InsWeb Raises Revenue Outlook for Second Half of 2000

Updating its previously announced revenue expectations for the second half of fiscal 2000, Redwood City, Calif.-based InsWeb raised its previous outlook of $8 million to now exceed $9 million. Hussein Enan, InsWeb CEO, credits a faster geographic expansion by four of its top auto insurers as the principal reason for the higher revenues.

In addition to reducing its workforce and implementing other cost-cutting measures, one other initiative designed to bring the company to profitability includes moving all InsWeb operations, including its insurance agency and call center facilities previously located in Westlake Village, Calif., to the Sacramento area.

InsWeb Corp. reported financial results for the second quarter that ended June 30, 2000. Revenues for the second quarter of 2000 were $4.8 million. This compares to revenues of $5.1 million for the second quarter of 1999. InsWeb reported a net loss for the second quarter of $12.8 million, or $0.38 per share, excluding charges of $4.4 million for the discontinuation of Benelytics Inc. following the Company’s previously announced strategic partnership with eHealthInsurance.com, and approximately $4.4 million for restructuring.

This compares to a net loss of $9.0 million, or $0.32 per pro forma share, for the second quarter of 1999. Including the charges, InsWeb’s net loss was $21.6 million, or $0.62 per share. The Company expects to incur $1 million in additional restructuring charges over the next three quarters.