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William.Carter


Altisource Portfolio Solutions Achieves Strongest Quarterly Performance Since 2020

2024-04-26

Altisource Portfolio Solutions (ASPS) recently conducted an earnings call, during which key executives and analysts deliberated on the company's performance and future outlook. Despite facing market challenges, Altisource succeeded in achieving growth by proactively enhancing their adjusted EBITDA and service revenue. Notably, the company reported generating $4.6 million of adjusted EBITDA in the first quarter of 2024, marking its strongest quarterly performance since 2020.

Looking towards the future, Altisource projected substantial growth rates for revenue and adjusted EBITDA, with expectations of a 23% revenue increase and a $21 million enhancement in adjusted EBITDA. Over the next three years, the company anticipates an approximate $52 million rise in adjusted EBITDA. Altisource also set its sights on achieving quarter-over-quarter growth in service revenue and adjusted EBITDA, driven by securing new business contracts and maintaining a reduced cost base.

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Altisource's various segments, including Service and Real Estate, Origination, and Corporate, all exhibited promising performance in the first quarter of 2024. The Origination segment notably outperformed the market with revenue growth and improved adjusted EBITDA, while the Corporate segment also displayed positive results by reducing its adjusted EBITDA loss compared to previous quarters.

The company's future outlook appears optimistic, with a strategic focus on capitalizing on current sales victories and growth opportunities. Altisource aims to further enhance its revenue and earnings, particularly as market conditions stabilize. They foresee additional sales successes translating into revenue growth and improved adjusted EBITDA margins.

During the earnings call, discussions also revolved around factors influencing mortgage delinquency rates, the company's sales pipeline, profitability drivers, and future expectations. Altisource reiterated its commitment to enhancing performance by leveraging its suite of products and solutions such as Deal Roadshow, Evercall, and Compliance to drive success.

In conclusion, Altisource Portfolio Solutions showcased resilience and strategic planning in navigating market challenges, positioning itself for sustained growth and success in the ever-evolving business landscape.