SEGMENT REPORTING

6 Months Ended

Jun. 30, 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, infrastructure and certain technology groups, 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 June 30, 2022
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	31,947	$	8,474	$	—	$	40,421
Cost of revenue	22,413		9,245		4,697		36,355
Gross profit (loss)	9,534		(771)		(4,697)		4,066
Selling, general and administrative expenses	3,237		2,220		9,068		14,525
Income (loss) from operations	6,297		(2,991)		(13,765)		(10,459)
Total other income (expense), net	—		—		(3,341)		(3,341)
Income (loss) before income taxes and non-controlling interests	$	6,297	$	(2,991)	$	(17,106)	$	(13,800)

	Three months ended June 30, 2021
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	30,150	$	14,926	$	965	$	46,041
Cost of revenue	22,204		12,881		8,952		44,037
Gross profit (loss)	7,946		2,045		(7,987)		2,004
Selling, general and administrative expenses	3,566		1,572		11,418		16,556
Income (loss) from operations	4,380		473		(19,405)		(14,552)
Total other income (expense), net	2		—		(3,520)		(3,518)
Income (loss) before income taxes and non-controlling interests	$	4,382	$	473	$	(22,925)	$	(18,070)

	Six months ended June 30, 2022
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	60,483	$	19,454	$	—	$	79,937
Cost of revenue	42,153		18,552		9,519		70,224
Gross profit (loss)	18,330		902		(9,519)		9,713
Selling, general and administrative expenses	6,296		4,340		17,863		28,499
Income (loss) from operations	12,034		(3,438)		(27,382)		(18,786)
Total other income (expense), net	—		—		(6,157)		(6,157)
Income (loss) before income taxes and non-controlling interests	$	12,034	$	(3,438)	$	(33,539)	$	(24,943)

	Six months ended June 30, 2021
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	62,791	$	32,193	$	1,522	$	96,506
Cost of revenue	47,975		27,167		19,053		94,195
Gross profit (loss)	14,816		5,026		(17,531)		2,311
Selling, general and administrative expenses	7,420		2,882		25,140		35,442
Income (loss) from operations	7,396		2,144		(42,671)		(33,131)
Total other income (expense), net	4		—		(6,015)		(6,011)
Income (loss) before income taxes and non-controlling interests	$	7,400	$	2,144	$	(48,686)	$	(39,142)

(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Total assets:
June 30, 2022	$	76,651	$	56,941	$	91,247	$	224,839
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)	June 30, 2022		December 31, 2021
Luxembourg	$	3,169	$	3,883
United States	1,079		1,932
India	1,440		999
Uruguay	79		59
Total	$	5,767	$	6,873