REVENUE

12 Months Ended

Dec. 31, 2023

Revenues [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 2). Our services are provided to customers located in the United States. The components of revenue were as follows for the years ended December 31:

(in thousands)	2023		2022
Service revenue	$	136,565	$	144,496
Reimbursable expenses	8,273		8,039
Non-controlling interests	228		585
Total	$	145,066	$	153,120

Disaggregation of Revenue

Disaggregation of total revenue by segment and major source was as follows for the years ended December 31:

	2023
(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	$	95,643	$	12,136	$	7,688	$	115,467
Origination	28,379		635		585		29,599
Total revenue	$	124,022	$	12,771	$	8,273	$	145,066

	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	$	100,477	$	11,655	$	7,529	$	119,661
Origination	32,223		726		510		33,459
Total revenue	$	132,700	$	12,381	$	8,039	$	153,120

Transactions with Related Parties

In May 2022, John G. Aldridge, Jr., the Managing Partner of Aldridge Pite LLP (“Aldridge Pite”), joined the Board of Directors of Altisource. Aldridge Pite provides eviction and other real estate related services to the Company. The Company recognized less than $0.1 million for both the years ended December 31, 2023 and 2022, of service revenue relating to services provided to Aldridge Pite.

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 consolidated balance sheets. Revenue recognized that was included in the contract liability at the beginning of the period was $3.5 million and $4.2 million for the years ended December 31, 2023 and 2022, respectively.