SEGMENT REPORTING

9 Months Ended

Sep. 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 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 September 30, 2022
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	30,866	$	7,514	$	—	$	38,380
Cost of revenue	22,082		7,654		4,651		34,387
Gross profit (loss)	8,784		(140)		(4,651)		3,993
Selling, general and administrative expenses	2,931		2,399		9,226		14,556
Income (loss) from operations	5,853		(2,539)		(13,877)		(10,563)
Total other income (expense), net	4		—		(3,894)		(3,890)
Income (loss) before income taxes and non-controlling interests	$	5,857	$	(2,539)	$	(17,771)	$	(14,453)

	Three months ended September 30, 2021
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	26,793	$	14,563	$	1,887	$	43,243
Cost of revenue	21,088		11,555		8,024		40,667
Gross profit (loss)	5,705		3,008		(6,137)		2,576
Selling, general and administrative expenses	3,289		1,586		11,729		16,604
Income (loss) from operations	2,416		1,422		(17,866)		(14,028)
Total other income (expense), net	2		—		(3,872)		(3,870)
Income (loss) before income taxes and non-controlling interests	$	2,418	$	1,422	$	(21,738)	$	(17,898)

	Nine months ended September 30, 2022
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	91,349	$	26,968	$	—	$	118,317
Cost of revenue	64,235		26,206		14,170		104,611
Gross profit (loss)	27,114		762		(14,170)		13,706
Selling, general and administrative expenses	9,227		6,739		27,089		43,055
Income (loss) from operations	17,887		(5,977)		(41,259)		(29,349)
Total other income (expense), net	4		—		(10,051)		(10,047)
Income (loss) before income taxes and non-controlling interests	$	17,891	$	(5,977)	$	(51,310)	$	(39,396)

	Nine months ended September 30, 2021
(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Revenue	$	89,584	$	46,756	$	3,409	$	139,749
Cost of revenue	69,063		38,722		27,077		134,862
Gross profit (loss)	20,521		8,034		(23,668)		4,887
Selling, general and administrative expenses	10,709		4,468		36,869		52,046
Income (loss) from operations	9,812		3,566		(60,537)		(47,159)
Total other income (expense), net	6		—		(9,887)		(9,881)
Income (loss) before income taxes and non-controlling interests	$	9,818	$	3,566	$	(70,424)	$	(57,040)

(in thousands)	Servicer and Real Estate		Origination		Corporate and Others		Consolidated Altisource
Total assets:
September 30, 2022	$	64,885	$	54,501	$	91,896	$	211,282
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)	September 30, 2022		December 31, 2021
Luxembourg	$	2,812	$	3,883
United States	779		1,932
India	1,314		999
Uruguay	65		59
Total	$	4,970	$	6,873