REVENUE

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

We classify revenue in three categories: service revenue, revenue from reimbursable expenses and non-controlling interests. Service revenue consists of amounts attributable to our fee-based services. During the three and nine months ended September 30, 2019, service revenue included sales of short-term investments in real estate (see Note 7). Reimbursable expenses and non-controlling interests are pass-through items for which we earn no margin. Reimbursable expenses consist of amounts we incur on behalf of our customers in performing our fee-based services that we pass directly on to our customers without a markup. Non-controlling interests represent the earnings of Lenders One, a consolidated entity that is a mortgage cooperative managed, but not owned, by Altisource. The Lenders One members’ earnings are included in revenue and reduced from net income to arrive at net income attributable to Altisource (see Note 1). Our services are provided to customers located in the United States. The components of revenue were as follows:

	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2020		2019		2020		2019
Service revenue	$	85,386	$	133,781	$	289,570	$	489,300
Reimbursable expenses	2,810		7,213		14,495		16,484
Non-controlling interests	599		499		1,516		2,179
Total	$	88,795	$	141,493	$	305,581	$	507,963

Disaggregation of Revenue

Disaggregation of total revenues by major source is as follows:

(in thousands)	Revenue recognized when services are performed or assets are sold		Revenue related to technology platforms and professional services		Reimbursable expenses revenue		Total revenue
Three months ended September 30, 2020	$	82,067	$	3,918	$	2,810	$	88,795
Three months ended September 30, 2019	125,939		8,341		7,213		141,493
Nine months ended September 30, 2020	277,522		13,564		14,495		305,581
Nine months ended September 30, 2019	452,643		38,836		16,484		507,963

Contract Balances

Our contract assets consist of unbilled accounts receivable (see Note 5). Our contract liabilities consist of current deferred revenue and other non-current liabilities as reported on the accompanying condensed consolidated balance sheets. Revenue recognized that was included in the contract liability at the beginning of the period was $4.5 million and $9.4 million for the nine months ended September 30, 2020 and 2019, respectively ($0.7 million and $0.9 million for the third quarter of 2020 and 2019, respectively).