Intersections Inc. announced financial results for the quarter ending March 31, 2004. For the first quarter, revenue increased to $38.2 million, reflecting revenue growth of 8.3 percent over the comparable period of 2003. Earnings per share (“EPS”) for the first quarter was $0.16.
“We are pleased with our results in the first quarter. Our earnings are on track, driven by our growth strategy which continues to build upon the increased scale and the higher margins per revenue dollar in our indirect marketing arrangements,” said Michael R. Stanfield, Intersections Inc. Chairman and Chief Executive Officer.
— Subscription revenue, which excludes one-time transactional sales, increased 27.2 percent to $37.3 million for the quarter ending March 31, 2004, from $29.3 million for the comparable period in 2003. Total subscribers increased to over 2.4 million as of March 31, 2004, from 1.8 million as of March 31, 2003.
— Revenue generated from indirect marketing arrangements represented 37.5 percent of total subscription revenue compared to 23.7 percent for the comparable period of 2003. Subscribers from indirect marketing arrangements represented 55.2 percent of total subscribers as of March 31, 2004 compared to 43.0 percent of total subscribers as of March 31, 2003.
— Operating income was $3.9 million for the quarter ending March 31, 2004 compared to $3.6 million for 2003, an increase of 8.4 percent from 2003. The increase was primarily driven by our increase in revenue but impacted by increased costs to support our expected subscriber growth and expand our infrastructure to add second locations for our customer service and information processing centers.
— During the quarter ending March 31, 2004, cash provided by operations was $4.4 million.
About Intersections Inc.
Intersections Inc. provides identity theft protection and credit management services on a subscription basis to more than two million subscribers in the United States and Canada. Our services are principally marketed to customers of our clients under our clients’ private label brands and are tailored to meet our clients’ specifications. Our clients include large credit and charge card issuing financial institutions and other financial service providers.
For complete details on Intersection’s 1Q/04 results visit CardData ([www.carddata.com]).