SEGMENT REPORTING

Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our Chief Operating Decision Maker) to evaluate operating performance and to assess the allocation of our resources.

Effective January 1, 2017, our reportable segments changed as a result of changes in our internal organization, which changed the way our chief operating decision maker manages our businesses, allocates resources and evaluates performance. We now report our operations through two new reportable segments: Mortgage Market and Real Estate Market. In addition, we report Other Businesses, Corporate and Eliminations separately. Prior to the January 1, 2017 change in reportable segments, our reportable segments were Mortgage Services, Financial Services and Technology Services. The former Mortgage Services segment was separated into the Mortgage Market and Real Estate Market segments (as described below). Furthermore, certain of the software services business units that were formerly in the Technology Services segment and the mortgage charge-off collections business that was formerly in the Financial Services segment are now included in the Mortgage Market. Other Businesses, Corporate and Eliminations includes the other business that were formerly in the Financial Services segment as well as IT infrastructure management services formerly in the Technology Services segment. Prior year comparable period segment disclosures have been restated to conform to the current year presentation.

The Mortgage Market segment provides loan servicers and originators with marketplaces and services and a portfolio of software, data analytics and information technologies that span the mortgage lifecycle. The Real Estate Market segment provides rental property investors and real estate consumers with marketplaces, products and services that span the real estate lifecycle. In addition, the Other Businesses, Corporate and Eliminations segment includes businesses that provide asset recovery management collection services primarily to debt originators (e.g., credit card, auto lending and retail credit), customer relationship management services primarily to the utility, insurance and hotel industries and IT infrastructure management services. Other Businesses, Corporate and Eliminations also includes interest expense and costs related to corporate support functions including executive, finance, law, compliance, human resources, vendor management, facilities, risk management, and sales and marketing costs not allocated to the business units as well as eliminations between the reportable segments.

Financial information for our segments is as follows:



	Three months ended June 30, 2017
(in thousands)	Mortgage Market		Real Estate Market			Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	210,195	$	25,130		$	15,360		$	250,685
Cost of revenue	144,326		26,844			14,223			185,393
Gross profit (loss)	65,869		(1,714		)	1,137			65,292
Selling, general and administrative expenses	29,805		5,551			17,114			52,470
Income (loss) from operations	36,064		(7,265		)	(15,977		)	12,822
Total other income (expense), net	102		—			(764		)	(662		)

Income (loss) before income taxes and non-controlling interests	$	36,166	$	(7,265	)	$	(16,741	)	$	12,160



	Three months ended June 30, 2016
(in thousands)	Mortgage Market		Real Estate Market		Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	211,300	$	24,804	$	19,695		$	255,799
Cost of revenue	135,723		16,854		21,794			174,371
Gross profit (loss)	75,577		7,950		(2,099		)	81,428
Selling, general and administrative expenses	31,141		5,620		17,446			54,207
Income (loss) from operations	44,436		2,330		(19,545		)	27,221
Total other income (expense), net	74		4		(3,322		)	(3,244		)

Income (loss) before income taxes and non-controlling interests	$	44,510	$	2,334	$	(22,867	)	$	23,977



	Six months ended June 30, 2017
(in thousands)	Mortgage Market		Real Estate Market			Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	414,918	$	45,193		$	31,057		$	491,168
Cost of revenue	284,476		48,987			29,883			363,346
Gross profit (loss)	130,442		(3,794		)	1,174			127,822
Selling, general and administrative expenses	58,487		9,876			31,808			100,171
Income (loss) from operations	71,955		(13,670		)	(30,634		)	27,651
Total other income (expense), net	112		—			(5,857		)	(5,745		)

Income (loss) before income taxes and non-controlling interests	$	72,067	$	(13,670	)	$	(36,491	)	$	21,906



	Six months ended June 30, 2016
(in thousands)	Mortgage Market		Real Estate Market		Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	414,701	$	48,713	$	42,517		$	505,931
Cost of revenue	269,766		31,312		42,156			343,234
Gross profit	144,935		17,401		361			162,697
Selling, general and administrative expenses	60,595		11,794		35,434			107,823
Income (loss) from operations	84,340		5,607		(35,073		)	54,874
Total other income (expense), net	134		—		(9,946		)	(9,812		)

Income (loss) before income taxes and non-controlling interests	$	84,474	$	5,607	$	(45,019	)	$	45,062



(in thousands)	Mortgage Market		Real Estate Market		Other Businesses, Corporate and Eliminations		Consolidated Altisource

Total assets:
June 30, 2017	$	308,501	$	43,370	$	264,757	$	616,628
December 31, 2016	347,067		47,863		294,282		689,212

Our services are provided to customers primarily located in the United States. Premises and equipment, net consist of the following, by country:



(in thousands)	June 30, 2017		December 31, 2016

United States	$	57,030	$	71,418
India	10,743		14,006
Luxembourg	16,793		14,791
Philippines	2,299		3,027
Uruguay	195		231

Total	$	87,060	$	103,473