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SEGMENT REPORTING | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING Overview Our business segments are based upon our organizational structure, which focuses primarily on the services offered, and are consistent with the internal reporting used by our Chief Executive Officer (our chief operating decision maker) to evaluate operating performance and to assess the allocation of our resources. Effective January 1, 2022, our reportable segments changed as a result of a change in the way our Chief Executive Officer (our chief operating decision maker) manages our businesses, allocates resources and evaluates performance, and the related changes in our internal organization. We now report our operations through two reportable segments: Servicer and Real Estate and Origination. In addition, we report Corporate and Others separately. Prior to the January 1, 2022 change in reportable segments, the Company operated with one reportable segment (total Company). Prior year comparable period segment disclosures have been restated to conform to the current year presentation. The Servicer and Real Estate segment provides loan servicers and real estate investors with solutions and technologies that span the mortgage and real estate lifecycle. The Origination segment provides originators with solutions and technologies that span the mortgage origination lifecycle. Corporate and Others includes Pointillist (sold on December 1, 2021), interest expense and costs related to corporate functions including executive, infrastructure and certain technology groups, finance, law, compliance, human resources, vendor management, facilities, risk management, as well as eliminations between reportable segments. Revenue Descriptions of our principal revenue generating activities are as follows: Servicer and Real Estate •For property preservation and inspection services and payment management technologies, we recognize transactional revenue when the service is provided. •For vendor management transactions, we recognize revenue over the period during which we perform the services. •For loan disbursement review services, we recognize revenue over the period during which we perform the processing services with full recognition upon completion of the disbursements. •For foreclosure trustee services, we recognize revenue over the period during which we perform the related services, with full recognition upon completion and/or recording the related foreclosure deed. We use judgment to determine the period over which we recognize revenue for certain of these services. •For the real estate auction platform, real estate auction and real estate brokerage services, we recognize revenue on a net basis (i.e., the commission on the sale) as we perform services as an agent without assuming the risks and rewards of ownership of the asset and the commission earned on the sale is a fixed percentage or amount. •For SaaS based technology to manage REO, we recognize revenue over the estimated average number of months the REO are on the platform or ratably over the contract period. We generally recognize revenue for professional services as services are provided. •For loan servicing technologies, we recognized revenue based on the number of loans on the system. We generally recognize revenue from professional services over the contract period. •Reimbursable expenses revenue related to property preservation and inspection services, real estate sales title services and foreclosure trustee services is included in revenue with an equal amount recognized in cost of revenue. These amounts are recognized on a gross basis, principally because generally we have control over selection of vendors and the vendor relationships are with us, rather than with our customers. Origination •For the majority of the services we provide, we recognize transactional revenue when the service is provided. We recognize membership fees from Lender One members ratably over the term of membership. •For vendor management oversight software-as-a-service (“SaaS”), we recognize revenue over the period during which we perform the services. Corporate and Others •For our customer journey analytics platform (sold on December 1, 2021), we recognized revenue primarily based on subscription fees. We recognized revenue associated with implementation services and maintenance services ratably over the contract term. During the years ended December 31, 2022 and 2021, Ocwen was our largest customer. Revenue from Ocwen as a percentage of segment and consolidated revenue was as follows:
|  | 2022 |  | 2021
Servicer and Real Estate |  | 53 | % |  | 49 | %
Origination |  | — | % |  | — | %
Corporate and Others |  | — | % |  | — | %
Consolidated revenue |  | 41 | % |  | 31 | %
Disaggregation of Revenue Disaggregation of total revenues by segment and major source was as follows for the years ended December 31:
|  | 2022
(in thousands) |  | Revenue recognized when services are performed or assets are sold |  | Revenue related to technology platforms and professional services |  | Reimbursable expenses revenue |  | Total revenue
Servicer and Real Estate |  | $ | 101,716 |  |  | $ | 10,416 |  |  | $ | 7,529 |  |  | $ | 119,661 |
Originations |  | 32,915 |  |  | 34 |  |  | 510 |  |  | 33,459 |
For the year ended December 31, 2022 |  | $ | 134,631 |  |  | $ | 10,450 |  |  | $ | 8,039 |  |  | $ | 153,120 |
|  | 2021
(in thousands) |  | Revenue recognized when services are performed or assets are sold |  | Revenue related to technology platforms and professional services |  | Reimbursable expenses revenue |  | Total revenue
Servicer and Real Estate |  | $ | 98,610 |  |  | $ | 9,180 |  |  | $ | 5,846 |  |  | $ | 113,636 |
Originations |  | 59,245 |  |  | 42 |  |  | 709 |  |  | 59,996 |
Corporate and Others |  | — |  |  | 4,821 |  |  | — |  |  | 4,821 |
For the year ended December 31, 2021 |  | $ | 157,855 |  |  | $ | 14,043 |  |  | $ | 6,555 |  |  | $ | 178,453 |
Financial Information Financial information for our segments is as follows:
|  | For the year ended December 31, 2022
(in thousands) |  | Servicer and Real Estate |  | Origination |  | Corporate and Others |  | Consolidated Altisource
Revenue |  | $ | 119,661 |  |  | $ | 33,459 |  |  | $ | — |  |  | $ | 153,120 |
Cost of revenue |  | 81,148 |  |  | 32,052 |  |  | 18,105 |  |  | 131,305 |
Gross profit (loss) |  | 38,513 |  |  | 1,407 |  |  | (18,105) |  |  | 21,815 |
Selling, general and administrative expenses |  | 12,057 |  |  | 8,825 |  |  | 33,873 |  |  | 54,755 |
Loss on sale of businesses |  | — |  |  | — |  |  | 242 |  |  | 242 |
Income (loss) from operations |  | 26,456 |  |  | (7,418) |  |  | (52,220) |  |  | (33,182) |
Total other income (expense), net |  | 4 |  |  | — |  |  | (14,389) |  |  | (14,385) |
Income (loss) before income taxes and non-controlling interests |  | $ | 26,460 |  |  | $ | (7,418) |  |  | $ | (66,609) |  |  | $ | (47,567) |
|  | For the year ended December 31, 2021
(in thousands) |  | Servicer and Real Estate |  | Origination |  | Corporate and Others |  | Consolidated Altisource
Revenue |  | $ | 113,636 |  |  | $ | 59,996 |  |  | $ | 4,821 |  |  | $ | 178,453 |
Cost of revenue |  | 87,427 |  |  | 49,012 |  |  | 34,927 |  |  | 171,366 |
Gross profit (loss) |  | 26,209 |  |  | 10,984 |  |  | (30,106) |  |  | 7,087 |
Selling, general and administrative expenses |  | 12,557 |  |  | 5,702 |  |  | 48,790 |  |  | 67,049 |
Gain on sale of businesses |  | — |  |  | — |  |  | (88,930) |  |  | (88,930) |
Income from operations |  | 13,652 |  |  | 5,282 |  |  | 10,034 |  |  | 28,968 |
Total other income (expense), net |  | 8 |  |  | — |  |  | (13,691) |  |  | (13,683) |
Income (loss) before income taxes and non-controlling interests |  | $ | 13,660 |  |  | $ | 5,282 |  |  | $ | (3,657) |  |  | $ | 15,285 |
Total Assets Total assets for our segments are as follows:
(in thousands) |  | Servicer and Real Estate |  | Origination |  | Corporate and Others |  | Consolidated Altisource
Total assets: |  |  |  |  |  |  |  |
December 31, 2022 |  | $ | 63,696 |  |  | $ | 53,984 |  |  | $ | 77,325 |  |  | $ | 195,005 |
December 31, 2021 |  | 61,832 |  |  | 59,741 |  |  | 136,235 |  |  | 257,808 |
Goodwill Changes in goodwill during the years ended December 31, 2022 and 2021 are summarized below:
(in thousands) |  | Servicer and Real Estate |  | Origination |  | Corporate and Others |  | Total
Balance as of January 1, 2021 |  | $ | 30,681 |  |  | $ | 25,279 |  |  | $ | 17,889 |  |  | $ | 73,849 |
Write-off (1) |  | — |  |  | — |  |  | (17,889) |  |  | (17,889) |
Balance as of December 31, 2021 and 2022 |  | $ | 30,681 |  |  | $ | 25,279 |  |  | $ | — |  |  | $ | 55,960 |
______________________________________ |  |  |  |  |  |  |  |
(1) During 2021, the Company sold its equity interest in Pointillist (See Note 4 for additional information) which had $17.9 million of goodwill attributed to it. The amount of goodwill attributable to Pointillist was based on the relative fair values of Pointillist and the Company excluding Pointillist. Pointillist was determined to be a business within the Company’s existing reporting unit. We determined that each reportable segment represents a reporting unit. Goodwill was allocated to each reporting unit based on the relative fair value of each of our reporting units.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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