Q2 2024 Altisource Portfolio Solutions SA Earnings Call Transcript
Key Points
- Altisource Portfolio Solutions SA (ASPS) reported a strong second quarter with $36.9 million in service revenue and $4.4 million of adjusted EBITDA.
- Service revenue in the Servicer and Real Estate segment grew by 16% compared to the same quarter in 2023.
- Adjusted EBITDA margins improved to 11.9% in the second quarter of 2024 compared to negative 10.5% in the second quarter of 2023.
- The company won new business estimated to generate $15.3 million in annual revenue once fully ramped over the next couple of years.
- ASPS launched a renovation business and received over 35 renovation referrals, which are expected to generate average revenue of close to $100,000 per property.
- Service revenue in the Origination segment declined by 5% compared to the same quarter in 2023.
- Adjusted EBITDA and adjusted EBITDA margins declined modestly compared to the first quarter due to approximately $600,000 of first quarter net nonrecurring benefits.
- The sales pipeline declined compared to last quarter, reflecting significant sales wins and the addition of earlier stage opportunities with lower assigned win probability.
- The macroeconomic environment remains challenging with early signs of consumer financial stress, including declining consumer savings and rising credit card debt.
- Despite the strong performance, the company faces uncertainty due to historically low mortgage delinquency rates and low origination volume.
Good day, and thank you for standing by. Welcome to the Altisource Portfolio Solutions second-quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Michelle Esterman, Chief Financial Officer. Please go ahead.
Thank you, Operator. We first want to remind you that the earnings release Form 10-Q and quarterly slides are available on our website at www.altisource.com. Please provide additional information, investors may find useful.
Our remarks today include forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ. Financial projections and scenarios are expressly qualified as forward looking statements and as with other forward-looking statements should not be unduly relied upon.
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