| To: Jack Hartmann who wrote (31) | 10/19/1999 3:40:00 PM | | From: Jack Hartmann | | | |
Record policies issues, record rev, record losses.
Quotesmith.com Reports Third Quarter Results
Monday, October 18, 1999 05:50 PM Mail this article to a friend
Record Revenues, Policy Sales and Quote Activity Posted -- Revenues increased to $2.4 million, a 49% increase over Q2 1999 -- Policies sold increased to 5,053, a 60% increase over Q2 1999 -- Total quotes reached 693,000, an 89% increase over Q2 1999
DARIEN, Ill., Oct. 18 /PRNewswire/ -- Quotesmith.com, Inc., (Nasdaq: QUOT), the Internet insurance price comparison service that enables consumers to save money by obtaining instant quotes from more than 300 leading insurance companies and to have the ability to buy from any company, today reported record revenue of $2.4 million for the third quarter ended September 30, 1999, a 75% increase over revenue of $1.3 million reported for the same period last year and a 49% increase over the revenues of $1.6 million reported for the second quarter of 1999.
Net loss for the third quarter ended September 30, 1999 was $3.9 million, or $0.23 per share, compared with a net loss of $115,000, or $0.01 per share in the same period last year. The company reported a net loss of $1.7 million or $0.12 per share in the second quarter of 1999.
Increased insurance shopper activity at Quotesmith.com resulted in a record 5,053 policies sold in the third quarter of 1999 representing an increase of 81% from the 2,788 policies sold in the same period last year. Sequential quarterly growth of policies sold in the third quarter of 1999 amounted to an increase of 60% from the 3,165 policies sold in the second quarter of 1999.
In reviewing the third quarter, Chairman and CEO Robert Bland commented, "We hit on all cylinders during the third quarter of 1999. We raised gross proceeds of $63 million in our initial public offering, we sold a record 5,000 plus policies, we recorded record quote activity including several days of having exceeded 10,000 quotes per day and during peak times, often processed up to one quote every four seconds. The momentum we achieved reflects the appeal of the Quotesmith.com insurance price comparison service because we give insurance shoppers the widest selection of insurance quotes and the freedom to apply to the company of their choice."
"Our IPO proceeds will enable us to invest aggressively in building our business, brand and customer base, and to enhance our product and service offerings. Because we own and operate the largest and most comprehensive insurance pricing databases in America, we're uniquely positioned to distribute insurance online in a revolutionary, customer-focused fashion. We believe that our new capital, combined with our seasoned management team and our growing insurance price comparison databases, will reinforce our momentum as the leading online distributor of insurance and create additional brand name awareness and customer flow for Quotesmith.com and our participating insurance companies. Our emergence as the leading online insurance information site for consumers and small business owners will further accelerate the adoption of online insurance buying by an increasing range of customers. For the rest of 1999 and 2000 we expect to invest heavily in building our brand," continued Mr. Bland.
Advertising expenditures were $4.6 million in the third quarter of 1999, compared to $482,000 in the comparable quarter of 1998.
Average daily quotes processed for the third quarter of 1999 were 7,535, a 162% increase over the 2,875 average daily quotes recorded during the third quarter of 1998 and a 87% increase over the 4,023 average daily quotes recorded during the second quarter of 1999. Reported quotes do not include automobile insurance quotes, which are provided by third parties.
Commenting on the financial results for the quarter, Mr. Bland indicated "Quotation activity is our lead indicator for revenue growth. Although there is a time lag of as much as 180 days between quote activity and the issuance of a policy, we are optimistic that we will be able to convert a substantial number of these quote requests into revenue in the coming quarters. In the current quarter, we also saw a substantial increase in our quote-to-policy conversion ratio resulting in an incremental 900 paid policies. Our conversion ratio has fluctuated in the past and we are reluctant to predict a trend; however, even if the entire impact of the increased conversion ratio is extracted from our results, we substantially outperformed analysts' expectations for the third quarter demonstrating the strong upward momentum of our business."
Average first year commissions realized was $429 per policy sold in the third quarter of 1999 vs. $411 in the third quarter of 1998. Average first year commissions received in the second quarter of 1999 were $456 per policy. The Company explained that the decline in first year commissions realized during third quarter was due primarily to declining term life premiums.
About Quotesmith.com
Quotesmith.com is the Internet-based insurance price comparison service which allows consumers to save money by obtaining instant insurance quotes from over 300 leading insurance companies. Quotesmith.com owns and operates the largest and most comprehensive insurance price-comparison service in America. The Company provides up-to-the-day accurate quotes for several lines of insurance including auto, motorcycle, life, individual & family medical, group medical, dental, Medicare supplement and annuities. The Company's Web site allows insurance shoppers to instantly navigate the U.S. insurance markets with confidence and clarity.
In addition to providing the widest selection of instant insurance quotes available from any single source, the Quotesmith.com site also allows visitors to purchase insurance from the company of their choice without having to deal with a commissioned salesperson.
Our flagship product, term life, is available to residents of all 50 states. The Quotesmith.com insurance web site and our customer service department provide useful tools to assist insurance shoppers. A typical Quotesmith.com quote comes complete with two full pages of policy coverage and reference information, including published underwriting guidelines, in order to optimize and match each individual with the best policy possible. Another unique feature is that every Quotesmith.com term life quote also shows the latest independent ratings from A.M. Best, Duff & Phelps, Moody's, Standard & Poor's and Weiss Ratings, Inc.
Quotesmith.com is committed to providing the most comprehensive and useful insurance information experience on the Internet. The Company electronically collects consumer demand for coverage and can rapidly communicate such demand directly with insurance companies in an efficient manner. The Quotesmith.com service empowers insurance buyers with near-perfect market information (including knowledge of potential savings) which is instant, easy to use, up- to-the-day accurate and not available from any other single source. Quotesmith.com also provides complete, toll-free quote-to-policy-delivery customer service through the use of in-house, insurance-experienced, salaried representatives.
As detailed at www.quotesmith.com, the Company offers visitors two unique guarantees: View the lowest term life premiums in America or receive $500 cash, plus every quote is guaranteed accurate or you will receive a $500 cash reward.
Quotesmith.com completed a $63 million initial public offering in August 1999. The Company's shares trade on the Nasdaq Exchange under the symbol "QUOT". Intuit Inc. (Nasdaq: INTU) owns approximately 7 percent of the outstanding stock of Quotesmith.com, Inc. |
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| To: Topannuity who wrote () | 10/20/1999 8:37:00 PM | | From: Jack Hartmann | | | | |
Something popped on QUOT but not sure what it is. Closed at 7 3/8 on 199K volume. Seven institutional buy interest messages on Iwatch including a staggering 800K. One sell interest message. Never seen a message for QUOT above 250K in 2 months. No news. 40K order after close went in at 7 1/2! Dammit, what the hells going on. Jack |
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| To: Jack Hartmann who wrote (34) | 10/23/1999 12:23:00 PM | | From: Jack Hartmann | | | |
Oct. 21 (Bloomberg Data) -- Quotesmith.com Inc. (QUOT US) t Keith A. Menzel at John G. Kinnard & Co. gave company 12 to 18-month target price of $ 21 per share.
What's this 12-18 month stuff. I see $10+ in six. QUOT earnings have to be stronger for higher and long range forecast. Jack |
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| To: Topannuity who wrote () | 11/1/1999 7:49:00 PM | | From: Jack Hartmann | | | |
Princeton, New Jersey, Nov. 1 (Bloomberg Data) -- Quotesmith.com Inc.
(QUOT US) was rated new near-term ``buy' by analyst Donald Cunningham at
Gilmour & Associates.
--Donna McDonald in Princeton, New Jersey, (609)279-3731
15,500 volume, no movement in stock price. I see that rec really helped. Wonder what the target price was. Jack |
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| To: Topannuity who wrote () | 11/2/1999 2:19:00 PM | | From: Jack Hartmann | | | |
Quotesmith.com Reports Record 16,000 Insurance
Quotes in a Single Day
PR Newswire - November 02, 1999 13:00
DARIEN, Ill., Nov. 2 /PRNewswire/ -- Quotesmith.com, Inc. (Nasdaq: QUOT), the
Internet-based service that enables consumers to obtain instant quotes from over 300
companies and to buy from the company of their choice, announced that its Web site processed
a record 16,600 quotes yesterday, marking the first time that the quote volume has exceeded
16,000 quotes in a single day. This new single-day record compares to an average of 5,100
quotes per day recorded during the first three quarters of 1999.
"This 16,000-quote milestone, the first such day in our history, is in line with our marketing
expenditures and validates our business proposition that insurance shoppers want instant and
accurate insurance quotes from a wide variety of companies from a single source without having
to surf multiple Web sites. Our service allows insurance shoppers and business owners to
obtain insurance quotes from over 300 leading companies in seconds and represents a new and
more efficient way to buy insurance. We're delighted to see this enthusiasm for our insurance
price comparison service," remarked Quotesmith.com President and founder Robert Bland.
Bland continued, "We also believe that some of this momentum is due to the fact that on
January 1, most states will adopt a new life insurance regulation known as 'Guideline XXX.'
Right now, term life insurance rates are at all-time lows. According to some industry experts
and financial reporters, this Guideline, when enacted by each of the states, may cause term life
insurance companies to raise premium rates or reduce initial guarantee periods for new
policyholders. While the new Guideline will not affect any life insurance already in force prior to
January 1, nobody knows yet what will happen to premium rates or initial rate guarantee
choices, if anything, after January 1 but a consensus view is forming that term life market
changes are under foot. Quotesmith.com appears to be benefiting from heightened consumer
interest in term life insurance at this time."
Jack |
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| To: Topannuity who wrote () | 11/26/1999 3:24:00 PM | | From: Jack Hartmann | | | |
RESEARCH ALERT - Quotesmith.com keeps buy
Reuters Story - November 26, 1999 11:43
CHICAGO, Nov 26 (Reuters) - ABN AMRO said Friday it is maintaining a buy rating and
price target of $21.50 for Quotesmith.com Inc., after a meeting with managers of the
Internet-based insurance services company.
Quotesmith.com allows consumers and business owners to obtain insurance quotes and request
policy applications from more than 300 insurance companies 24 hours a day, 7 days a week.
In a research note, ABN AMRO said it believes Quotesmith.com is well positioned to become
the Internet portal for the large and highly fragmented insurance industry.
Shares of Quotesmith.com were trading unchanged at 8
Wish I knew what the price target was. Jack |
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| To: Topannuity who wrote () | 11/29/1999 12:33:00 PM | | From: Jack Hartmann | | | |
Quotesmith.com Ranked No. 1 by Gomez Advisors in
'Bargain Hunter' Category of Insurance Sites
PR Newswire - November 29, 1999 12:19
DARIEN, Ill., Nov. 29 /PRNewswire/ -- Quotesmith.com, Inc. (Nasdaq: QUOT), the
Internet's preeminent insurance marketplace and the only place on earth which provides instant
insurance quotes from over 300 leading companies, announced that its Web site has been
ranked No. 1 by Gomez Advisors in the Winter 1999 Bargain Hunter scorecard category of
Internet insurance sites released today.
Gomez Advisors is a provider of e-commerce research and analysis for consumers. In the
Winter 1999 scorecard, Quotesmith.com received a No. 1 ranking, up from a No. 5 ranking in
the Fall 1999 review, among those insurance sites compared within the "Bargain Hunter"
category. Recognizing the critical importance of quote comparisons, the Gomez Advisors
Bargain Hunter category is designed to grade those insurance sites which help insurance
shoppers find the best price available. To arrive at category rankings, Gomez rolls each
criterion up into one of four categories, weighing individual criteria according to their importance
to the category. These categories include ease of use, customer confidence, on-site resources
and relationship services.
"Quotesmith.com is thrilled to be recognized as the No. 1 insurance Bargain Hunter category
leader by Gomez Advisors," remarked Quotesmith.com Chairman and CEO, Robert Bland.
"And we're grateful that Gomez Advisors has recognized that Quotesmith.com is the best place
to find the best insurance bargains. When it comes to breadth of selection, Quotesmith.com
dominates the instant insurance quote space by providing insurance shoppers with instant
quotes from over 300 different companies. We also include detailed coverage information,
published underwriting guidelines, independent rating information and the freedom to buy from
the company of your choice. At Quotesmith.com, we're leading the online insurance revolution
by empowering consumers with an instantaneous, extraordinarily wide view of the market and
by giving them total control over their insurance purchase decisions. We've pioneered and
brought to market a radically better, faster and easier way for insurance shoppers to save
money."
The No. 1 Gomez Advisors category ranking is one of a series of recent plaudits for
Quotesmith.com . In referring to the enormous number of participating insurance companies at
Quotesmith.com and the time-saving convenience of having all of this information in one place,
the November 22, 1999 edition of BusinessWeek called Quotesmith.com a "top site" while the
November 15, 1999 edition of U.S. News and World Report stated that Quotesmith.com
"...excels at comparing prices and terms from many firms."
Hmmm. Maybe explains the surge today. Jack |
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