REVENUE

6 Months Ended

Jun. 30, 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 June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Service revenue	$	36,863	$	33,173	$	73,754	$	70,244
Reimbursable expenses	2,223		2,049		4,760		4,359
Non-controlling interests	35		13		76		93
Total	$	39,121	$	35,235	$	78,590	$	74,696

Disaggregation of Revenue

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

	Three months ended June 30, 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	$	26,494	$	2,531	$	2,099	$	31,124
Origination	7,714		159		124		7,997
Total revenue	$	34,208	$	2,690	$	2,223	$	39,121
	Three months ended June 30, 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	$	22,538	$	2,380	$	1,930	$	26,848
Origination	8,262		6		119		8,387
Total revenue	$	30,800	$	2,386	$	2,049	$	35,235
	Six months ended June 30, 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	$	52,891	$	5,215	$	4,520	$	62,626
Origination	15,410		314		240		15,964
Total revenue	$	68,301	$	5,529	$	4,760	$	78,590
	Six months ended June 30, 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	$	49,091	$	5,588	$	4,114	$	58,793
Origination	15,644		14		245		15,903
Total revenue	$	64,735	$	5,602	$	4,359	$	74,696

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 less than $0.1 million for the three and six months ended June 30, 2024 and 2023, respectively, of service revenue 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 $2.2 million and $2.8 million for the six months ended June 30, 2024 and 2023, respectively ($0.9 million for the second quarter of 2024 and 2023).