Online insurance marketplace InsWeb Corporation announced that net loss for the second quarter ending June 30, 2001, would be wider than consensus estimates due to ‘disappointing’ growth in its auto insurance offering.
The Sacramento-based 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 percent 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.
Mark Guthrie, president and COO of InsWeb, said that consumer demand remains strong; “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 enables Internet consumers to compare multiple, actionable quotes for auto, term life, health, homeowners, renters and condominium insurance.
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