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Sep 30, 2021

Altisource Q3 2021 Earnings Report

Altisource's financial performance declined in Q3 2021 due to decrease in service revenue.

Key Takeaways

Altisource reported a decrease in service revenue and a net loss attributable to Altisource for the third quarter of 2021. However, the company anticipates generating positive cash flow in the second half of 2022 with a reduced cost structure and expects a significant strengthening of the balance sheet from the sale of its equity interest in Pointillist.

Third quarter service revenue was $41.6 million.

Net loss attributable to Altisource was $(18.3) million, or $(1.15) per diluted share.

Adjusted net loss attributable to Altisource was $(12.6) million, or $(0.80) per diluted share.

The company ended the third quarter with $36.5 million in cash and cash equivalents.

Total Revenue
$41.6M
Previous year: $85.4M
-51.2%
EPS
-$0.8
Previous year: -$0.24
+233.3%
Gross Profit
$2.58M
Previous year: $16.2M
-84.1%
Cash and Equivalents
$36.5M
Previous year: $67M
-45.5%
Free Cash Flow
-$18.8M
Previous year: -$3.9M
+382.2%
Total Assets
$221M
Previous year: $310M
-28.8%

Altisource

Altisource

Forward Guidance

Altisource is expecting Default business to generate significant revenue and earnings growth as we return to a more normal post-pandemic operating environment. We are executing on our strategic plan in our Origination business and believe this will also be a significant driver for growth. As a result, we anticipate that we will generate positive cash flow in the second half of 2022 on a significantly reduced cost structure. Finally, the anticipated sale of our equity interest in Pointillist significantly strengthens our balance sheet by adding an estimated $100 million of cash at closing