InsWeb enjoys record Q1 revenue

InsWeb Corp., which provides insurance rate comparisons online, reported net income of $670,000 on a record $13 million in revenue for its first quarter ended March 31.

InsWeb boosted its revenue by 61 percent and net income by 68 percent from first-quarter 2007, the Sacramento-based company reported Thursday.

InsWeb's $670,000 in net income, or 12 cents per diluted share, compared to $400,000, or 9 cents per share, a year ago.

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InsWeb benefited in the first quarter from "new traffic arrangements, continued progress in agent adoption of our AgentInsider program and our expanded relationship with NetQuote," said Hussein Enan, chairman and chief executive officer, said in a news release. "Overall, traffic increased by more than 130 percent sequentially and 160 percent over the first quarter of 2007, while per consumer acquisition costs decreased by 12 percent sequentially and 21 percent compared to a year ago."

The results demonstrate, he said, that the company can "achieve very significant and profitable growth once we reach a critical mass of providers using our platform."

InsWeb made its first annual profit in fiscal 2007.

The company reaffirmed that it expects revenue and net income to increase about 25 percent for fiscal 2008, excluding one-time gains or losses, Enan said.

Shares of InsWeb (Nasdaq: INSW) increased 21 cents to $11.61 in trading Thursday. The company announced its earnings after the markets closed Thursday.