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Sep 30, 2023
Altisource Q3 2023 Earnings Report
Announced third quarter financial results.
Key Takeaways
Altisource reported an improvement in Adjusted EBITDA to $0.9 million, a $4.4 million increase over the previous quarter and a $7.3 million increase compared to the same quarter of the previous year. The company generated $18.4 million in net proceeds from the sale of equity and used $10 million to reduce the principal balance of its term loan.
Adjusted EBITDA was $0.9 million, a $7.3 million improvement over the same period in 2022.
Net proceeds of $18.4 million were generated from the sale of equity, with $10 million used to reduce the term loan balance.
The company estimates saving approximately $3.4 million per year in interest expense due to debt reduction.
Sales pipeline and wins remain strong, with aggressive expense management in place.
Forward Guidance
Altisource is positioning itself to capitalize on potential opportunities with existing and new customers as the default market normalizes and newer solutions gain traction. The company anticipates positive adjusted EBITDA in the fourth quarter and full year, with attractive growth expected in 2024.
Positive Outlook
- Strength of sales wins and pipeline.
- Cost savings initiatives.
- Normalization of the default market.
- Increasing consumer stress.
- Potential upside if mortgage delinquency rates rise.
Challenges Ahead
- Risks related to the COVID-19 pandemic.
- Customer concentration.
- Timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums and forbearance programs.
- The timing of the expiration of such moratoriums and programs, and any other delays occasioned by government, investor or servicer actions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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