Trupanion (TRUP) 10-Q 4 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2016	Oct. 26, 2016
Entity Information [Line Items]
Entity Registrant Name	TRUPANION INC.
Entity Central Index Key	1,371,285
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		29,253,857

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenue	$ 48,359	$ 37,865	$ 136,890	$ 106,762
Claims expenses	34,253	26,604	97,323	75,442
Other cost of revenue	5,606	4,670	15,497	13,361
Gross profit	8,500	6,591	24,070	17,959
Sales and marketing	3,892	4,128	11,296	11,312
Technology Services Costs	2,339	3,005	6,790	8,683
General and administrative	3,811	4,067	11,028	11,760
Total operating expenses	10,042	11,200	29,114	31,755
Operating loss	(1,542)	(4,609)	(5,044)	(13,796)
Interest expense	66	14	137	298
Other expense (income), net	16	4	(39)	8
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(1,624)	(4,627)	(5,142)	(14,102)
Income tax expense	13	16	31	102
Net loss	$ (1,637)	$ (4,643)	$ (5,173)	$ (14,204)
Net loss per share: Basic and diluted (per share)	$ (0.06)	$ (0.17)	$ (0.18)	$ (0.52)
Weighted average shares used to compute net loss per share: Basic and diluted (in shares)	28,732,417	27,755,310	28,362,084	27,564,975

Condensed Consolidated Stateme3

Condensed Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net loss	$ (1,637)	$ (4,643)	$ (5,173)	$ (14,204)
Foreign currency translation adjustments	(96)	(274)	204	(347)
Change in unrealized losses on available-for-sale securities	25	29	33	(12)
Other comprehensive (loss) income, net of taxes	(71)	(245)	237	(359)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (1,708)	$ (4,888)	$ (4,936)	$ (14,563)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Cash and cash equivalents	$ 20,626	$ 17,956
Short-term Investments	28,720	25,288
Accounts and other receivables	10,286	8,196
Prepaid expenses and other assets	1,919	2,193
Total current assets	61,551	53,633
Investments in fixed maturities, at fair value	2,500	2,388
Equity Method Investments	289	300
Property and equipment, net	9,188	9,719
Other long term assets	4,894	4,854
Other Assets, Noncurrent	89	23
Total assets	78,511	70,917
Accounts payable	1,284	1,289
Accrued liabilities	3,489	4,189
Claims reserve	8,362	6,274
Deferred Revenue, Current	13,171	11,042
Deferred Tax Liabilities, Net, Current	169	169
Other payables	987	654
Total current liabilities	27,462	23,617
Long-term debt	3,969	0
Deferred tax liabilities	1,433	1,433
Other liabilities	858	511
Total liabilities	33,722	25,561
Common stock: $0.00001 par value per share	0	0
Preferred Stock, Value, Outstanding	0	0
Additional paid-in capital	127,213	122,844
Accumulated other comprehensive loss	(265)	(502)
Accumulated deficit	(79,558)	(74,385)
Treasury stock, at cost	(2,601)	(2,601)
Stockholders' Equity Attributable to Parent	44,789	45,356
Total liabilities and stockholders' equity	$ 78,511	$ 70,917

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Liabilities, Current	$ 27,462	$ 23,617
Held-to-maturity Securities, Fair Value	28,720	25,288
Available-for-sale Securities, Amortized Cost Basis	$ 2,521	$ 2,442
Common Stock [Member]
Common Stock, Par or Stated Value Per Share	$ 0	$ 0
Common Stock, Shares Authorized	100,000,000	200,000,000
Common Stock, Shares, Issued	29,870,771	29,017,168
Common Stock, Shares, Outstanding	29,249,792	28,396,189
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 Stateme6

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Net loss	$ (5,173)	$ (14,204)
Depreciation and amortization	2,617	1,800
Stock-based compensation expense	2,215	2,349
Other Operating Income (Expense), Net	218	(86)
Accounts and other receivables	(2,023)	(504)
Prepaid expenses and other assets	217	(868)
Accounts payable	(31)	(329)
Accrued liabilities	(700)	53
Increase (Decrease) in Claims Reserve and Loss Adjustment	2,043	1,127
Deferred revenue	2,079	1,310
Other payables	106	(416)
Net cash provided by (used in) operating activities	1,568	(9,768)
Payments to Acquire Held-to-maturity Securities	(15,992)	(16,082)
Proceeds from Sale and Maturity of Held-to-maturity Securities	12,577	13,580
Payments to Acquire Equity Method Investments	0	(300)
Purchases of property and equipment	(1,546)	(3,816)
(Payments for) Proceeds from Investments	(130)	0
Net cash used in investing activities	(5,091)	(6,618)
Payments Related to Tax Withholding for Share-based Compensation	(662)	(643)
Proceeds from exercise of stock options	2,736	914
Proceeds from (Repayments of) Debt	3,988	(14,900)
Repayments of Long-term Capital Lease Obligations	(110)	0
Net cash provided by (used in) financing activities	5,952	(14,629)
Effect of foreign exchange rates on cash, net	241	(395)
Net change in cash and cash equivalents	2,670	(31,410)
Cash and cash equivalents at beginning of period	17,956	53,098
Cash and cash equivalents at end of period	20,626	21,688
Income taxes paid	12	117
Interest paid	92	155
Increase in payables for property and equipment	81	310
Capital Lease Obligations Incurred	$ 615	$ 0

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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) provides medical insurance plans for cats and dogs throughout the United States, Canada and Puerto Rico. Basis of Presentation The consolidated balance sheet data as of December 31, 2015 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, 2015 included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 17, 2016. 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 and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any other period. 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, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements. Accumulated Other Comprehensive Loss There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2016 and 2015. Recent Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending short-term insurance contract disclosures and requiring more detailed disclosures to enable users of financial statements to understand information relating to liabilities for unpaid claims and claims adjustment expenses. Additionally, the amendments will also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate these liabilities. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. Early adoption of this guidance is permitted, and must be applied retrospectively by providing comparative disclosures for each period presented. The Company plans to adopt this guidance as of December 31, 2016. The Company has determined that although this guidance will not impact the operating results, financial condition or cash flows, additional disclosures will be required in the Company's Form 10-K and Form 10-Q upon adoption. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. The Company plans to prospectively adopt this guidance as of January 1, 2017. The Company anticipates that this guidance will not have a material impact on the financial statements resulting from the reclassification of deferred taxes to non-current. The Company will continue to monitor the impact of this guidance. In February 2016, the FASB issued an ASU amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the balance sheet. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2019. The Company is in the process of assessing the impact of this guidance. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Additionally, tax withholding of shares will be allowed up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2017. The Company has determined the guidance for estimating forfeitures does not currently have a material impact to the financial statements; however, the Company will continue to monitor the impact of this guidance. In August 2016, the FASB issued an ASU which addresses eight specific cash flow issues intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for fiscal periods beginning after December 15, 2017 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2018. The Company is in the process of assessing the impact of this guidance.

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2016
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 unvested restricted stock, stock options, and warrants. 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 potentially dilutive equity securities were not included in the diluted net loss per common share calculation because they would have had an antidilutive effect: As of September 30, 2016 2015 Stock options 4,354,494 4,991,047 Restricted stock awards and units 355,329 474,522 Warrants 869,999 869,999

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 and December 31, 2015 (in thousands): Amortized Gross Fair As of September 30, 2016 Available-for-sale: Foreign deposits $ 1,521 $ — $ 1,521 Municipal bond 1,000 (21 ) 979 $ 2,521 $ (21 ) $ 2,500 Short-term investments: U.S. Treasury securities $ 5,786 $ — $ 5,786 Certificates of deposit 708 — 708 U.S. government funds 22,226 — 22,226 $ 28,720 $ — $ 28,720 Amortized Gross Fair As of December 31, 2015 Available-for-sale: Foreign deposits $ 1,442 $ — $ 1,442 Municipal bond 1,000 (54 ) 946 $ 2,442 $ (54 ) $ 2,388 Short-term investments: U.S. Treasury securities $ 5,683 $ — $ 5,683 Certificates of deposit 1,551 — 1,551 U.S. government funds 18,054 — 18,054 $ 25,288 $ — $ 25,288 Maturities of debt securities classified as available-for-sale were as follows (in thousands): September 30, 2016 Amortized Fair Available-for-sale: Due under one year $ — $ — Due after one year through five years 1,521 1,521 Due after five years through ten years 1,000 979 Due after ten years — — $ 2,521 $ 2,500 The Company had one investment with an unrealized loss of less than $0.1 million and a fair value of $1.0 million at September 30, 2016, and an unrealized loss of $0.1 million and a fair value of $0.9 million at December 31, 2015. 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	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,521 $ 1,521 $ — $ — Municipal bond 979 — 979 — Money market funds 7,325 7,325 — — Total $ 9,825 $ 8,846 $ 979 $ — As of December 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,442 $ 1,442 $ — $ — Municipal bond 946 — 946 — Money market funds 7,545 7,545 — — Total $ 9,933 $ 8,987 $ 946 $ — 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 September 30, 2016. 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 and nine months ended September 30, 2016 and 2015. The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Investment securities: Long-term investments 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. Short-term investments 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.

Debt

Debt	9 Months Ended
	Sep. 30, 2016
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 4.5%, or 1.25% 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 2018, or such extended maturity date if the revolving line of credit is automatically renewed. The revolving line of credit auto-renews annually unless canceled by the bank. The credit agreement requires the Company to comply with various financial and non-financial covenants. As of September 30, 2016, the Company was in compliance with all covenants. This facility also currently has a compensating balance requirement of $0.5 million and an irrevocable standby letter of credit totaling $1.1 million , which reduces the amount available on the line of credit. As of September 30, 2016, the Company had $14.4 million available under its revolving line of credit. Borrowings on the revolving line of credit are limited to the lesser of $20.0 million in 2016 and 2015, and the total amount of cash and securities held by the Company's subsidiary, American Pet Insurance Company (APIC), less up to $3.0 million for obligations the Company may have outstanding for other ancillary services in the future. As of September 30, 2016, the Company had $4.0 million outstanding under this facility.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	Commitments and Contingencies During 2016, the Company entered into strategic marketing and service provider agreements, as well as other agreements with various parties. As of the September 30, 2016, these agreements resulted in an increase in future commitments from December 31, 2015 of $0.8 million for the remainder of 2016, $0.6 million in 2017 and $0.3 million in 2018. During 2016, the Company entered into a capital lease agreement. As of September 30, 2016, this agreement resulted in an increase in future commitments of $0.1 million for the remainder of 2016, $0.3 million in 2017 and $0.2 million in 2018. The outcomes of the Company’s legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to the Company's 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.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [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) December 31, 2015 4,871,949 $ 3.71 $ 29,644 Granted 630,773 13.24 Exercised (894,572 ) 3.06 9,269 Forfeited (253,656 ) 7.79 September 30, 2016 4,354,494 4.99 51,855 Vested and exercisable at September 30, 2016 3,197,604 $ 2.95 $ 44,595 As of September 30, 2016, the stock options outstanding had a remaining contractual life of 5.9 years. Stock-based compensation expense includes stock options and restricted stock awards and units 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 350,631 shares of unvested restricted stock measured on a graded vesting schedule are expected to vest over the remaining service term of approximately 3.0 years. As of September 30, 2016, the Company had unrecognized stock-based compensation expense of $5.9 million , which is expected to vest over a weighted-average period of approximately 2.6 years. As of September 30, 2016, the Company had 1,122,183 unvested stock options and 355,329 restricted stock awards and units 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in thousands) Claims expenses $ 74 $ 58 $ 189 $ 160 Other cost of revenue 9 10 26 35 Sales and marketing 172 102 419 342 Technology and development 67 97 158 311 General and administrative 454 482 1,423 1,501 Total stock-based compensation expense $ 776 $ 749 $ 2,215 $ 2,349

Segments

Segments	9 Months Ended
	Sep. 30, 2016
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. The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Additionally, other operating expenses, such as sales and marketing expenses, are allocated to each segment and evaluated when material. 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue: Subscription business $ 44,629 $ 34,420 $ 125,934 $ 96,684 Other business 3,730 3,445 10,956 10,078 48,359 37,865 136,890 106,762 Claims expenses: Subscription business 32,088 24,455 90,709 69,352 Other business 2,165 2,149 6,614 6,090 34,253 26,604 97,323 75,442 Other cost of revenue: Subscription business 4,344 3,691 12,084 10,220 Other business 1,262 979 3,413 3,141 5,606 4,670 15,497 13,361 Gross profit: Subscription business 8,197 6,274 23,141 17,112 Other business 303 317 929 847 8,500 6,591 24,070 17,959 Sales and marketing: Subscription business 3,829 4,112 11,140 11,240 Other business 63 16 156 72 3,892 4,128 11,296 11,312 Technology and development 2,339 3,005 6,790 8,683 General and administrative 3,811 4,067 11,028 11,760 Operating loss $ (1,542 ) $ (4,609 ) $ (5,044 ) $ (13,796 ) The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States $ 38,799 $ 30,009 $ 110,024 $ 83,607 Canada 9,560 7,856 26,866 23,155 Total revenue $ 48,359 $ 37,865 $ 136,890 $ 106,762 Substantially all of the Company’s long-lived assets were located in the United States as of September 30, 2016 and December 31, 2015.

Nature of Operations and Summ15

Nature of Operations and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description and Basis of Presentation [Text Block]	Description of Business Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance plans for cats and dogs throughout the United States, Canada and Puerto Rico.
Description of Business and Basis of Presentation	Basis of Presentation The consolidated balance sheet data as of December 31, 2015 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, 2015 included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 17, 2016. 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 and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016, or for any other period.
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, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements.
Comprehensive Income, Policy [Policy Text Block]	Accumulated Other Comprehensive Loss There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2016 and 2015.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending short-term insurance contract disclosures and requiring more detailed disclosures to enable users of financial statements to understand information relating to liabilities for unpaid claims and claims adjustment expenses. Additionally, the amendments will also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate these liabilities. This guidance is effective for annual reporting periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. Early adoption of this guidance is permitted, and must be applied retrospectively by providing comparative disclosures for each period presented. The Company plans to adopt this guidance as of December 31, 2016. The Company has determined that although this guidance will not impact the operating results, financial condition or cash flows, additional disclosures will be required in the Company's Form 10-K and Form 10-Q upon adoption. In November 2015, the FASB issued an ASU amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current on the consolidated balance sheet. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The ASU may be adopted either prospectively or retrospectively. The Company plans to prospectively adopt this guidance as of January 1, 2017. The Company anticipates that this guidance will not have a material impact on the financial statements resulting from the reclassification of deferred taxes to non-current. The Company will continue to monitor the impact of this guidance. In February 2016, the FASB issued an ASU amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the balance sheet. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2019. The Company is in the process of assessing the impact of this guidance. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Additionally, tax withholding of shares will be allowed up to the employees’ maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2017. The Company has determined the guidance for estimating forfeitures does not currently have a material impact to the financial statements; however, the Company will continue to monitor the impact of this guidance. In August 2016, the FASB issued an ASU which addresses eight specific cash flow issues intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This ASU is effective for fiscal periods beginning after December 15, 2017 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2018. The Company is in the process of assessing the impact of this guidance.

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The following potentially dilutive equity securities were not included in the diluted net loss per common share calculation because they would have had an antidilutive effect: As of September 30, 2016 2015 Stock options 4,354,494 4,991,047 Restricted stock awards and units 355,329 474,522 Warrants 869,999 869,999

Investment Securities Available

Investment Securities Available-for-Sale (Tables)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 and December 31, 2015 (in thousands): Amortized Gross Fair As of September 30, 2016 Available-for-sale: Foreign deposits $ 1,521 $ — $ 1,521 Municipal bond 1,000 (21 ) 979 $ 2,521 $ (21 ) $ 2,500 Short-term investments: U.S. Treasury securities $ 5,786 $ — $ 5,786 Certificates of deposit 708 — 708 U.S. government funds 22,226 — 22,226 $ 28,720 $ — $ 28,720 Amortized Gross Fair As of December 31, 2015 Available-for-sale: Foreign deposits $ 1,442 $ — $ 1,442 Municipal bond 1,000 (54 ) 946 $ 2,442 $ (54 ) $ 2,388 Short-term investments: U.S. Treasury securities $ 5,683 $ — $ 5,683 Certificates of deposit 1,551 — 1,551 U.S. government funds 18,054 — 18,054 $ 25,288 $ — $ 25,288
Available-for-sale Securities [Table Text Block]	Maturities of debt securities classified as available-for-sale were as follows (in thousands): September 30, 2016 Amortized Fair Available-for-sale: Due under one year $ — $ — Due after one year through five years 1,521 1,521 Due after five years through ten years 1,000 979 Due after ten years — — $ 2,521 $ 2,500

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,521 $ 1,521 $ — $ — Municipal bond 979 — 979 — Money market funds 7,325 7,325 — — Total $ 9,825 $ 8,846 $ 979 $ — As of December 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Foreign deposits $ 1,442 $ 1,442 $ — $ — Municipal bond 946 — 946 — Money market funds 7,545 7,545 — — Total $ 9,933 $ 8,987 $ 946 $ —

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
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) December 31, 2015 4,871,949 $ 3.71 $ 29,644 Granted 630,773 13.24 Exercised (894,572 ) 3.06 9,269 Forfeited (253,656 ) 7.79 September 30, 2016 4,354,494 4.99 51,855 Vested and exercisable at September 30, 2016 3,197,604 $ 2.95 $ 44,595 As of September 30, 2016, the stock options outstanding had a remaining contractual life of 5.9 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in thousands) Claims expenses $ 74 $ 58 $ 189 $ 160 Other cost of revenue 9 10 26 35 Sales and marketing 172 102 419 342 Technology and development 67 97 158 311 General and administrative 454 482 1,423 1,501 Total stock-based compensation expense $ 776 $ 749 $ 2,215 $ 2,349
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) December 31, 2015 4,871,949 $ 3.71 $ 29,644 Granted 630,773 13.24 Exercised (894,572 ) 3.06 9,269 Forfeited (253,656 ) 7.79 September 30, 2016 4,354,494 4.99 51,855 Vested and exercisable at September 30, 2016 3,197,604 $ 2.95 $ 44,595 As of September 30, 2016, the stock options outstanding had a remaining contractual life of 5.9 years. Stock-based compensation expense includes stock options and restricted stock awards and units 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 350,631 shares of unvested restricted stock measured on a graded vesting schedule are expected to vest over the remaining service term of approximately 3.0 years. As of September 30, 2016, the Company had unrecognized stock-based compensation expense of $5.9 million , which is expected to vest over a weighted-average period of approximately 2.6 years. As of September 30, 2016, the Company had 1,122,183 unvested stock options and 355,329 restricted stock awards and units 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in thousands) Claims expenses $ 74 $ 58 $ 189 $ 160 Other cost of revenue 9 10 26 35 Sales and marketing 172 102 419 342 Technology and development 67 97 158 311 General and administrative 454 482 1,423 1,501 Total stock-based compensation expense $ 776 $ 749 $ 2,215 $ 2,349

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2016
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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Revenue: Subscription business $ 44,629 $ 34,420 $ 125,934 $ 96,684 Other business 3,730 3,445 10,956 10,078 48,359 37,865 136,890 106,762 Claims expenses: Subscription business 32,088 24,455 90,709 69,352 Other business 2,165 2,149 6,614 6,090 34,253 26,604 97,323 75,442 Other cost of revenue: Subscription business 4,344 3,691 12,084 10,220 Other business 1,262 979 3,413 3,141 5,606 4,670 15,497 13,361 Gross profit: Subscription business 8,197 6,274 23,141 17,112 Other business 303 317 929 847 8,500 6,591 24,070 17,959 Sales and marketing: Subscription business 3,829 4,112 11,140 11,240 Other business 63 16 156 72 3,892 4,128 11,296 11,312 Technology and development 2,339 3,005 6,790 8,683 General and administrative 3,811 4,067 11,028 11,760 Operating loss $ (1,542 ) $ (4,609 ) $ (5,044 ) $ (13,796 )
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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States $ 38,799 $ 30,009 $ 110,024 $ 83,607 Canada 9,560 7,856 26,866 23,155 Total revenue $ 48,359 $ 37,865 $ 136,890 $ 106,762

Nature of Operations and Summ21

Nature of Operations and Summary of Significant Accounting Policies (Details) Narrative - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 0	$ 0	$ 0	$ 0
Accumulated other comprehensive loss: unrealized loss on available for sale securities	100		100		$ 100
Unrealized foreign currency gain (loss)	$ (96)	$ (274)	$ 204	$ (347)

Net Loss per Share (Details) Sc

Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,354,494	4,871,949
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	4,354,494		4,991,047
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Restricted stock, outstanding	355,329		474,522
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common shares attributable to dilutive effect of warrants	869,999		869,999

Investment Securities (Details)

Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investment [Line Items]
Held-to-maturity securities, amortized cost	$ 28,720	$ 25,288
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	28,720	25,288
Available-for-sale securities, amortized cost	2,521	2,442
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	21	54
Available-for-sale securities, gross unrealized holding losses	(100)	(100)
Marketable Securities, Noncurrent	2,500	2,388
Available-for-sale securities, fair value	2,500	2,388
Deposits [Member]
Investment [Line Items]
Available-for-sale securities, amortized cost	1,521	1,442
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	0
Available-for-sale securities, gross unrealized holding losses		0
Marketable Securities, Noncurrent	1,521	1,442
Available-for-sale securities, fair value	1,521	1,442
Municipal Bonds [Member]
Investment [Line Items]
Available-for-sale securities, amortized cost	1,000	1,000
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	21	54
Marketable Securities, Noncurrent	979	946
Available-for-sale securities, fair value	979	946
U.S. Treasury securities
Investment [Line Items]
Held-to-maturity securities, amortized cost	5,786	5,683
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	5,786	5,683
Certificates of deposit
Investment [Line Items]
Held-to-maturity securities, amortized cost	708	1,551
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	708	1,551
US government debt securities
Investment [Line Items]
Held-to-maturity securities, amortized cost	22,226	18,054
Held-to-maturity securities, gross unrealized holding losses	0	0
Held-to-maturity securities, fair value	$ 22,226	$ 18,054

Investment Securities (Detail24

Investment Securities (Details) Narrative - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Accumulated other comprehensive loss: unrealized loss on available for sale securities	$ 100	$ 100
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	979
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 1,000	$ 900

Investment Securities (Detail25

Investment Securities (Details) Held-to-Maturity - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Held-to-maturity securities, amortized cost	$ 28,720	$ 25,288
Held-to-maturity securities, fair value	$ 28,720	$ 25,288

Investment Securities (Detail26

Investment Securities (Details) Available-for-Sale - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	$ 1,000	$ 900
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	1,521
Available-for-sale securities, debt maturities, year two through five, fair value	1,521
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	979
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	2,521	$ 2,442
Available-for-sale securities, debt maturities, fair value	$ 2,500

Fair Value (Details) Unobservab

Fair Value (Details) Unobservable - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	$ 2,500	$ 2,388
Assets, Fair Value Disclosure	9,825	9,933
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	8,846	8,987
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, Fair Value Disclosure	979	946
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	7,325	7,545
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	7,325	7,545
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	979	946
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	979	946
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
Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	1,521	1,442
Deposits [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	1,521	1,442
Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Noncurrent	0	0
Deposits [Member] | 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) Narrative

Fair Value (Details) Narrative - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	$ 0	$ 0	$ 0	$ 0

Debt (Details) Narrative

Debt (Details) Narrative - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Line of credit facility, interest rate description	greater of 4.5%, or 1.25% plus the prime rate
Compensating balance	$ 0.5
Line of Credit Facility, Maximum Amount Outstanding During Period	20	$ 20
Line of Credit Facility, Ancillary Services	3
Line of Credit, Current	4
Letters of Credit Outstanding, Amount	1.1
Line of Credit Facility, Remaining Borrowing Capacity	$ 14.4

Commitment and Contingencies (D

Commitment and Contingencies (Details) Narrative $ in Millions	Sep. 30, 2016USD ($)
Contractual Commitments
Six Months Ended December 31, 2016	$ 0.8
Year Ended December 31, 2017	0.6
Year Ended December 31, 2018	0.3
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Six Months Ended December 31, 2016	0.1
Year Ended December 31, 2017	0.3
Year Ended December 31, 2018	$ 0.2

Stock-based Compensation (Detai

Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation, options, forfeited, weighted-average exercise price	$ 7.79
Stock-based compensation, options, outstanding, number of shares	4,354,494	4,871,949
Stock-based compensation, options, outstanding, weighted-average exercise price	$ 4.99	$ 3.71
Stock-based compensation, options, outstanding, aggregate intrinsic value	$ 51,855	$ 29,644
Stock-based compensation, options, granted, number of options	630,773
Stock-based compensation, options, granted, weighted-average exercise price	$ 13.24
Stock-based compensation, options, exercised, weighted-average exercise price	$ 3.06
Stock-based compensation, options, exercised	(894,572)
Stock-based compensation, options, exercised, aggregate intrinsic value	$ 9,269
Stock-based compensation, options, forfeited	(253,656)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	3,197,604
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	$ 2.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value	$ 44,595

Stock-based Compensation (Det32

Stock-based Compensation (Details) Expense Category - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 776	$ 749	$ 2,215	$ 2,349
Claims expense
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	74	58	189	160
Other Expense [Member]
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	9	10	26	35
Sales and marketing
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	172	102	419	342
Technology services costs [Member]
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	67	97	158	311
General and administrative
Stock-based Compensation
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost	$ 454	$ 482	$ 1,423	$ 1,501

Stock-based Compensation (Det33

Stock-based Compensation (Details) Narrative $ in Millions	9 Months Ended	189 Months Ended
	Sep. 30, 2016USD ($)shares	Sep. 30, 2016USD ($)shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $		$ 0
Unvested Portion of Restricted Stock Grant with IPO Performance Condition | shares	350,631	350,631
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $	$ 5.9	$ 5.9
Unvested RSUs with IPO Performance Condition, Remaining Vesting Period	3 years
Remaining contractual life, share-based payments, weighted average	5 years 11 months
Share-based compensation arrangement , non-employee, weighted average remaining vesting period	2 years 7 months
Share-based compensation arrangement by share-based payment award, options, nonvested, number of shares | shares	1,122,183	1,122,183

Segments (Details) Business Seg

Segments (Details) Business Segment - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenue	$ 48,359	$ 37,865	$ 136,890	$ 106,762
Claims expenses	34,253	26,604	97,323	75,442
Other cost of revenue	5,606	4,670	15,497	13,361
Gross profit	8,500	6,591	24,070	17,959
Sales and marketing	3,892	4,128	11,296	11,312
Technology Services Costs	2,339	3,005	6,790	8,683
General and administrative	3,811	4,067	11,028	11,760
Operating loss	(1,542)	(4,609)	(5,044)	(13,796)
Subscription business
Segment Reporting Information [Line Items]
Revenue	44,629	34,420	125,934	96,684
Claims expenses	32,088	24,455	90,709	69,352
Other cost of revenue	4,344	3,691	12,084	10,220
Gross profit	8,197	6,274	23,141	17,112
Sales and marketing	3,829	4,112	11,140	11,240
Other business
Segment Reporting Information [Line Items]
Revenue	3,730	3,445	10,956	10,078
Claims expenses	2,165	2,149	6,614	6,090
Other cost of revenue	1,262	979	3,413	3,141
Gross profit	303	317	929	847
Sales and marketing	$ 63	$ 16	$ 156	$ 72

Segments (Details) Revenue by G

Segments (Details) Revenue by Geography - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 48,359	$ 37,865	$ 136,890	$ 106,762
CANADA
Segment Reporting Information [Line Items]
Revenues	9,560	7,856	26,866	23,155
UNITED STATES
Segment Reporting Information [Line Items]
Revenues	$ 38,799	$ 30,009	$ 110,024	$ 83,607