SEGMENT REPORTING

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

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, 2022, our reportable segments changed as a result of a change in the way our Chief Executive Officer (our chief operating decision maker) manages our businesses, allocates resources and evaluates performance, and the related changes in our internal organization. We now report our operations through two new reportable segments: Servicer and Real Estate and Origination. In addition, we report Corporate and Others separately. Prior to the January 1, 2022 change in reportable segments, the Company operated with one reportable segment (total Company). Prior year comparable period segment disclosures have been restated to conform to the current year presentation.

The Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Corporate and Others includes Pointillist (sold on December 1, 2021), interest expense and costs related to corporate functions including executive, finance, law, compliance, human resources, vendor management, facilities, risk management, as well as eliminations between reportable segments.

Financial information for our segments is as follows:

	Three months ended March 31, 2022
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	28,536	$	10,980	$	—	$	39,516
Cost of revenue	19,740		9,307		4,822		33,869
Gross profit (loss)	8,796		1,673		(4,822)		5,647
Selling, general and administrative expenses	3,059		2,120		8,795		13,974
Income (loss) from operations	5,737		(447)		(13,617)		(8,327)
Total other income (expense), net	—		—		(2,816)		(2,816)
Income (loss) before income taxes and non-controlling interests	$	5,737	$	(447)	$	(16,433)	$	(11,143)

	Three months ended March 31, 2021
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	32,641	$	17,267	$	557	$	50,465
Cost of revenue	25,771		14,286		10,101		50,158
Gross profit (loss)	6,870		2,981		(9,544)		307
Selling, general and administrative expenses	3,854		1,310		13,722		18,886
Income (loss) from operations	3,016		1,671		(23,266)		(18,579)
Total other income (expense), net	2		—		(2,495)		(2,493)
Income (loss) before income taxes and non-controlling interests	$	3,018	$	1,671	$	(25,761)	$	(21,072)

(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Total assets:
March 31, 2022	$	64,451	$	59,829	$	115,497	$	239,777
December 31, 2021	61,832		59,741		136,235		257,808

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

(in thousands)	March 31, 2022		December 31, 2021
Luxembourg	$	3,526	$	3,883
United States	1,475		1,932
India	878		999
Uruguay	48		59
Total	$	5,927	$	6,873