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 September 30, 2017
(in thousands)	Mortgage Market		Real Estate Market			Other Businesses, Corporate and Eliminations			Consolidated Altisource

Revenue	$	199,262	$	22,121		$	13,596		$	234,979
Cost of revenue	137,466		23,497			13,935			174,898
Gross profit (loss)	61,796		(1,376		)	(339		)	60,081
Selling, general and administrative expenses	28,006		4,208			14,408			46,622
Income (loss) from operations	33,790		(5,584		)	(14,747		)	13,459
Total other income (expense), net	26		—			(3,128		)	(3,102		)

Income (loss) before income taxes and non-controlling interests	$	33,816	$	(5,584	)	$	(17,875	)	$	10,357



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

Revenue	$	211,821	$	21,516		$	19,408		$	252,745
Cost of revenue	138,646		16,634			18,722			174,002
Gross profit	73,175		4,882			686			78,743
Selling, general and administrative expenses	29,903		6,961			17,022			53,886
Income (loss) from operations	43,272		(2,079		)	(16,336		)	24,857
Total other income (expense), net	10		—			(6,071		)	(6,061		)

Income (loss) before income taxes and non-controlling interests	$	43,282	$	(2,079	)	$	(22,407	)	$	18,796



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

Revenue	$	614,180	$	67,314		$	44,653		$	726,147
Cost of revenue	421,942		72,484			43,818			538,244
Gross profit (loss)	192,238		(5,170		)	835			187,903
Selling, general and administrative expenses	86,493		14,084			46,216			146,793
Income (loss) from operations	105,745		(19,254		)	(45,381		)	41,110
Total other income (expense), net	138		—			(8,985		)	(8,847		)

Income (loss) before income taxes and non-controlling interests	$	105,883	$	(19,254	)	$	(54,366	)	$	32,263



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

Revenue	$	626,522	$	70,229	$	61,925		$	758,676
Cost of revenue	408,412		47,946		60,878			517,236
Gross profit	218,110		22,283		1,047			241,440
Selling, general and administrative expenses	90,498		18,755		52,456			161,709
Income (loss) from operations	127,612		3,528		(51,409		)	79,731
Total other income (expense), net	144		—		(16,017		)	(15,873		)

Income (loss) before income taxes and non-controlling interests	$	127,756	$	3,528	$	(67,426	)	$	63,858



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

Total assets:
September 30, 2017	$	311,423	$	63,067	$	221,911	$	596,401
December 31, 2016	347,067		47,863		294,282		689,212

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



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

United States	$	51,900	$	71,418
India	9,657		14,006
Luxembourg	17,117		14,791
Philippines	1,981		3,027
Uruguay	168		231

Total	$	80,823	$	103,473