Revenues are Expected to Exceed $9 Million
REDWOOD CITY, Calif., Sept. 27, 2000 – InsWeb Corp. (Nasdaq: INSW), one of the foremost providers of online insurance services, today raised its revenue outlook for the second half of fiscal 2000. Updating its previously announced revenue expectations of $8 million for the six months ending Dec. 31, 2000 (announced July 20, 2000), the Company now expects revenues for that period to exceed $9 million.
“We are pleased to offer more clarity on our financial outlook for the remainder of the year,” said Hussein Enan, chief executive officer of InsWeb. “The principal reason for the higher revenues is a faster geographic expansion by four of our top automobile insurers. Moreover, those insurers provide quotes online, thus accelerating InsWeb’s migration from a shopping environment to a buying environment.”
This fall, InsWeb is scheduled to begin moving all operations, including its insurance agency and call center facilities previously located in Westlake Village, Calif., to the Sacramento area.
Enan commented further on the initiatives underway designed to bring the Company to profitability: “While early in the process, our efforts to restructure the Company are proceeding on or ahead of plan. With a cash position of more than $66 million as of June 30, we believe that we have sufficient cash resources to achieve our goals. We look forward to reporting more on our progress during our scheduled announcement of InsWeb’s third-quarter financial results.”
About InsWeb InsWeb enables online consumers to compare free, multiple quotes sponsored by more than 40 of the nation’s top-rated insurers. Featuring auto, term life, health, homeowners, renters, condo and other insurance offerings, InsWeb provides live customer service, interactive tools and research capabilities, and is accessible from more than 200 leading sites, including Yahoo!, MSN, Snap.com, LookSmart, LowerMy Bills, E*TRADE and NextCard. The company’s technology powers InsWeb Japan K.K., a joint venture co-founded with SOFTBANK Finance Corp. Headquartered in Redwood City, Calif., InsWeb is accessible at www.insweb.com.
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; 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: the Company’s ability to timely implement its relocation and restructuring plan; variations in consumer demand or acceptance; the willingness of insurance companies to offer their products 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 binding online, policy fulfillment and other agency based services; implementation and acceptance of new initiatives in the U.S. and abroad, such as InsWeb Japan; insurance 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.