The following is a summary of the Altisource Portfolio Solutions S.A. (ASPS) Q2 2024 Earnings Call Transcript:
Financial Performance:
Altisource reported Q2 2024 service revenue of $36.9 million with an adjusted EBITDA of $4.4 million, and an increase in cash to $29.7 million.
Service revenue in the Servicer and Real Estate segment increased by 16% compared to Q2 2023.
Adjusted EBITDA improved to $11.1 million from $7.4 million in Q2 2023.Year-on-year service revenue overall increased by 11%, with adjusted EBITDA improving by $7.9 million.
Business Progress:
Altisource launched renovation services for one of the largest REO asset owners, receiving 35 renovation referrals anticipated to generate close to $100,000 per property.
Signed agreements with three new foreclosure trustee clients, enhancing its service offerings.
Introduced a homeowners insurance program, partnering with Policygenius, to facilitate easier access and improved loan closing processes.
Opportunities:
Expansion of trustee business and initiation of new renovation and homeowners insurance services are expected to drive future service revenue and EBITDA growth.
Sales wins in the Servicer and Real Estate segments anticipated to generate $15.3 million annually once fully ramped.
Risks:
The market continues to experience historically low mortgage delinquency rates and low origination volume, potentially impacting service demands.
Consumer financial pressures and higher home inventory may lead to increased foreclosures affecting recent loan cohorts with high debt levels.
More details: Altisource Portfolio IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
