REVENUE

9 Months Ended

Sep. 30, 2022

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. 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)	2022		2021		2022		2021
Service revenue	$	36,290	$	41,626	$	111,691	$	133,672
Reimbursable expenses	1,957		1,416		6,158		5,365
Non-controlling interests	133		201		468		712
Total	$	38,380	$	43,243	$	118,317	$	139,749

Disaggregation of Revenue

Disaggregation of total revenues by segment and major source was as follows:

	Three months ended September 30, 2022
(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
Servicer and Real Estate	$	26,387	$	2,633	$	1,846	$	30,866
Origination	7,392		11		111		7,514
Total revenue	$	33,779	$	2,644	$	1,957	$	38,380

	Three months ended September 30, 2021
(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
Servicer and Real Estate	$	23,785	$	1,782	$	1,226	$	26,793
Origination	14,362		11		190		14,563
Corporate and Others	—		1,887		—		1,887
Total revenue	$	38,147	$	3,680	$	1,416	$	43,243

	Nine months ended September 30, 2022
(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
Servicer and Real Estate	$	77,947	$	7,654	$	5,748	$	91,349
Origination	26,533		25		410		26,968
Total revenue	$	104,480	$	7,679	$	6,158	$	118,317

	Nine months ended September 30, 2021
(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
Servicer and Real Estate	$	77,898	$	6,832	$	4,854	$	89,584
Origination	46,213		32		511		46,756
Corporate and Others	—		3,409		—		3,409
Total revenue	$	124,111	$	10,273	$	5,365	$	139,749

Contract Balances

Our contract assets consist of unbilled accounts receivable (see Note 4). 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 $3.7 million and $4.7 million for the nine months ended September 30, 2022 and 2021, respectively ($0.8 million and $0.9 million for the third quarter of 2022 and 2021, respectively)