NASDAQ$ASPS

Altisource Portfolio Sol · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced financial results for the first quarter of 2023, showing improvement in Adjusted EBITDA and gross profit margins compared to the first quarter of 2022, driven by revenue growth in pre-foreclosure solutions, cost savings measures, and an India tax refund.

Altisource reported a strong start to 2023 with improved financial performance compared to the previous year. The company's Adjusted EBITDA was $1.5 million, and gross profit margins reached 23%, driven by revenue growth in pre-foreclosure solutions, cost savings measures, and an India tax refund.

  • Adjusted EBITDA improved by $5.6 million compared to Q1 2022.
  • Gross profit margins increased by 800 basis points compared to Q1 2022.
  • Revenue growth was driven by pre-foreclosure solutions in the Servicer and Real Estate segment.
  • The company benefited from cost savings measures implemented in 2022 and early 2023.

Headline financials

Total Revenue

$39.5M

Previous: $39.5M-0.1%
EPS (adj)

-$0.38

Previous: -$0.58+34.5%
Adjusted EBITDA

$1.47M

No prior period
Net Debt

$184M

No prior period
Capital Expenditures

$0.00

Previous: -$74K+100.0%
Free Cash Flow

-$12.9M

Previous: -$12.1M-6.3%
Net Income

-$12.9M

Previous: -$12M-7.0%
Operating Income

-$3.59M

Previous: -$8.33M+56.9%
Gross Profit

$8.5M

Previous: $5.65M+50.6%
Cash & Equivalents

$43.1M

Previous: $80M-46.1%
Total Assets

$178M

Previous: $240M-25.9%
Stock-Based Comp

$1.45M

Previous: $1.29M+12.0%

Revenue & EPS history

Altisource · Revenue · Quarterly

$39.5M

Q1 2023-0.1%vs Q1 2022
Beat estimate in 4 of 12 quarters(33%)
ActualEstimate

Forward guidance

Altisource is well-positioned to return to year-over-year revenue growth and generate positive Adjusted EBITDA in 2023. Growth is expected in the Servicer and Real Estate business due to market tailwinds, sales pipeline, and scale. The Origination segment is expected to return to revenue growth and improved Adjusted EBITDA through sales progress and efficiency initiatives.

Tailwinds

  • Anticipate revenue and Adjusted EBITDA growth from market tailwinds in the Servicer and Real Estate business.
  • Expect growth from sales pipeline and wins in the Servicer and Real Estate business.
  • Anticipate growth from scale in the Servicer and Real Estate business.
  • Maintaining a strong sales pipeline in the Origination business.
  • Making good progress converting sales wins to revenue in the Origination business.

Headwinds

  • Forecasted to be a very difficult origination market.
  • Impacts of the COVID-19 pandemic.
  • Governmental moratoriums.
  • Loss mitigation measures that affect the timing of the recovery of the market for default-related services.
  • Industrywide foreclosure initiations were 10% lower for the first quarter of 2023, compared to the same period in 2022

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.8%

Avg return

Earnings day

-4.9%

Avg return

5 days after

-4.0%

Avg return

30 days after

41%

27 / 66 earnings

Positive

+28.6%

Q1 2015

Best reaction

-34.1%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%+3.4%-9.2%
Q4 2025+1.3%-8.0%-4.1%
Q3 2025-0.4%-16.6%-20.5%
Q2 2025-7.6%+3.6%+7.7%
Q1 2025-0.2%-12.0%-14.5%
Q4 2024+18.7%+22.7%+1.3%
Q3 2024-15.8%-11.5%-45.3%
Q2 2024+11.7%+2.3%-6.2%
Q1 2024+15.9%+17.1%+0.6%
Q4 2023-4.1%-9.6%-41.3%
Q3 2023-17.3%-14.5%-2.7%
Q2 2023-17.7%-17.2%-32.7%
Q1 2023+3.0%+13.5%+28.4%
Q4 2022-0.4%-6.9%-19.0%
Q3 2022+8.7%+32.4%+33.0%
Q2 2022-3.5%-0.3%-1.1%
Q1 2022+4.9%+2.3%+5.0%
Q4 2021-8.5%-12.3%-1.4%
Q3 2021-7.5%-6.9%-24.0%
Q2 2021+10.7%+8.9%+25.1%
Q1 2021-5.8%-9.3%+0.1%
Q4 2020-0.4%-1.4%-1.8%
Q3 2020-0.1%+3.2%+17.1%
Q2 2020-34.1%-36.1%-24.0%
Q1 2020-0.2%-12.0%+77.4%
Q4 2019-32.9%-45.6%-55.5%
Q3 2019-16.8%-31.0%-22.2%
Q2 2019-3.5%-2.0%-11.2%
Q1 2019-2.2%+0.3%-5.3%
Q4 2018-0.3%+1.6%-4.3%
Q3 2018+1.6%-0.4%-16.1%
Q2 2018-5.8%-4.9%+5.9%
Q1 2018+5.0%+10.8%+10.0%
Q4 2017-3.4%-2.4%-7.1%
Q3 2017+0.4%+3.2%+9.1%
Q2 2017-2.4%-1.3%-1.3%
Q1 2017-0.4%-7.1%-4.6%
Q4 2016-24.8%-22.9%-7.9%
Q3 2016-12.1%-15.1%-5.7%
Q2 2016-13.3%-15.9%+9.9%
Q1 2016+6.5%
Q4 2015+10.0%
Q3 2015-10.3%
Q2 2015+21.9%
Q1 2015+28.6%
Q4 2014+5.3%
Q3 2014-0.2%
Q2 2014+1.4%
Q1 2014-8.4%
Q4 2013-0.6%
Q3 2013+9.0%
Q2 2013+19.8%
Q1 2013+9.7%
Q4 2012+4.3%
Q3 2012-7.2%
Q2 2012-0.7%
Q1 2012+1.0%
Q1 2011+1.0%
Q4 2009+10.5%
Q4 2011+10.5%
Q3 2011+8.1%
Q3 2010+8.1%
Q2 2011-4.8%
Q4 2010-4.8%
Q2 2010-4.8%
Q1 2010-0.9%

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