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Dec 31, 2021
Altisource Q4 2021 Earnings Report
Altisource's financial results for Q4 2021 were announced, showing a net income of $70.6 million and a service revenue of $36.9 million.
Key Takeaways
Altisource reported a net income of $70.6 million for Q4 2021, driven by the sale of Pointillist. However, service revenue declined by 36% compared to Q4 2020. The company ended the year with a strong cash position and reduced net debt.
Altisource ended 2021 with $98.1 million in cash and cash equivalents, a 68% increase from December 31, 2020.
The company sold its equity interest in Pointillist for approximately $106.0 million, recognizing a pre-tax and after-tax gain of $88.9 million.
Service revenue for Q4 2021 was $36.9 million, a 36% decrease compared to Q4 2020.
Net income attributable to Altisource for Q4 2021 was $70.6 million, or $4.40 per diluted share.
Forward Guidance
Altisource anticipates a return to revenue growth in 2022, with quarterly year-over-year revenue growth forecasted to begin in the third quarter. The company also expects to generate positive Adjusted EBITDA for the second half of 2022.
Positive Outlook
- Anticipated tailwinds in the Default business from the termination of borrower relief programs.
- Launch of new solutions.
- Customer wins.
- Greater product adoption in the Origination business.
- Benefit of prior cost reduction initiatives.
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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