InsWeb Corp. (INSW, Financial) filed Quarterly Report for the period ended 2009-11-10.
InsWeb Corp. operates an online insurance marketplace that enables consumers to shop online for automobile, term life, homeowners, renters and individual health insurance and obtain insurance company-sponsored quotes for actual coverage. InsWeb's marketplace brings consumers and insurance companies together online, providing consumers with the insurance they need and insurance companies with the customers they want. InsWeb's service is free to consumers; its principal source of revenues is transaction fees paid by insurance companies. Insweb Corp. has a market cap of $14.4 million; its shares were traded at around $3 with and P/S ratio of 0.4.
Property insurance transaction fees (consisting primarily of lead fees) remained level at $0.9 million for the three months ended September 30, 2009 compared to the same period in 2008, but decreased to $2.7 million for the nine months ended September 30, 2009, from $2.8 million for the comparable period in 2008. Revenue per consumer was $2.77 and $3.14 for the three and nine months ended September 30, 2009, a decrease from $4.06 and $4.62 for the comparable periods in 2008. The decrease in revenue per consumer can be partially attributed to more consumers being acquired through other lead aggregators. Consumers acquired through other aggregators generate less revenue since we are only able to sell these leads to insurance companies that the consumer has not already seen from the other aggregators. We expect revenue per consumer to remain at current levels for the remainder of 2009, as we do not expect significant changes in our marketing sources.
Direct marketing expenses for the three and nine months ending September 30, 2009 decreased to $5.8 million and $17.7 million from $6.5 million and $22.0 million in the comparable periods in 2008. Direct marketing expenses as a percent of total revenues were 65% and 67% for the three and nine months ended September 30, 2009, compared to 72% and 71% for the comparable periods in 2008. Direct marketing expenses per consumer for all products were $1.30 and $1.33 for the three and nine months ended September 30, 2009, a decrease from $2.27 and $2.35 for the comparable periods in 2008. The preceding numbers reflect a significant increase in consumers acquired through InsWeb s agent directory program, with minimal costs associated with the acquisition of these consumers. Also, more consumers were acquired from other aggregators with whom we have revenue sharing arrangements. As mentioned earlier, consumers acquired through other aggregators generate less revenue per consumer. As a result, direct marketing expenses per consumer, excluding consumers acquired through the agent directory, fell to $1.77 and $1.90 for the three and nine months ending September 30, 2009 from $2.59 and $2.75 for the comparable periods in 2008. Compared to the third quarter, direct marketing expenses are expected to be lower during the traditionally slower fourth quarter. Marketing costs per consumer are expected to remain at current levels for the remainder of 2009.
For the nine months ended September 30, 2009, net cash used by operating activities was $1.3 million, primarily consisting of our net loss adjusted for non-cash share-based compensation and depreciation and amortization of property, equipment and intangible assets of $1.0 million. An increase in accounts receivable of $0.8 million and a decrease in accrued expenses of $0.4 million decreased cash provided by operations, but were partially offset by an increase in accounts payable of $0.7 million and a decrease in prepaid expenses and other assets of $0.2 million. For the comparable nine months ended September 30, 2008, net cash used by operating activities was $582,000, primarily due to our net loss of $859,000 as adjusted for non-cash share-based compensation of $576,000, depreciation and amortization of property, equipment and intangible assets of $119,000, an decrease in accounts receivable of $18,000, an increase in prepaid expenses of $356,000 and decrease in accrued expenses of $319,000, offset by an increase in accounts payable of $220,000.
For the nine months ended September 30, 2009, net cash used in investing activities was $2.1 million relating to cash restricted for the use as collateral to obtain a commercial credit line. InsWeb uses this commercial credit line for many of its larger, recurring accounts payable and will earn a cash rebate of approximately 50-95 basis points, dependent upon the purchase volume during the 2009 calendar year. For the comparable nine months ended September 30, 2008, net cash used in investing activities was $606,000 primarily due to purchases of property, equipment and intangibles of $354,000 and notes receivable from employees for $252,000.
For the nine months ended September 30, 2009, net cash provided by financing activities was $45,000, and was primarily attributable to proceeds from our employee stock purchase plan. For the comparable nine month period ended September 30, 2008, net cash used by financing activities was $464,000, representing principally of $850,000 for the cash settlement of equity awards in connection with the departure of the president and COO in June, 2008, offset by proceeds from the exercise of stock options and stock issued from our employee stock purchase plan of $386,000.
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InsWeb Corp. operates an online insurance marketplace that enables consumers to shop online for automobile, term life, homeowners, renters and individual health insurance and obtain insurance company-sponsored quotes for actual coverage. InsWeb's marketplace brings consumers and insurance companies together online, providing consumers with the insurance they need and insurance companies with the customers they want. InsWeb's service is free to consumers; its principal source of revenues is transaction fees paid by insurance companies. Insweb Corp. has a market cap of $14.4 million; its shares were traded at around $3 with and P/S ratio of 0.4.
Highlight of Business Operations:
Automobile insurance transaction fees (consisting of lead fees and click through fees) decreased to $7.3 million and $21.8 million for the three and nine months ended September 30, 2009, from $7.6 million and $26.0 million for the comparable periods in 2008. Revenue per consumer was $2.68 and $2.72 for the three and nine months ended September 30, 2009, a decrease from $3.37 and $3.64 for the comparable periods in 2008. The decrease in revenue per consumer is a direct result of more consumers being acquired through other lead aggregators. Consumers acquired through aggregators generate less revenue since we are only able to sell these leads to insurance companies that the consumer has not already seen from the other aggregators. We expect revenue per consumer to remain at current levels for the remainder of 2009 as we do not expect significant changes in our marketing sources.Property insurance transaction fees (consisting primarily of lead fees) remained level at $0.9 million for the three months ended September 30, 2009 compared to the same period in 2008, but decreased to $2.7 million for the nine months ended September 30, 2009, from $2.8 million for the comparable period in 2008. Revenue per consumer was $2.77 and $3.14 for the three and nine months ended September 30, 2009, a decrease from $4.06 and $4.62 for the comparable periods in 2008. The decrease in revenue per consumer can be partially attributed to more consumers being acquired through other lead aggregators. Consumers acquired through other aggregators generate less revenue since we are only able to sell these leads to insurance companies that the consumer has not already seen from the other aggregators. We expect revenue per consumer to remain at current levels for the remainder of 2009, as we do not expect significant changes in our marketing sources.
Direct marketing expenses for the three and nine months ending September 30, 2009 decreased to $5.8 million and $17.7 million from $6.5 million and $22.0 million in the comparable periods in 2008. Direct marketing expenses as a percent of total revenues were 65% and 67% for the three and nine months ended September 30, 2009, compared to 72% and 71% for the comparable periods in 2008. Direct marketing expenses per consumer for all products were $1.30 and $1.33 for the three and nine months ended September 30, 2009, a decrease from $2.27 and $2.35 for the comparable periods in 2008. The preceding numbers reflect a significant increase in consumers acquired through InsWeb s agent directory program, with minimal costs associated with the acquisition of these consumers. Also, more consumers were acquired from other aggregators with whom we have revenue sharing arrangements. As mentioned earlier, consumers acquired through other aggregators generate less revenue per consumer. As a result, direct marketing expenses per consumer, excluding consumers acquired through the agent directory, fell to $1.77 and $1.90 for the three and nine months ending September 30, 2009 from $2.59 and $2.75 for the comparable periods in 2008. Compared to the third quarter, direct marketing expenses are expected to be lower during the traditionally slower fourth quarter. Marketing costs per consumer are expected to remain at current levels for the remainder of 2009.
For the nine months ended September 30, 2009, net cash used by operating activities was $1.3 million, primarily consisting of our net loss adjusted for non-cash share-based compensation and depreciation and amortization of property, equipment and intangible assets of $1.0 million. An increase in accounts receivable of $0.8 million and a decrease in accrued expenses of $0.4 million decreased cash provided by operations, but were partially offset by an increase in accounts payable of $0.7 million and a decrease in prepaid expenses and other assets of $0.2 million. For the comparable nine months ended September 30, 2008, net cash used by operating activities was $582,000, primarily due to our net loss of $859,000 as adjusted for non-cash share-based compensation of $576,000, depreciation and amortization of property, equipment and intangible assets of $119,000, an decrease in accounts receivable of $18,000, an increase in prepaid expenses of $356,000 and decrease in accrued expenses of $319,000, offset by an increase in accounts payable of $220,000.
For the nine months ended September 30, 2009, net cash used in investing activities was $2.1 million relating to cash restricted for the use as collateral to obtain a commercial credit line. InsWeb uses this commercial credit line for many of its larger, recurring accounts payable and will earn a cash rebate of approximately 50-95 basis points, dependent upon the purchase volume during the 2009 calendar year. For the comparable nine months ended September 30, 2008, net cash used in investing activities was $606,000 primarily due to purchases of property, equipment and intangibles of $354,000 and notes receivable from employees for $252,000.
For the nine months ended September 30, 2009, net cash provided by financing activities was $45,000, and was primarily attributable to proceeds from our employee stock purchase plan. For the comparable nine month period ended September 30, 2008, net cash used by financing activities was $464,000, representing principally of $850,000 for the cash settlement of equity awards in connection with the departure of the president and COO in June, 2008, offset by proceeds from the exercise of stock options and stock issued from our employee stock purchase plan of $386,000.
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