a net loss attributable to Altisource of $(18.5) million and service revenue of $44.0 million.
Key Takeaways
Altisource reported a challenging operating environment but expressed excitement about the future of its Origination and Default businesses. The Origination business saw year-over-year growth, while the Default business was impacted by the pandemic but is expected to grow in 2022 and stabilize in 2023.
Origination business revenue grew by 16% compared to the second quarter of 2020.
The Federal government extended foreclosure and eviction moratoriums by one month through July 2021.
CFPB finalized rules prohibiting foreclosure initiations until January 1, 2022, with exceptions.
Second quarter 2021 cash operating costs were $6.8 million lower than first quarter 2021 cash operating costs.
Altisource
Altisource
Forward Guidance
Altisource anticipates a return to growth in 2022, particularly in the Origination and Default businesses. The company is evaluating options to enhance shareholder value, including potential strategic transactions related to the Origination business.
Positive Outlook
- Origination business's unique distribution engine
- Mission critical solutions
- Strong growth prospects in the Origination business
- Potential growth in the Default business in 2022
- Stabilization of the Default business during 2023
Challenges Ahead
- Challenging operating environment
- Impact of the pandemic on the Default business
- Foreclosure and eviction moratoriums affecting the Default business
- Uncertainty regarding the timing of the recovery of the default market
- No assurance that exploration of ways to enhance shareholder value will result in any transaction