NASDAQ$ASPS

Altisource Portfolio Sol · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Altisource reported a net loss attributable to Altisource of $(18.5) million and service revenue of $44.0 million.

Altisource reported a challenging operating environment but expressed excitement about the future of its Origination and Default businesses. The Origination business saw year-over-year growth, while the Default business was impacted by the pandemic but is expected to grow in 2022 and stabilize in 2023.

  • Origination business revenue grew by 16% compared to the second quarter of 2020.
  • The Federal government extended foreclosure and eviction moratoriums by one month through July 2021.
  • CFPB finalized rules prohibiting foreclosure initiations until January 1, 2022, with exceptions.
  • Second quarter 2021 cash operating costs were $6.8 million lower than first quarter 2021 cash operating costs.

Headline financials

Total Revenue

$46M

Previous: $95.3M-51.7%
EPS (adj)

-$0.69

Previous: -$0.76+9.2%
Capital Expenditures

-$693K

Previous: -$1.47M+52.7%
Free Cash Flow

-$19.3M

Previous: -$36.3M+46.7%
Net Income

-$18.7M

Previous: -$34.9M+46.5%
Operating Income

-$14.6M

Previous: -$17.8M+18.0%
Gross Profit

$2M

Previous: $12.7M-84.2%
Cash & Equivalents

$35.3M

Previous: $68.2M-48.2%
Total Assets

$222M

Previous: $328M-32.4%
Stock-Based Comp

$641K

Previous: $1.93M-66.8%

Revenue & EPS history

Altisource · Revenue · Quarterly

$46M

Q2 2021-51.7%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Altisource anticipates a return to growth in 2022, particularly in the Origination and Default businesses. The company is evaluating options to enhance shareholder value, including potential strategic transactions related to the Origination business.

Tailwinds

  • Origination business's unique distribution engine
  • Mission critical solutions
  • Strong growth prospects in the Origination business
  • Potential growth in the Default business in 2022
  • Stabilization of the Default business during 2023

Headwinds

  • Challenging operating environment
  • Impact of the pandemic on the Default business
  • Foreclosure and eviction moratoriums affecting the Default business
  • Uncertainty regarding the timing of the recovery of the default market
  • No assurance that exploration of ways to enhance shareholder value will result in any transaction

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 Q2 2021

Historical avgQ2 2021

-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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