SACRAMENTO, Calif., June 8, 2001 – InsWeb Corporation (Nasdaq: INSW), the nation’s top-rated online insurance marketplace, announced today financial guidance for the second quarter ending June 30, 2001.
The Company expects revenues for the second quarter to be between $5.3 million and $5.6 million, compared to revenues of $4.8 million for the same quarter last year, and compared to $7.2 million in the first quarter ended March 31, 2001. As previously disclosed, the Company suspended online health insurance quoting in February 2001, which accounted for 22% of the first quarter’s revenues.
Operating expenses in the second quarter are expected to be between $13.3 million and $13.6 million, down from $18.6 million in the second quarter of 2000 and relatively flat compared to the first quarter’s operating expenses of $13.4 million. The Company estimates that the net loss for the quarter will be between $7.0 million and $7.4 million, representing a net loss per share of between $0.16 and $0.18.
“We are pleased to see continued strength in consumer demand,” said Mark Guthrie, President and COO of InsWeb. “Unique visitors, completed shopping sessions and submitted leads remain strong, especially considering that our second quarter is generally slower than our first, due to the seasonality of the personal-lines insurance market. However, the rate of expansion in our auto insurance offering this quarter has been disappointing. While we continue to grow our marketplace, delays by a few partners have impacted revenues this quarter.”
InsWeb is scheduled to report financial results for the second quarter ended June 30, 2001, on Thurs., July 19, 2001.
InsWeb (Nasdaq: INSW) enables Internet consumers to compare multiple, actionable quotes for auto, term life, health, homeowners, renters and condominium insurance. The nation’s top-rated online insurance marketplace also provides live customer service, interactive tools and independent research. Headquartered in Sacramento, Calif., InsWeb is accessible at www.insweb.com and through such prominent sites as MSN, Quicken.com and Yahoo!
This news release contains forward-looking statements reflecting management’s current forecast of certain aspects of the Company’s future. It is based on current information, which we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements include statements regarding: projected future revenues and financial position; optimism about the results of certain strategic and consumer initiatives; product and technological implementations; and projected expenditures and growth. The Company’s actual results might differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with the Company’s business, which include, but are not limited to: variations in consumer demand or acceptance; the willingness and capability of insurance companies to offer their products or instant quotes over the Internet; further changes in the Company’s relationships with existing insurance companies and/or strategic partners; the Company’s ability to attract and integrate new insurance companies and strategic partners; implementation of competing Internet strategies by existing and potential insurance Company participants; implementation and acceptance of new product or service offerings, such as annuities, binding online, policy fulfillment and other agency based services; the outcome of litigation in which the Company is a party; implementation and acceptance of new initiatives in the U.S. and abroad, such as InsWeb Japan; insurance and financial services industry regulation; competition in all aspects of the Company’s business; fluctuations in operating results; or other unforeseen factors. The forward-looking statements should be considered in the context of these and other risk factors disclosed in the Company’s filings with the Securities and Exchange Commission.
“INSWEB” is a registered service mark of InsWeb Corporation. All marks above are those of InsWeb Corporation, except for those of insurance carriers, brokers, agents, industry organizations, financial institutions, online partners, service providers, other mentioned companies and educational institutions, which are the marks of their respective entities.