REVENUE

3 Months Ended

Mar. 31, 2024

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 March 31,
(in thousands)	2024		2023
Service revenue	$	36,891	$	37,071
Reimbursable expenses	2,537		2,310
Non-controlling interests	41		80
Total	$	39,469	$	39,461

Disaggregation of Revenue

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

	Three months ended March 31, 2024
(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	$	26,397	$	2,684	$	2,421	$	31,502
Origination	7,696		155		116		7,967
Total revenue	$	34,093	$	2,839	$	2,537	$	39,469

	Three months ended March 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	$	26,553	$	3,208	$	2,184	$	31,945
Origination	7,382		8		126		7,516
Total revenue	$	33,935	$	3,216	$	2,310	$	39,461

Transactions with Related Parties

John G. Aldridge, Jr., the Managing Partner of Aldridge Pite LLP (“Aldridge Pite”), is a member of the Board of Directors of Altisource. Aldridge Pite provides eviction and other real estate related services to the Company and pays for the use of certain of the Company’s technology in connection with providing these services. The Company recognized service revenue of $0.1 million and less than $0.1 million for the three months ended March 31, 2024 and 2023, respectively, relating to services provided to Aldridge Pite.

Contract Balances

Our contract assets consist of unbilled accounts receivable (see Note 3). 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 $1.3 million and $1.9 million for the three months ended March 31, 2024 and 2023, respectively.