Trupanion (TRUP) 10-Q 7 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	3 Months Ended
	Mar. 31, 2015
Entity Information [Line Items]
Entity Registrant Name	TRUPANION INC.
Entity Central Index Key	1371285
Current Fiscal Year End Date	-19
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding	28,089,121

Condensed_Consolidated_Stateme

Condensed Consolidated Statement of Operations (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Revenue	$33,310	$25,640
Claims expenses	23,351	17,034
Other cost of revenue	4,377	3,850
Gross profit	5,582	4,756
Sales and marketing	3,651	2,646
Technology Services Costs	2,798	2,200
General and administrative	3,697	2,786
Total operating expenses	10,146	7,632
Operating loss	-4,564	-2,876
Interest expense	245	736
Other expense, net	19	1,286
Loss before income taxes	-4,828	-4,898
Income tax expense	108	15
Net loss	($4,936)	($4,913)
Net loss per share: Basic and diluted (per share)	($0.18)	($3.22)
Weighted average shares used to compute net loss per share: Basic and diluted (in shares)	27,337,302	1,524,028

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Comprehensive Income Statement (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net loss	($4,936)	($4,913)
Foreign currency translation adjustments	-129	51
Change in unrealized losses on available-for-sale securities	-8	35
Other comprehensive (loss) income, net of taxes	-137	86
Total comprehensive loss	($5,073)	($4,827)

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheet (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Cash and cash equivalents	$32,494	$53,098
Short-term Investments	21,330	22,371
Accounts and other receivables	7,786	7,887
Prepaid expenses and other assets	1,448	1,299
Total current assets	63,058	84,655
Investments in fixed maturities, at fair value	934	942
Property and equipment, net	8,618	7,862
Other long term assets	4,831	4,847
Other Assets, Noncurrent	16	0
Total assets	77,457	98,306
Accounts payable	1,438	1,962
Accrued liabilities	3,560	4,607
Claims reserve	5,185	5,107
Deferred Revenue, Current	9,677	9,345
Other payables	1,083	1,523
Total current liabilities	20,943	22,544
Long-term debt	0	14,900
Deferred tax liabilities	1,495	1,495
Other liabilities	102	92
Total liabilities	22,540	39,031
Common stock: $0.00001 par value per share	0	0
Preferred Stock, Value, Outstanding	0	0
Additional paid-in capital	119,760	119,045
Accumulated other comprehensive loss	-126	11
Accumulated deficit	-62,116	-57,180
Treasury stock, at cost	2,601	2,601
Stockholders' Equity Attributable to Parent	54,917	59,275
Total liabilities, redeemable convertible preferred stock, and stockholders' deficit	$77,457	$98,306

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals (USD $)	Mar. 31, 2015	Dec. 31, 2014
Common Stock [Member]
Common Stock, Par or Stated Value Per Share	$0	$0
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	28,710,100	28,451,920
Common Stock, Shares, Outstanding	28,089,121	27,830,941
Preferred Stock [Member]
Preferred Stock, Par or Stated Value Per Share	$0	$0
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Treasury Stock [Member]
Treasury Stock, Shares	620,979	620,979

Condensed_Consolidated_Stateme2

Condensed Consolidated Statement of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statement of Cash Flows [Abstract]
Net loss	($4,936)	($4,913)
Depreciation and amortization	566	309
Amortization of Financing Costs and Discounts	0	227
Warrant expense	0	1,219
Stock-based compensation expense	703	567
Other Operating Activities, Cash Flow Statement	116	-45
Accounts receivable	75	-142
Prepaid expenses and other current assets	-152	-178
Accounts payable	-387	520
Accrued liabilities	-736	-1,554
Claims reserve	76	-657
Deferred revenue	329	208
Other payables	-330	396
Net cash used in operating activities	-4,908	-3,953
Purchases of investment securities	-3,206	-2,677
Maturities of investment securities	4,245	3,809
Purchases of property and equipment	-1,590	-1,016
Net cash (used in) provided by investing activities	-551	116
Payments of Financing Costs	0	-619
Proceeds from exercise of stock options	367	20
Payment on line of credit	-14,900	0
Payments Related to Tax Withholding for Share-based Compensation	-384	0
Net cash used in financing activities	-14,917	-599
Effect of foreign exchange rates on cash, net	-228	90
Net change in cash and cash equivalents	-20,604	-4,346
Cash and cash equivalents at beginning of period	53,098	14,939
Cash and cash equivalents at end of period	32,494	10,593
Income taxes paid	-98	-7
Interest paid	-249	-227
Increase in payables for property and equipment	-367	-422
Increase in payables for deferred financing costs	$0	($812)

Nature_of_Operations_and_Summa

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies
	Description of Business
	Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) is a direct-to-consumer monthly subscription service provider of a medical plan for cats and dogs throughout the United States, Canada and Puerto Rico.
	Basis of Presentation
	The consolidated balance sheet data as of December 31, 2014 was derived from audited consolidated financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 24, 2015. The accompanying unaudited consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Company’s financial position and results of its operations, as of and for the periods presented. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or for any other period.
	Reclassifications
	Certain prior year amounts have been reclassified within the Company’s consolidated financial statements from their original presentation to conform to the current period presentation. In addition, amounts in note 8 related to segments have been recast to reflect a change in the composition of the Company’s segments as described in note 8.
	Use of Estimates
	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, claims reserve and useful lives of software developed for internal use. Actual results could differ from the estimates used in preparing the consolidated financial statements.
	Income Taxes
	The Company is subject to income taxes in the United States and in Canada. The provision for income taxes reflects the Company's estimated effective tax rate for the year. The difference between this rate and the U.S. federal income tax rate of 35% was primarily due to a full valuation allowance on its U.S. deferred tax assets.
	Accumulated Other Comprehensive Loss
	There were no reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2015 and 2014.
	Insurance Operations
	Effective January 1, 2015, the Company formed a segregated account in Bermuda as part of Wyndham Insurance Company (SAC) Limited (WICL), and entered into a revised fronting and reinsurance arrangement with Omega General Insurance Company (Omega) to include its newly formed segregated account. The Company maintains all risk with the business written in Canada and consolidates the entity in its financial statements. Contractual requirements restrict dividends from this entity until after 2016, at which time dividends will be allowed subject to the Segregated Accounts Company Act of 2000, which allows for dividends only to the extent that the entity remains solvent and the value of its assets remain greater than the aggregate of its liabilities and its issued share capital and share premium accounts.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Insurance contracts are excluded from the scope of this new guidance. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited, and must be applied retrospectively or modified retrospectively. We do not believe this ASU will have a material impact on our consolidated financial statements.

Net_Loss_per_Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Net Loss per Share
	Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Excluded from the weighted-average number of shares outstanding are shares that have been issued and are subject to future vesting and unvested restricted stock. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method. Potentially dilutive common stock equivalents are comprised of convertible preferred stock, warrants for the purchase of convertible preferred stock and common stock, exchangeable shares, unvested restricted stock, restricted stock units, and stock options. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.
	The following potential dilutive equity securities are not included in the diluted net loss per common share calculation because they would have had an antidilutive effect:
		As of March 31,
		2015	2014
	Stock options	4,677,592	4,833,400
	Restricted stock awards and units	592,625	714,365
	Warrants	869,999	884,111
	Series A convertible preferred stock	—	7,466,283
	Series B convertible preferred stock	—	3,546,384
	Series C convertible preferred stock	—	3,845,322
	Exchangeable shares	—	2,247,130
	Convertible preferred stock is presented on an as converted basis to reflect the applicable conversion ratio.

Investment_Securities

Investment Securities	3 Months Ended
	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	Investment Securities
	The amortized cost, gross unrealized holding losses, and fair value of available-for-sale and short-term investments by major security type and class of security were as follows as of March 31, 2015 and December 31, 2014 (in thousands):
		Amortized		Gross			Fair
		Cost		Unrealized			Value
				Holding
				Losses
	As of March 31, 2015
	Available-for-sale:
	Municipal bond	$	1,000	$	(66	)	$	934
		$	1,000	$	(66	)	$	934
	Short-term investments:
	U.S. Treasury securities	$	5,782	$	(1	)	$	5,781
	Certificates of deposit	800		—			800
	U.S. government funds	14,748		—			14,748
		$	21,330	$	(1	)	$	21,329
		Amortized		Gross			Fair
		Cost		Unrealized			Value
				Holding
				Losses
	As of December 31, 2014
	Available-for-sale:
	Municipal bond	$	1,000	$	(58	)	$	942
		$	1,000	$	(58	)	$	942
	Short-term investments:
	U.S. Treasury securities	$	5,677	$	—		$	5,677
	Certificates of deposit	800		—			$	800
	U.S. government funds	15,894		—			$	15,894
		$	22,371	$	—		$	22,371
	Maturities of debt securities classified as available-for-sale were as follows (in thousands):
		31-Mar-15
		Amortized		Fair
		Cost		Value
	Available-for-sale:
	Due under one year	$	—	$	—
	Due after one year through five years	—		—
	Due after five years through ten years	1,000		934
	Due after ten years	—		—
		$	1,000	$	934
	The Company had one investment with an unrealized loss of $0.1 million and a fair value of $0.9 million at March 31, 2015 and December 31, 2014. The debt security has been in the unrealized loss position for more than 12 months. The Company has assessed the bond for credit impairment and has determined that there is no intent to sell this bond and it is likely that it will hold the investment for a period of time sufficient to allow for a recovery. Furthermore, future payments on this bond are insured by a financial guarantee insurer. Therefore, the Company believes that the unrealized loss on this bond constitutes a temporary impairment.

Fair_Value

Fair Value	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	Fair Value
	The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible.
	When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
	•	Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
	•	Level 2 inputs: Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
	•	Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
	The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (in thousands):
		As of March 31, 2015
		Fair Value		Level 1		Level 2		Level 3
	Assets
	Municipal bond	$	934	$	—	$	934	$	—
	Money market funds	20,574		20,574		—		—
	Total	$	21,508	$	20,574	$	934	$	—
		As of December 31, 2014
		Fair Value		Level 1		Level 2		Level 3
	Assets
	Municipal bond	$	942	$	—	$	942	$	—
	Money market funds	44,575		44,575		—		—
	Total	$	45,517	$	44,575	$	942	$	—
	The Company estimates fair value for its long-term debt based upon rates currently available to the Company for debt with similar terms and remaining maturities. This is a Level 3 measurement. Based upon the terms of the debt, the carrying amount of long term debt approximated fair value at December 31, 2014.
	The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers between levels for the three months ended March 31, 2015 and 2014.
	The following methods and assumptions were used to estimate the fair value of each class of financial instruments:
	•	Investment securities: Debt securities classified as available-for-sale are measured using quoted market prices when quoted market prices are available. If quoted market prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices of similar instruments and other significant inputs derived from observable market data obtained from third-party data providers. Held-to-maturity securities are carried at amortized cost and the fair value is disclosed in Note 3. Fair value is determined in the same manner as available-for-sale securities and is considered a Level 2 measurement.
	•	Warrant liabilities: These liabilities are valued using the Black-Scholes-Merton option-pricing model using certain unobservable inputs that are estimated by the Company. These inputs include a measure of volatility using an average of peer companies’ publicly traded stock volatility, expected dividend payments based on management’s assertion that no dividends will be paid in the near term, the remaining contractual term and a discount rate using an average equivalent bond yield calculation.
	An increase or decrease in any of these unobservable inputs would result in a change in the fair value measurement, which may be significant. The liabilities were revalued each period-end until exercised, expired or modified to exclude recurring fair value measurement.
	A rollforward of activity in liabilities valued using Level 3 inputs is as follows (in thousands):
		Warrant Liabilities
		2015		2014
	Balance at January 1,	$	—	$	4,900
	Change in fair value upon remeasurement	—		1,219
	Balance at March 31,	$	—	$	6,119
	Changes in fair value upon remeasurement are recorded in other expense, net on the consolidated statement of operations.

Debt

Debt	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	Debt
	The Company has a revolving line of credit with a bank, which is secured by any and all interest the Company has in assets that are not otherwise restricted. The revolving line of credit bears a variable interest rate equal to the greater of 5.0% or 1.5% plus the prime rate. Interest expense is due monthly on the outstanding principal amount with all amounts outstanding under the revolving line of credit due upon maturity in July 2016. The credit agreement requires the Company to comply with various financial and non-financial covenants. This facility also has a compensating balance requirement of $0.5 million.
	Borrowings on the revolving line of credit are limited to the lesser of $20.0 million in 2015 and 2014, and the total amount of cash and securities held by American Pet Insurance Company (APIC), less up to $0.5 million for obligations the Company may have outstanding for other ancillary services. The Company has no outstanding borrowings on this line of credit as of March 31, 2015.

Commitment_and_Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Commitments and Contingencies
	The Company has entered into strategic marketing and consulting agreements with various parties. Agreements entered into during the three months ended March 31, 2015 will result in an increase in commitments of $0.6 million in 2015, $1.1 million in 2016 and $0.3 million in 2017.
	The Company completed a voluntary self-disclosure with the Canada Revenue Agency related to goods and services tax (GST) and harmonized sales tax (HST) owed for 2007 through 2013. During the three months ended March 31, 2015, the Company received the final assessment of GST and HST owed amounting to $0.8 million and paid $0.4 million of this fee to the Canada Revenue Agency. The remainder of the amount owed is expected to be paid in the three months ended June 30, 2015. Interest will be due on the amounts owed until they are paid.
	The Company’s subsidiary, APIC, a New York insurance company, received an inquiry from the California Department of Insurance (CDOI) in 2011 alleging APIC’s trial insurance policies issued in California are in violation of California law. The Company disputed this assertion. On February 12, 2015, APIC and CDOI entered into a Stipulation and Waiver whereby APIC voluntarily agreed to remove its trial certificate program in favor of a new program that was approved by the CDOI. APIC also agreed to pay a fine and reimburse CDOI expenses in an aggregate amount of $0.4 million which was accrued as of December 31, 2014. Pursuant to the stipulation, APIC did not admit any wrongdoing and continues to believe that its program was permissible under California law; however, the Company determined that it was in its best interest to resolve the dispute amicably.
	The Company received an inquiry from the Washington State Office of the Insurance Commissioner (OIC) in December 2012 concerning whether subsidiaries of the Company were properly licensed, and whether certain of its employees were properly licensed, under Washington law. A regulatory examination took place during the third and fourth quarters of 2014. As of March 31, 2015 and December 31, 2014, the Company had accrued liabilities of $0.3 million and $0.2 million, respectively, for this matter. Adverse outcomes beyond recorded amounts are reasonably possible. At this stage in the matter, however, the Company is unable to estimate a possible loss or range of possible loss beyond amounts accrued.
	The outcomes of the Company’s legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability beyond previously accrued amounts has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

Stockbased_Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2015
Stock-based Compensation [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Stock-Based Compensation
	The following table presents information regarding stock options granted, exercised and forfeited for the periods presented:
		Number Of Options		Weighted-Average Exercise Price			Aggregate Intrinsic Value
							(in thousands)
	31-Dec-14	5,112,556		$	3.19		$	21,116
	Granted	57,374		7.36
	Exercised	(330,875	)	1.58			2,068
	Forfeited	(161,463	)	8.79
	31-Mar-15	4,677,592		3.16			23,564
	Vested and exercisable at March 31, 2015	3,415,825		$	1.93		$	20,833
	As of March 31, 2015, the stock options outstanding had a remaining contractual life of 6.40 years.
	Stock-based compensation expense includes stock options and restricted stock granted to employees and non-employees and has been reported in the Company’s statements of operations in claims expenses, other cost of revenue, sales and marketing, technology and development, and general and administrative expenses depending on the function performed by the employee or non-employee. The Company measures compensation expense on a straight-line basis except for restricted stock with a performance condition which is measured on a graded vesting schedule. The remaining 584,385 shares of unvested restricted stock measured on a graded vesting schedule are expected to vest over the remaining service term of approximately 4.50 years.
	As of March 31, 2015, the Company had unrecognized stock-based compensation of $6.2 million related to stock options and restricted stock held by employees and non-employees, which is expected to vest over a weighted-average period of approximately 2.35 years. As of March 31, 2015, the Company had 1,261,767 unvested stock options and 592,625 restricted stock awards that are expected to vest. No net tax benefits related to the stock-based compensation costs have been recognized since the Company’s inception. The expense recognized in each category is provided in the table below:
		Three Months Ended March 31,
		2015			2014
		(in thousands)
	Claims expenses	$	53		$	57
	Other cost of revenue	16			24
	Sales and marketing	130			149
	Technology and development	121			98
	General and administrative	383			239
	Total stock-based compensation	$	703		$	567

Segments

Segments	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	Segments
	The Company operates in two segments: subscription business and other business. The subscription business segment includes monthly subscriptions related to the Company’s medical plan which are marketed directly to consumers, while the other business segment includes all other business which is not directly marketed to consumers. Prior to January 1, 2015, certain enrollments not marketed directly to consumers were included in the subscription business segment as they were not segregated in reporting used by the chief operating decision maker. During the three months ended March 31, 2015, the Company began reporting these pets in its other business segment due to the characteristics of this business being similar to other arrangements within the other business segment. In addition, the chief operating decision maker began using information related to the subscription business segment excluding these pets in order to evaluate the Company's business and operations and make decisions. As such, these pets have been considered a part of the other business segment after January 1, 2015. Prior period segment information presented below has been recast to reflect this change.
	The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Corporate operating expenses, interest and other expenses, and income taxes are not allocated to the segments, nor included in the measure of segment profit or loss. The Company does not analyze discrete segment balance sheet information related to long-term assets.
	Revenue and gross profit of the Company’s segments were as follows (in thousands):
		Three Months Ended
		March 31,
		2015			2014
	Revenue:
	Subscription business	$	30,056		$	22,861
	Other business	3,254			2,779
		33,310			25,640
	Claims expenses:
	Subscription business	21,502			15,896
	Other business	1,849			1,138
		23,351			17,034
	Other cost of revenue:
	Subscription business	3,264			2,492
	Other business	1,113			1,358
		4,377			3,850
	Gross profit:
	Subscription business	5,290			4,473
	Other business	292			283
		5,582			4,756
	Sales and marketing	3,651			2,646
	Technology and development	2,798			2,200
	General and administrative	3,697			2,786
	Operating loss	$	(4,564	)	$	(2,876	)
	The following table presents the Company’s revenue by geographic region of the member (in thousands):
		Three Months Ended
		March 31,
		2015			2014
	United States	$	25,831		$	18,882
	Canada	7,479			6,758
	Total revenue	$	33,310		$	25,640
	Substantially all of the Company’s long-lived assets were located in the United States as of March 31, 2015.

Nature_of_Operations_and_Summa1

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business
	Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) is a direct-to-consumer monthly subscription service provider of a medical plan for cats and dogs throughout the United States, Canada and Puerto Rico.
	Basis of Presentation
	The consolidated balance sheet data as of December 31, 2014 was derived from audited consolidated financial statements. The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for unaudited consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 24, 2015. The accompanying unaudited consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Company’s financial position and results of its operations, as of and for the periods presented. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or for any other period.
Reclassification, Policy [Policy Text Block]	Reclassifications
	Certain prior year amounts have been reclassified within the Company’s consolidated financial statements from their original presentation to conform to the current period presentation. In addition, amounts in note 8 related to segments have been recast to reflect a change in the composition of the Company’s segments as described in note 8.
Use of Estimates [Policy Text Block]	Use of Estimates
	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, claims reserve and useful lives of software developed for internal use. Actual results could differ from the estimates used in preparing the consolidated financial statements.
Income Tax, Policy [Policy Text Block]	Income Taxes
	The Company is subject to income taxes in the United States and in Canada. The provision for income taxes reflects the Company's estimated effective tax rate for the year. The difference between this rate and the U.S. federal income tax rate of 35% was primarily due to a full valuation allowance on its U.S. deferred tax assets.
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Accumulated Other Comprehensive Loss
	There were no reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2015 and 2014.
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block]	Insurance Operations
	Effective January 1, 2015, the Company formed a segregated account in Bermuda as part of Wyndham Insurance Company (SAC) Limited (WICL), and entered into a revised fronting and reinsurance arrangement with Omega General Insurance Company (Omega) to include its newly formed segregated account. The Company maintains all risk with the business written in Canada and consolidates the entity in its financial statements. Contractual requirements restrict dividends from this entity until after 2016, at which time dividends will be allowed subject to the Segregated Accounts Company Act of 2000, which allows for dividends only to the extent that the entity remains solvent and the value of its assets remain greater than the aggregate of its liabilities and its issued share capital and share premium accounts.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Insurance contracts are excluded from the scope of this new guidance. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited, and must be applied retrospectively or modified retrospectively. We do not believe this ASU will have a material impact on our consolidated financial statements.

Net_Loss_per_Share_Tables

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following potential dilutive equity securities are not included in the diluted net loss per common share calculation because they would have had an antidilutive effect:
		As of March 31,
		2015	2014
	Stock options	4,677,592	4,833,400
	Restricted stock awards and units	592,625	714,365
	Warrants	869,999	884,111
	Series A convertible preferred stock	—	7,466,283
	Series B convertible preferred stock	—	3,546,384
	Series C convertible preferred stock	—	3,845,322
	Exchangeable shares	—	2,247,130

Investment_Securities_Availabl

Investment Securities Available-for-Sale (Tables)	3 Months Ended
	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Investment [Table Text Block]	The amortized cost, gross unrealized holding losses, and fair value of available-for-sale and short-term investments by major security type and class of security were as follows as of March 31, 2015 and December 31, 2014 (in thousands):
		Amortized		Gross			Fair
		Cost		Unrealized			Value
				Holding
				Losses
	As of March 31, 2015
	Available-for-sale:
	Municipal bond	$	1,000	$	(66	)	$	934
		$	1,000	$	(66	)	$	934
	Short-term investments:
	U.S. Treasury securities	$	5,782	$	(1	)	$	5,781
	Certificates of deposit	800		—			800
	U.S. government funds	14,748		—			14,748
		$	21,330	$	(1	)	$	21,329
		Amortized		Gross			Fair
		Cost		Unrealized			Value
				Holding
				Losses
	As of December 31, 2014
	Available-for-sale:
	Municipal bond	$	1,000	$	(58	)	$	942
		$	1,000	$	(58	)	$	942
	Short-term investments:
	U.S. Treasury securities	$	5,677	$	—		$	5,677
	Certificates of deposit	800		—			$	800
	U.S. government funds	15,894		—			$	15,894
		$	22,371	$	—		$	22,371
Available-for-sale Securities [Table Text Block]	Maturities of debt securities classified as available-for-sale were as follows (in thousands):
		31-Mar-15
		Amortized		Fair
		Cost		Value
	Available-for-sale:
	Due under one year	$	—	$	—
	Due after one year through five years	—		—
	Due after five years through ten years	1,000		934
	Due after ten years	—		—
		$	1,000	$	934

Fair_Value_Tables

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Fair value, asset & liabilities measured on recurring basis [Table Text Block]	The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis (in thousands):
		As of March 31, 2015
		Fair Value		Level 1		Level 2		Level 3
	Assets
	Municipal bond	$	934	$	—	$	934	$	—
	Money market funds	20,574		20,574		—		—
	Total	$	21,508	$	20,574	$	934	$	—
		As of December 31, 2014
		Fair Value		Level 1		Level 2		Level 3
	Assets
	Municipal bond	$	942	$	—	$	942	$	—
	Money market funds	44,575		44,575		—		—
	Total	$	45,517	$	44,575	$	942	$	—
Fair value, assets measured on recurring basis, unobservable input reconciliation [Table Text Block]	A rollforward of activity in liabilities valued using Level 3 inputs is as follows (in thousands):
		Warrant Liabilities
		2015		2014
	Balance at January 1,	$	—	$	4,900
	Change in fair value upon remeasurement	—		1,219
	Balance at March 31,	$	—	$	6,119

Stockbased_Compensation_Tables

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	The following table presents information regarding stock options granted, exercised and forfeited for the periods presented:
		Number Of Options		Weighted-Average Exercise Price			Aggregate Intrinsic Value
							(in thousands)
	31-Dec-14	5,112,556		$	3.19		$	21,116
	Granted	57,374		7.36
	Exercised	(330,875	)	1.58			2,068
	Forfeited	(161,463	)	8.79
	31-Mar-15	4,677,592		3.16			23,564
	Vested and exercisable at March 31, 2015	3,415,825		$	1.93		$	20,833
	As of March 31, 2015, the stock options outstanding had a remaining contractual life of 6.40 years.
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	The expense recognized in each category is provided in the table below:
		Three Months Ended March 31,
		2015			2014
		(in thousands)
	Claims expenses	$	53		$	57
	Other cost of revenue	16			24
	Sales and marketing	130			149
	Technology and development	121			98
	General and administrative	383			239
	Total stock-based compensation	$	703		$	567

Segments_Tables

Segments (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Revenue and Gross Profit from Segments [Table Text Block]	Revenue and gross profit of the Company’s segments were as follows (in thousands):
		Three Months Ended
		March 31,
		2015			2014
	Revenue:
	Subscription business	$	30,056		$	22,861
	Other business	3,254			2,779
		33,310			25,640
	Claims expenses:
	Subscription business	21,502			15,896
	Other business	1,849			1,138
		23,351			17,034
	Other cost of revenue:
	Subscription business	3,264			2,492
	Other business	1,113			1,358
		4,377			3,850
	Gross profit:
	Subscription business	5,290			4,473
	Other business	292			283
		5,582			4,756
	Sales and marketing	3,651			2,646
	Technology and development	2,798			2,200
	General and administrative	3,697			2,786
	Operating loss	$	(4,564	)	$	(2,876	)
Revenue from External Customers by Geographic Areas [Table Text Block]	The following table presents the Company’s revenue by geographic region of the member (in thousands):
		Three Months Ended
		March 31,
		2015			2014
	United States	$	25,831		$	18,882
	Canada	7,479			6,758
	Total revenue	$	33,310		$	25,640

Nature_of_Operations_and_Summa2

Nature of Operations and Summary of Significant Accounting Policies (Details) OCI (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$0	$0
Accumulated other comprehensive loss: unrealized loss on available for sale securities	-66,000		-58,000
Unrealized foreign currency gain (loss)	($129,000)	$51,000

Net_Loss_per_Share_Details_Sch

Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,677,592	5,112,556	4,833,400
Unvested restricted stock, expected to vest	592,625		714,365
Common shares attributable to dilutive effect of warrants	869,999		884,111
Common shares attributable to dilutive effect of exchangeable shares	0
Series A convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common shares attributable to dilutive effect of preferred stock	0		7,466,283
Series B convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common shares attributable to dilutive effect of preferred stock	0		3,546,384
Series C convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common shares attributable to dilutive effect of preferred stock	0		3,845,322
Exchangeable shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common shares attributable to dilutive effect of exchangeable shares			2,247,130

Investment_Securities_Details_

Investment Securities (Details) Investment Schedule (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Investment [Line Items]
Held-to-maturity securities, amortized cost	$21,330	$22,371
Held-to-maturity securities, gross unrealized holding losses	-1	0
Held-to-maturity securities, fair value	21,329	22,371
Available-for-sale securities, amortized cost	1,000	1,000
Available-for-sale securities, gross unrealized holding losses	66	58
Available-for-sale securities, fair value	934	942
Municipal Bonds [Member]
Investment [Line Items]
Available-for-sale securities, amortized cost	1,000	1,000
Available-for-sale securities, gross unrealized holding losses	66	58
Available-for-sale securities, fair value	934	942
U.S. Treasury securities
Investment [Line Items]
Held-to-maturity securities, amortized cost	5,782	5,677
Held-to-maturity securities, gross unrealized holding losses	-1	0
Held-to-maturity securities, fair value	5,781	5,677
Certificates of deposit
Investment [Line Items]
Held-to-maturity securities, amortized cost	800	800
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	800	800
US government debt securities
Investment [Line Items]
Held-to-maturity securities, amortized cost	14,748	15,894
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	$14,748	$15,894

Investment_Securities_Details_1

Investment Securities (Details) Narrative (USD $)	Mar. 31, 2015
In Thousands, unless otherwise specified
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities, continuous unrealized loss position, fair value	$66
Available-for-sale securities, debt maturities, fair value	$934

Investment_Securities_Details_2

Investment Securities (Details) Held-to-Maturity (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Investments, Debt and Equity Securities [Abstract]
Held-to-maturity securities, amortized cost	$21,330	$22,371
Held-to-maturity securities, fair value	$21,329	$22,371

Investment_Securities_Details_3

Investment Securities (Details) Available-for-Sale (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities, debt maturities, next twelve months, amortized cost basis	$0
Available-for-sale securities, debt maturities, next twelve months, fair value	0
Available-for-sale securities, debt maturities, year two through five, amortized cost basis	0
Available-for-sale securities, debt maturities, year two through five, fair value	0
Available-for-sale securities, debt maturities, year six through ten, amortized cost basis	1,000
Available-for-sale securities, debt maturities, year six through ten, fair value	934
Available-for-sale securities, debt maturities, after ten years, amortized cost basis	0
Available-for-sale securities, debt maturities, after ten years, fair value	0
Available-for-sale securities, amortized cost	1,000	1,000
Available-for-sale securities, debt maturities, fair value	$934

Fair_Value_Details_Unobservabl

Fair Value (Details) Unobservable (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	$934	$942
Assets, Fair Value Disclosure	21,508	45,517
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	20,574	44,575
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	934	942
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	0	0
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	20,574	44,575
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	20,574	44,575
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Municipal bond
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent		942
Municipal bond | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	0	0
Municipal bond | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	934	942
Municipal bond | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	$0	$0

Fair_Value_Details_Rollforward

Fair Value (Details) Rollforward of Level 3 (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Fair Value Disclosures [Abstract]
Warrant liabilities (period start)	$0	$4,900
Fair value adjustment of warrants	0	1,219
Warrant liabilities (period end)	$0	$6,119

Debt_Details_Narrative

Debt (Details) Narrative (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Line of credit facility, interest rate description	greater of 5.0% or 1.5% plus the prime rate
Compensating balance	$500,000
Line of Credit Facility, Maximum Amount Outstanding During Period	20,000,000	20,000,000
Line of Credit, Current	$0

Commitment_and_Contingencies_D

Commitment and Contingencies (Details) Narrative (USD $)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Long-term Purchase Commitment, Amount	$300,000	$1,100,000	$600,000
GST/HST tax accrual					799,000
GST/HST Paid					413,000
Litigation Settlement, Amount				400,000
Loss contingency accrual				$200,000	$300,000

Stockbased_Compensation_Detail

Stock-based Compensation (Details) Options Granted, Exercised and Forfeited (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unvested restricted stock, expected to vest	592,625		714,365
Stock-based compensation, options, forfeited, weighted-average exercise price	$8.79
Stock-based compensation, options, outstanding, number of shares	4,677,592	5,112,556	4,833,400
Stock-based compensation, options, outstanding, weighted-average exercise price	$3.16	$3.19
Stock-based compensation, options, outstanding, aggregate intrinsic value	$23,564	$21,116
Stock-based compensation, options, granted, number of options	57,374
Stock-based compensation, options, granted, weighted-average exercise price	$7.36
Stock-based compensation, options, exercised, weighted-average exercise price	$1.58
Stock-based compensation, options, exercised	-330,875
Stock-based compensation, options, exercised, aggregate intrinsic value	2,068
Stock-based compensation, options, forfeited	-161,463
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	3,415,825
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$1.93
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$20,833

Stockbased_Compensation_Detail1

Stock-based Compensation (Details) Expense Category (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$703	$567
Claims expense
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	53	57
Other Expense [Member]
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	16	24
Sales and marketing
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	130	149
Technology services costs [Member]
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	121	98
General and administrative
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$383	$239

Stockbased_Compensation_Detail2

Stock-based Compensation (Details) Narrative (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unvested Portion of Restricted Stock Grant with IPO Performance Condition	584,385
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized	$6,195
Unvested RSUs with IPO Performance Condition, Remaining Vesting Period	4 years 6 months
Remaining contractual life, share-based payments, weighted average	6 years 4 months 24 days
Share-based compensation arrangement , non-employee, weighted average remaining vesting period	2 years 4 months 6 days
Share-based compensation arrangement by share-based payment award, options, nonvested, number of shares	1,261,767

Segments_Details_Business_Segm

Segments (Details) Business Segment (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Revenue	$33,310	$25,640
Claims expenses	23,351	17,034
Other cost of revenue	4,377	3,850
Gross profit	5,582	4,756
Sales and marketing	3,651	2,646
Technology Services Costs	2,798	2,200
General and administrative	3,697	2,786
Operating loss	-4,564	-2,876
Subscription business
Segment Reporting Information [Line Items]
Revenue	30,056	22,861
Claims expenses	21,502	15,896
Other cost of revenue	3,264	2,492
Gross profit	5,290	4,473
Other business
Segment Reporting Information [Line Items]
Revenue	3,254	2,779
Claims expenses	1,849	1,138
Other cost of revenue	1,113	1,358
Gross profit	$292	$283

Segments_Details_Revenue_by_Ge

Segments (Details) Revenue by Geography (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Revenues	$33,310	$25,640
CANADA
Segment Reporting Information [Line Items]
Revenues	7,479	6,758
UNITED STATES
Segment Reporting Information [Line Items]
Revenues	$25,831	$18,882