Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Entity [Abstract] | ||
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, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,039,804 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 63,118 | $ 48,359 | $ 176,122 | $ 136,890 |
Cost of Revenue [Abstract] | ||||
Claims expenses | 43,453 | 34,253 | 123,649 | 97,323 |
Other cost of revenue | 7,858 | 5,606 | 21,160 | 15,497 |
Gross profit | 11,807 | 8,500 | 31,313 | 24,070 |
Operating Expenses [Abstract] | ||||
Sales and marketing | 4,862 | 3,892 | 13,323 | 11,296 |
Technology and Development | 2,471 | 2,339 | 7,196 | 6,790 |
General and administrative | 4,017 | 3,811 | 12,274 | 11,028 |
Total operating expenses | 11,350 | 10,042 | 32,793 | 29,114 |
Operating income (loss) | 457 | (1,542) | (1,480) | (5,044) |
Interest expense | 124 | 66 | 370 | 137 |
Other (income) expense, net | (99) | 16 | (1,239) | (39) |
Income (Loss) before income taxes | 432 | (1,624) | (611) | (5,142) |
Income tax expense | 26 | 13 | 54 | 31 |
Net income (loss) | $ 406 | $ (1,637) | $ (665) | $ (5,173) |
Net income (loss) per share [Abstract] | ||||
Earnings Per Share, Basic and Diluted | $ 0.01 | $ (0.06) | $ (0.02) | $ (0.18) |
Weighted-average common shares outstanding | ||||
Weighted Average Number of Shares Outstanding, Basic | 30,037,282 | 28,732,417 | 29,500,958 | 28,362,084 |
Weighted Average Number of Shares Outstanding, Diluted | 33,113,981 | 28,732,417 | 29,500,958 | 28,362,084 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 406 | $ (1,637) | $ (665) | $ (5,173) |
Change in foreign currency translation adjustments | 193 | (96) | 317 | 204 |
Change in net gains on available-for-sale debt securities | 1 | 25 | 9 | 33 |
Other comprehensive income (loss), net of taxes | 194 | (71) | 326 | 237 |
Comprehensive Income (Loss) | $ 600 | $ (1,708) | $ (339) | $ (4,936) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 25,249 | $ 23,637 |
Short-term Investments | 34,031 | 29,570 |
Accounts and other receivables | 20,315 | 10,118 |
Prepaid expenses and other assets | 2,987 | 2,062 |
Total current assets | 82,582 | 65,387 |
Restricted Cash | 600 | 600 |
Long-Term Investments, at fair value | 3,084 | 2,579 |
Equity Method Investments | 0 | 271 |
Property and equipment, net | 7,958 | 8,464 |
Intangible assets, net | 4,965 | 4,910 |
Other Long-Term Assets | 2,739 | 134 |
Total assets | 101,928 | 82,345 |
Liabilities and Equity [Abstract] | ||
Accounts payable | 2,327 | 2,006 |
Accrued liabilities and other current liabilities | 7,813 | 5,416 |
Claims reserve | 11,255 | 9,521 |
Deferred Revenue | 22,656 | 13,463 |
Total current liabilities | 44,051 | 30,406 |
Long-term debt | 7,299 | 4,767 |
Deferred tax liabilities | 1,623 | 1,623 |
Other liabilities | 1,003 | 834 |
Total liabilities | 53,976 | 37,630 |
Common stock | 0 | 0 |
Preferred Stock | 0 | 0 |
Additional paid-in capital | 133,150 | 129,574 |
Accumulated other comprehensive loss | (51) | (377) |
Accumulated deficit | (81,946) | (81,281) |
Treasury stock, at cost | (3,201) | (3,201) |
Stockholders' Equity Attributable to Parent | 47,952 | 44,715 |
Total liabilities and stockholders' equity | $ 101,928 | $ 82,345 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Short-term Investments, Fair Value | $ 34,029 | $ 29,570 |
Available-for-sale Securities, Amortized Cost Basis | $ 3,083 | $ 2,587 |
Common Stock [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 30,690,129 | 30,156,247 |
Common Stock, Shares, Outstanding | 30,032,829 | 29,498,947 |
Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
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 | 657,300 | 657,300 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Net Cash Provided by Operating Activities [Abstract] | ||
Net loss | $ (665) | $ (5,173) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and Amortization | 3,208 | 2,617 |
Stock-based compensation expense | 2,564 | 2,215 |
Gain on Sale of Equity Investment | (1,036) | 0 |
Other, Net | 243 | 218 |
Increase (Decrease) in Operating Assets [Abstract] | ||
Accounts and other receivables | (10,164) | (2,023) |
Prepaid expenses and other assets | (297) | 217 |
Accounts Payable, Accrued Liabilities, and Other Liabilities | 2,122 | (625) |
Claims Reserve | 1,639 | 2,043 |
Deferred revenue | 9,075 | 2,079 |
Net cash provided by operating activities | 6,689 | 1,568 |
Net Cash Provided by Investing Activities [Abstract] | ||
Purchases of Investment Securities | (20,704) | (15,992) |
Maturities of Investment Securities | 15,878 | 12,577 |
Proceeds from Sale of Equity Method Investment | 1,402 | 0 |
Purchases of property and equipment | (2,247) | (1,546) |
Other Investments | (2,762) | (130) |
Net cash used in investing activities | (8,433) | (5,091) |
Net Cash Provided by Financing Activities [Abstract] | ||
Proceeds from exercise of stock options | 2,082 | 2,736 |
Shares withheld to satisfy tax withholding | (1,170) | (662) |
Proceeds from Debt financing, net of financing fees | 2,420 | 3,988 |
Payments on Financing Obligation | (412) | (110) |
Net cash provided by financing activities | 2,920 | 5,952 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | 436 | 241 |
Net Increase in Cash, Cash Equivalents, and Restricted Cash | 1,612 | 2,670 |
Cash, Cash Equivalents, and Restricted Cash at beginning of period | 24,237 | 17,956 |
Cash, Cash Equivalents, and Restricted Cash, End of Period | 25,849 | 20,626 |
Supplemental Cash Flow Information [Abstract] | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | 531 | 81 |
Property and Equipment Acquired Under Capital Leases | $ 689 | $ 615 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Significant Accounting Policies Description of Business and Basis of Presentation Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada and Puerto Rico. The financial data as of December 31, 2016 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 15, 2017 (the 2016 10-K). The Company's accounting policies are described in Note 1 to the financial statements included in the 2016 10-K. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim 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. 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 amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2016 10-K for additional discussion of these estimates and assumptions. Accumulated Other Comprehensive Loss There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2017 and 2016 . Accounting Pronouncements Adopted During Period In November 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current in the consolidated balance sheets. The Company adopted this ASU as of January 1, 2017 and has retrospectively applied the provisions of this standard. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The Company adopted this ASU as of January 1, 2017. As a result, the Company has elected to use actual forfeitures in the estimate of stock-based compensation expense. Additionally, the guidance related to the accounting for excess tax benefits and deficiencies resulted in an initial adjustment as of January 1, 2017 to the Company's net operating loss deferred tax asset to eliminate the Company's existing windfall pool amounting to $4.3 million , which was offset by an adjustment to the Company's valuation allowance. Finally, tax withholding of shares will be allowed up to the employee's maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award, subject to the Company's internal policies for making this election. Recent Accounting Pronouncements 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 consolidated balance sheets. 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 has determined this guidance will require recognition of a lease liability and corresponding asset on the consolidated balance sheets equal to the present value of minimum lease payments. The carrying amount of the asset is derived from the amount of the lease liability at the end of each reporting period. As of September 30, 2017 we are evaluating the impact of this on our consolidated financial statements and related disclosures. |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Earnings Per Share [Text Block] | Net Income (Loss) per Share Basic net income (loss) per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated using the weighted-average number of shares of common stock plus, when dilutive, potential common shares outstanding using the treasury-stock method. Potential common shares outstanding include stock options, unvested restricted stock, and warrants. The components of basic and diluted earnings per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) Basic earnings per share: Net income (loss) $ 406 $ (1,637 ) $ (665 ) $ (5,173 ) Shares used in computation: Weighted average common shares outstanding 30,037,282 28,732,417 29,500,958 28,362,084 Basic earnings per share $ 0.01 $ (0.06 ) $ (0.02 ) $ (0.18 ) Diluted earnings per share: Net income (loss) $ 406 $ (1,637 ) $ (665 ) $ (5,173 ) Shares used in computation: Weighted average common shares outstanding 30,037,282 28,732,417 29,500,958 28,362,084 Stock options 2,618,567 — — — Restricted stock units 919 — — — Warrants 457,213 — — — Weighted average number of shares 33,113,981 28,732,417 29,500,958 28,362,084 Diluted earnings per share $ 0.01 $ (0.06 ) $ (0.02 ) $ (0.18 ) The following potentially dilutive equity securities were not included in the diluted earnings per common share calculation because they would have had an antidilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock options 480,360 4,354,494 4,118,884 4,354,949 Restricted stock awards and units — 355,329 234,758 355,329 Warrants — 869,999 810,000 869,999 |
Investment Securities (Notes)
Investment Securities (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Investment [Text Block] | Investment Securities The amortized cost, gross unrealized holding gains and 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, 2017 and December 31, 2016 (in thousands): Amortized Gross Gross Fair As of September 30, 2017 Available-for-sale: Foreign deposits $ 2,083 $ — $ — $ 2,083 Municipal bond 1,000 1 — 1,001 $ 3,083 $ 1 $ — $ 3,084 Short-term investments: U.S. treasury securities $ 5,787 $ — $ (2 ) $ 5,785 Certificates of deposit 690 — — 690 U.S. government funds 27,554 — — 27,554 $ 34,031 $ — $ (2 ) $ 34,029 Amortized Gross Gross Fair As of December 31, 2016 Available-for-sale: Foreign deposits $ 1,587 $ — $ — $ 1,587 Municipal bond 1,000 — (8 ) 992 $ 2,587 $ — $ (8 ) $ 2,579 Short-term investments: U.S. treasury securities $ 5,791 $ — $ — $ 5,791 Certificates of deposit 707 — — 707 U.S. government funds 23,072 — — 23,072 $ 29,570 $ — $ — $ 29,570 Maturities of debt securities classified as available-for-sale were as follows (in thousands): September 30, 2017 Amortized Fair Available-for-sale: Due after one year through five years $ 2,083 $ 2,083 Due after five years through ten years 1,000 1,001 $ 3,083 $ 3,084 The Company evaluated its securities for other-than-temporary impairment and considers the decline in market value for the securities to be primarily attributable to current economic and market conditions. For debt securities, the Company does not intend to sell, nor is it more likely than not that the Company will be required to sell, the securities prior to the recovery of the amortized cost basis which may be at maturity. |
Investments [Text Block] | The amortized cost, gross unrealized holding gains and 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, 2017 and December 31, 2016 (in thousands): Amortized Gross Gross Fair As of September 30, 2017 Available-for-sale: Foreign deposits $ 2,083 $ — $ — $ 2,083 Municipal bond 1,000 1 — 1,001 $ 3,083 $ 1 $ — $ 3,084 Short-term investments: U.S. treasury securities $ 5,787 $ — $ (2 ) $ 5,785 Certificates of deposit 690 — — 690 U.S. government funds 27,554 — — 27,554 $ 34,031 $ — $ (2 ) $ 34,029 Amortized Gross Gross Fair As of December 31, 2016 Available-for-sale: Foreign deposits $ 1,587 $ — $ — $ 1,587 Municipal bond 1,000 — (8 ) 992 $ 2,587 $ — $ (8 ) $ 2,579 Short-term investments: U.S. treasury securities $ 5,791 $ — $ — $ 5,791 Certificates of deposit 707 — — 707 U.S. government funds 23,072 — — 23,072 $ 29,570 $ — $ — $ 29,570 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands): As of September 30, 2017 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 2,083 2,083 — Municipal bond 1,001 — 1,001 Money market funds 5,679 5,679 — Total $ 9,363 $ 8,362 $ 1,001 As of December 31, 2016 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 1,587 1,587 — Municipal bond 992 — 992 Money market funds 7,033 7,033 — Total $ 10,212 $ 9,220 $ 992 The Company measures the fair value of restricted cash, foreign deposits, and money market funds based on quoted prices in active markets for identical assets. The fair value of the municipal bond is based on either recent trades in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. As of September 30, 2017 , the Company's other long-term assets balance included a $2.6 million note receivable, recorded at its estimated collectible amount, plus accrued interest. The Company estimates that the carrying value of the note receivable approximates the fair value. The estimated fair value represents a Level 3 measurement within the fair value hierarchy, and is based on market interest rates and the assessed creditworthiness of the third party. The Company estimates the fair value of 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, 2017 and December 31, 2016 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt The Company has a revolving line of credit of up to $30.0 million , secured by any and all interests in the Company's assets that are not otherwise restricted. Interest on the revolving line of credit is payable monthly at the greater of 4.5%, or 1.25% plus the prime rate . The borrowing agreement includes other ancillary services and letters of credit of up to $4.5 million and $3.0 million as of September 30, 2017 and December 31, 2016 , respectively. The facility also requires a deposit of restricted cash of $0.6 million . The agreement was amended during the current year to extend the maturity date to December 2019. The credit agreement requires the Company to comply with various financial and non-financial covenants. As of September 30, 2017 and December 31, 2016 , the Company was in compliance with all covenants. Borrowings on the revolving line of credit are limited to the lesser of $30.0 million and the total amount of cash and securities held by the Company's insurance subsidiaries (American Pet Insurance Company and Wyndham Insurance Company (SAC) Limited Segregated Account AX). As of September 30, 2017 , available borrowing capacity on the line of credit was $21.0 million , with an outstanding balance of $1.5 million for ancillary services and letters of credit, and borrowings under the facility of $7.5 million , recorded net of financing fees of $0.2 million . |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies From time to time, the Company is subject to litigation matters and claims arising from the ordinary course of business. The Company records a provision for a liability relating to legal matters when it is both probable that a material liability has been incurred and the amount of the loss can be reasonably estimated. At this time, the Company does not believe any such matters to be material individually or in the aggregate. These views are subject to change following the outcome of future events or the results of future developments. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
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) Outstanding as of December 31, 2016 4,123,023 $ 5.06 $ 43,185 Granted 648,589 17.61 Exercised (581,865 ) 3.58 8,134 Forfeited (70,863 ) 11.56 Outstanding as of September 30, 2017 4,118,884 7.13 79,408 Vested and Exercisable at September 30, 2017 2,975,063 $ 4.23 $ 65,994 As of September 30, 2017 , the stock options outstanding had a weighted-average remaining contractual life of 5.7 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 consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Claims expenses $ 101 $ 74 $ 260 $ 189 Other cost of revenue 69 9 172 26 Sales and marketing 165 172 550 419 Technology and development 57 67 166 158 General and administrative 503 454 1,416 1,423 Total stock-based compensation expense $ 895 $ 776 $ 2,564 $ 2,215 As of September 30, 2017 , for all employees, the Company had 1,124,951 unvested stock options and 234,758 restricted stock awards and units that are expected to vest. Total stock-based compensation cost of $6.8 million related to unvested awards not yet recognized is expected to be recognized over a weighted-average period of approximately 2.8 years. |
Claims Reserve
Claims Reserve | 9 Months Ended |
Sep. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | Claims Reserve The claims reserve includes unpaid claims and claims adjustment expenses and an estimate of claims that have been incurred but not yet reported (IBNR) to the Company. The estimate, which involves actuarial projections, is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated claims patterns, including expected future trends in the size and frequency of the average claim. Reserve estimates are continually refined as claims are reported and settled. Changes in management's assumptions and estimates may have a relatively large impact to the claims reserve and associated expense. This estimate is made for each of the Company's 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 that is not directly marketed to consumers. Summarized below are the changes in the total liability for the Company's subscription business segment: Nine Months Ended September 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 8,538 $ 5,384 Claims incurred during the period related to: Current year 113,833 90,188 Prior years (85 ) 521 Total claims incurred 113,748 90,709 Claims paid during period related to: Current year 104,501 82,761 Prior years 7,533 5,681 Total claims paid 112,034 88,442 Non-cash claims expense 306 279 Claims reserve at end of period $ 9,946 $ 7,372 The Company’s claim reserve for the subscription business segment increased $1.4 million from $8.5 million at December 31, 2016 to $9.9 million at September 30, 2017 . This change was comprised of $113.7 million in claims expense incurred during the period less $112.0 million in claims expense paid during the period. The $113.7 million in claims expense incurred includes a reduction of $0.1 million to the reserves relating to prior years, which is the result of ongoing analysis of recent claims trends. Summarized below are the changes in total liability for the Company's other business segment: Nine Months Ended September 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 983 $ 890 Claims incurred during the period related to: Current year 10,074 6,718 Prior years (173 ) (104 ) Total claims incurred 9,901 6,614 Claims paid during period related to: Current year 8,786 5,765 Prior years 789 749 Total claims paid 9,575 6,514 Non-cash claims expense — — Claims reserve at end of period $ 1,309 $ 990 The Company’s claim reserve for the other business segment increased $0.3 million from $1.0 million at December 31, 2016 to $1.3 million at September 30, 2017 . This change was comprised of $9.9 million in claims expense incurred during the period less $9.6 million in claims expense paid during the period. The $9.9 million in claims expense incurred includes a reduction of $0.2 million to the reserves relating to prior years, which is the result of ongoing analysis of recent claims trends. Claims Reserve by Loss Year The total claims reserve as of September 30, 2017 for the subscription business segment relates to activity incurred during the years as follows (in thousands): As of September 30, 2017 Year Incurred 2015 $ 192 2016 727 2017 9,027 $ 9,946 The total claims reserve as of September 30, 2017 for the other business segment relates to activity incurred during the years as follows (in thousands): As of September 30, 2017 Year Incurred 2015 $ 2 2016 19 2017 1,288 $ 1,309 |
Equity Method Investment (Notes
Equity Method Investment (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Equity Method Investment In June 2017, the Company sold its share of an investment previously accounted for under the equity method. The sale resulted in a gain of $1.0 million recorded within other income on the consolidated statement of operations for the nine months ended September 30, 2017. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segments The Company has 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 that 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, 2017 2016 2017 2016 Revenue: Subscription business $ 56,493 $ 44,629 $ 159,363 $ 125,934 Other business 6,625 3,730 16,759 10,956 63,118 48,359 176,122 136,890 Claims expenses: Subscription business 39,761 32,088 113,748 90,709 Other business 3,692 2,165 9,901 6,614 43,453 34,253 123,649 97,323 Other cost of revenue: Subscription business 5,454 4,344 15,304 12,084 Other business 2,404 1,262 5,856 3,413 7,858 5,606 21,160 15,497 Gross profit: Subscription business 11,278 8,197 30,311 23,141 Other business 529 303 1,002 929 11,807 8,500 31,313 24,070 Sales and marketing: Subscription business 4,811 3,829 13,161 11,140 Other business 51 63 162 156 4,862 3,892 13,323 11,296 Technology and development 2,471 2,339 7,196 6,790 General and administrative 4,017 3,811 12,274 11,028 Operating income (loss) $ 457 $ (1,542 ) $ (1,480 ) $ (5,044 ) 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, 2017 2016 2017 2016 United States $ 50,506 $ 38,799 $ 141,946 $ 110,024 Canada 12,612 9,560 34,176 26,866 Total revenue $ 63,118 $ 48,359 $ 176,122 $ 136,890 Substantially all of the Company’s long-lived assets were located in the United States as of September 30, 2017 and December 31, 2016 . |
Nature of Operations and Summ17
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business and Basis of Presentation Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada and Puerto Rico. |
Description of Business and Basis of Presentation | The financial data as of December 31, 2016 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 15, 2017 (the 2016 10-K). The Company's accounting policies are described in Note 1 to the financial statements included in the 2016 10-K. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period. |
Reclassifications [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. |
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 amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2016 10-K for additional discussion of these estimates and assumptions. |
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, 2017 and 2016 . |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Adopted During Period In November 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current in the consolidated balance sheets. The Company adopted this ASU as of January 1, 2017 and has retrospectively applied the provisions of this standard. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The Company adopted this ASU as of January 1, 2017. As a result, the Company has elected to use actual forfeitures in the estimate of stock-based compensation expense. Additionally, the guidance related to the accounting for excess tax benefits and deficiencies resulted in an initial adjustment as of January 1, 2017 to the Company's net operating loss deferred tax asset to eliminate the Company's existing windfall pool amounting to $4.3 million , which was offset by an adjustment to the Company's valuation allowance. Finally, tax withholding of shares will be allowed up to the employee's maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award, subject to the Company's internal policies for making this election. Recent Accounting Pronouncements 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 consolidated balance sheets. 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 has determined this guidance will require recognition of a lease liability and corresponding asset on the consolidated balance sheets equal to the present value of minimum lease payments. The carrying amount of the asset is derived from the amount of the lease liability at the end of each reporting period. As of September 30, 2017 we are evaluating the impact of this on our consolidated financial statements and related disclosures. |
Fair Value Notes Receivable (Po
Fair Value Notes Receivable (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | As of September 30, 2017 , the Company's other long-term assets balance included a $2.6 million note receivable, recorded at its estimated collectible amount, plus accrued interest. The Company estimates that the carrying value of the note receivable approximates the fair value. The estimated fair value represents a Level 3 measurement within the fair value hierarchy, and is based on market interest rates and the assessed creditworthiness of the third party. |
Claims Reserve Claims Reserve (
Claims Reserve Claims Reserve (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Claims Reserve [Abstract] | |
Liability Reserve Estimate, Policy [Policy Text Block] | The claims reserve includes unpaid claims and claims adjustment expenses and an estimate of claims that have been incurred but not yet reported (IBNR) to the Company. The estimate, which involves actuarial projections, is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated claims patterns, including expected future trends in the size and frequency of the average claim. Reserve estimates are continually refined as claims are reported and settled. Changes in management's assumptions and estimates may have a relatively large impact to the claims reserve and associated expense. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The components of basic and diluted earnings per share were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) Basic earnings per share: Net income (loss) $ 406 $ (1,637 ) $ (665 ) $ (5,173 ) Shares used in computation: Weighted average common shares outstanding 30,037,282 28,732,417 29,500,958 28,362,084 Basic earnings per share $ 0.01 $ (0.06 ) $ (0.02 ) $ (0.18 ) Diluted earnings per share: Net income (loss) $ 406 $ (1,637 ) $ (665 ) $ (5,173 ) Shares used in computation: Weighted average common shares outstanding 30,037,282 28,732,417 29,500,958 28,362,084 Stock options 2,618,567 — — — Restricted stock units 919 — — — Warrants 457,213 — — — Weighted average number of shares 33,113,981 28,732,417 29,500,958 28,362,084 Diluted earnings per share $ 0.01 $ (0.06 ) $ (0.02 ) $ (0.18 ) |
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 earnings per common share calculation because they would have had an antidilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock options 480,360 4,354,494 4,118,884 4,354,949 Restricted stock awards and units — 355,329 234,758 355,329 Warrants — 869,999 810,000 869,999 |
Investment Securities Available
Investment Securities Available-for-Sale (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Investment [Table Text Block] | The amortized cost, gross unrealized holding gains and 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, 2017 and December 31, 2016 (in thousands): Amortized Gross Gross Fair As of September 30, 2017 Available-for-sale: Foreign deposits $ 2,083 $ — $ — $ 2,083 Municipal bond 1,000 1 — 1,001 $ 3,083 $ 1 $ — $ 3,084 Short-term investments: U.S. treasury securities $ 5,787 $ — $ (2 ) $ 5,785 Certificates of deposit 690 — — 690 U.S. government funds 27,554 — — 27,554 $ 34,031 $ — $ (2 ) $ 34,029 Amortized Gross Gross Fair As of December 31, 2016 Available-for-sale: Foreign deposits $ 1,587 $ — $ — $ 1,587 Municipal bond 1,000 — (8 ) 992 $ 2,587 $ — $ (8 ) $ 2,579 Short-term investments: U.S. treasury securities $ 5,791 $ — $ — $ 5,791 Certificates of deposit 707 — — 707 U.S. government funds 23,072 — — 23,072 $ 29,570 $ — $ — $ 29,570 |
Available-for-sale Securities [Table Text Block] | Maturities of debt securities classified as available-for-sale were as follows (in thousands): September 30, 2017 Amortized Fair Available-for-sale: Due after one year through five years $ 2,083 $ 2,083 Due after five years through ten years 1,000 1,001 $ 3,083 $ 3,084 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value, asset & liabilities measured on recurring basis [Table Text Block] | The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands): As of September 30, 2017 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 2,083 2,083 — Municipal bond 1,001 — 1,001 Money market funds 5,679 5,679 — Total $ 9,363 $ 8,362 $ 1,001 As of December 31, 2016 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 1,587 1,587 — Municipal bond 992 — 992 Money market funds 7,033 7,033 — Total $ 10,212 $ 9,220 $ 992 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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) Outstanding as of December 31, 2016 4,123,023 $ 5.06 $ 43,185 Granted 648,589 17.61 Exercised (581,865 ) 3.58 8,134 Forfeited (70,863 ) 11.56 Outstanding as of September 30, 2017 4,118,884 7.13 79,408 Vested and Exercisable at September 30, 2017 2,975,063 $ 4.23 $ 65,994 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | 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 consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Claims expenses $ 101 $ 74 $ 260 $ 189 Other cost of revenue 69 9 172 26 Sales and marketing 165 172 550 419 Technology and development 57 67 166 158 General and administrative 503 454 1,416 1,423 Total stock-based compensation expense $ 895 $ 776 $ 2,564 $ 2,215 |
Claims Reserve (Tables)
Claims Reserve (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Summarized below are the changes in the total liability for the Company's subscription business segment: Nine Months Ended September 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 8,538 $ 5,384 Claims incurred during the period related to: Current year 113,833 90,188 Prior years (85 ) 521 Total claims incurred 113,748 90,709 Claims paid during period related to: Current year 104,501 82,761 Prior years 7,533 5,681 Total claims paid 112,034 88,442 Non-cash claims expense 306 279 Claims reserve at end of period $ 9,946 $ 7,372 The Company’s claim reserve for the subscription business segment increased $1.4 million from $8.5 million at December 31, 2016 to $9.9 million at September 30, 2017 . This change was comprised of $113.7 million in claims expense incurred during the period less $112.0 million in claims expense paid during the period. The $113.7 million in claims expense incurred includes a reduction of $0.1 million to the reserves relating to prior years, which is the result of ongoing analysis of recent claims trends. Summarized below are the changes in total liability for the Company's other business segment: Nine Months Ended September 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 983 $ 890 Claims incurred during the period related to: Current year 10,074 6,718 Prior years (173 ) (104 ) Total claims incurred 9,901 6,614 Claims paid during period related to: Current year 8,786 5,765 Prior years 789 749 Total claims paid 9,575 6,514 Non-cash claims expense — — Claims reserve at end of period $ 1,309 $ 990 The Company’s claim reserve for the other business segment increased $0.3 million from $1.0 million at December 31, 2016 to $1.3 million at September 30, 2017 . This change was comprised of $9.9 million in claims expense incurred during the period less $9.6 million in claims expense paid during the period. The $9.9 million in claims expense incurred includes a reduction of $0.2 million to the reserves relating to prior years, which is the result of ongoing analysis of recent claims trends. |
IBRN plus expected development on reported claims[Table Text Block] | The total claims reserve as of September 30, 2017 for the subscription business segment relates to activity incurred during the years as follows (in thousands): As of September 30, 2017 Year Incurred 2015 $ 192 2016 727 2017 9,027 $ 9,946 The total claims reserve as of September 30, 2017 for the other business segment relates to activity incurred during the years as follows (in thousands): As of September 30, 2017 Year Incurred 2015 $ 2 2016 19 2017 1,288 $ 1,309 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2017 2016 Revenue: Subscription business $ 56,493 $ 44,629 $ 159,363 $ 125,934 Other business 6,625 3,730 16,759 10,956 63,118 48,359 176,122 136,890 Claims expenses: Subscription business 39,761 32,088 113,748 90,709 Other business 3,692 2,165 9,901 6,614 43,453 34,253 123,649 97,323 Other cost of revenue: Subscription business 5,454 4,344 15,304 12,084 Other business 2,404 1,262 5,856 3,413 7,858 5,606 21,160 15,497 Gross profit: Subscription business 11,278 8,197 30,311 23,141 Other business 529 303 1,002 929 11,807 8,500 31,313 24,070 Sales and marketing: Subscription business 4,811 3,829 13,161 11,140 Other business 51 63 162 156 4,862 3,892 13,323 11,296 Technology and development 2,471 2,339 7,196 6,790 General and administrative 4,017 3,811 12,274 11,028 Operating income (loss) $ 457 $ (1,542 ) $ (1,480 ) $ (5,044 ) |
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, 2017 2016 2017 2016 United States $ 50,506 $ 38,799 $ 141,946 $ 110,024 Canada 12,612 9,560 34,176 26,866 Total revenue $ 63,118 $ 48,359 $ 176,122 $ 136,890 |
Nature of Operations and Summ26
Nature of Operations and Summary of Significant Accounting Policies (Details) Narrative - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 4.3 |
Net Loss per Share (Details) Co
Net Loss per Share (Details) Computation of Net Income (Loss) Per Share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income (loss) | $ 406 | $ (1,637) | $ (665) | $ (5,173) |
Weighted Average Number of Shares Outstanding, Basic | 30,037,282 | 28,732,417 | 29,500,958 | 28,362,084 |
Weighted Average Number of Shares Outstanding, Diluted | 33,113,981 | 28,732,417 | 29,500,958 | 28,362,084 |
Earnings Per Share [Abstract] | ||||
Earnings Per Share, Basic | $ 0.01 | $ (0.06) | $ (0.02) | $ (0.18) |
Earnings Per Share, Diluted | $ 0.01 | $ (0.06) | $ (0.02) | $ (0.18) |
Employee Stock Option [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,618,567 | 0 | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 919 | 0 | 0 | 0 |
Warrant [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 457,213 | 0 | 0 | 0 |
Net Loss per Share (Details) Sc
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 480,360 | 4,354,494 | 4,118,884 | 4,354,949 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 355,329 | 234,758 | 355,329 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 869,999 | 810,000 | 869,999 |
Investment Securities (Details)
Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | $ 3,083 | $ 2,587 |
Available-for-sale Securities, Gross Unrealized Gain | 1 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (8) |
Available-for-sale securities, fair value | 3,084 | 2,579 |
Short-term investments, amortized cost | 34,031 | 29,570 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | (2) | 0 |
Short-term Investments, fair value | 34,029 | 29,570 |
Deposits [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 2,083 | 1,587 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale securities, fair value | 2,083 | 1,587 |
Municipal Bonds [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 1,000 | 1,000 |
Available-for-sale Securities, Gross Unrealized Gain | 1 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (8) |
Available-for-sale securities, fair value | 1,001 | 992 |
U.S. Treasury securities | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 5,787 | 5,791 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | (2) | 0 |
Short-term Investments, fair value | 5,785 | 5,791 |
Certificates of deposit | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 690 | 707 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | 0 | 0 |
Short-term Investments, fair value | 690 | 707 |
US government debt securities | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 27,554 | 23,072 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | 0 | 0 |
Short-term Investments, fair value | $ 27,554 | $ 23,072 |
Investment Securities (Detail30
Investment Securities (Details) Available-for-Sale $ in Thousands | Sep. 30, 2017USD ($) |
Available-for-sale Securities [Abstract] | |
Available-for-sale securities, debt maturities, year two through five, amortized cost basis | $ 2,083 |
Available-for-sale securities, debt maturities, year two through five, fair value | 2,083 |
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 | 1,001 |
Available-for-sale securities, amortized cost | 3,083 |
Available-for-sale securities, debt maturities, fair value | $ 3,084 |
Fair Value (Details) Unobservab
Fair Value (Details) Unobservable - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | $ 600 | $ 600 |
Marketable Securities, Noncurrent | 3,084 | 2,579 |
Assets, Fair Value Disclosure | 9,363 | 10,212 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 8,362 | 9,220 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,001 | 992 |
Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 600 | 600 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 600 | 600 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 0 | 0 |
Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 2,083 | 1,587 |
Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 2,083 | 1,587 |
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 |
Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 1,001 | 992 |
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 | 1,001 | 992 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 5,679 | 7,033 |
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 | 5,679 | 7,033 |
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 |
Fair Value (Details) Narrative
Fair Value (Details) Narrative $ in Millions | Sep. 30, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Notes Receivable, Fair Value Disclosure | $ 2.6 |
Debt (Details) Narrative
Debt (Details) Narrative - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30 | $ 30 |
Line of credit facility, interest rate description | greater of 4.5%, or 1.25% plus the prime rate | |
Line of Credit Facility, Ancillary Services and Letter of Credit | $ 4.5 | 3 |
Restricted Cash and Cash Equivalents | 0.6 | $ 0.6 |
Line of Credit Facility, Remaining Borrowing Capacity | 21 | |
Line of Credit Facility, Ancillary Services and Letter of Credit | 1.5 | |
Long-term Line of Credit | 7.5 | |
Line of Credit Financing Fee | $ 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, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation, options, outstanding, number of shares | 4,118,884 | 4,123,023 |
Stock-based compensation, options, granted, number of options | 648,589 | |
Stock-based compensation, options, exercised | (581,865) | |
Stock-based compensation, options, forfeited | (70,863) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 2,975,063 | |
Stock-based compensation, options, outstanding, weighted-average exercise price | $ 7.13 | $ 5.06 |
Stock-based compensation, options, granted, weighted-average exercise price | 17.61 | |
Stock-based compensation, options, exercised, weighted-average exercise price | 3.58 | |
Stock-based compensation, options, forfeited, weighted-average exercise price | 11.56 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 4.23 | |
Stock-based compensation, options, outstanding, aggregate intrinsic value | $ 79,408 | $ 43,185 |
Stock-based compensation, options, exercised, aggregate intrinsic value | 8,134 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 65,994 |
Stock-based Compensation (Det35
Stock-based Compensation (Details) Expense Category - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 895 | $ 776 | $ 2,564 | $ 2,215 |
Claims expense | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 101 | 74 | 260 | 189 |
Other Cost of Revenue | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 69 | 9 | 172 | 26 |
Sales and marketing | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 165 | 172 | 550 | 419 |
Technology and development | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 57 | 67 | 166 | 158 |
General and administrative | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 503 | $ 454 | $ 1,416 | $ 1,423 |
Stock-based Compensation (Det36
Stock-based Compensation (Details) Narrative $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Remaining contractual life, share-based payments, weighted average | 5 years 8 months |
Employee share-based compensation arrangement by share-based payment award, options, nonvested, number of shares | 1,124,951 |
Restricted stock, outstanding | 234,758 |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ | $ 6.8 |
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period | 2 years 9 months |
Claims Reserve (Details) Claims
Claims Reserve (Details) Claims Loss Roll-forward - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subscription business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | $ 9,946 | $ 7,372 | $ 8,538 | $ 5,384 |
Current Year Claims Incurred | 113,833 | 90,188 | ||
Prior Year Claims Incurred | (85) | 521 | ||
Total Claims Incurred | 113,748 | 90,709 | ||
Current Year Claims Paid | 104,501 | 82,761 | ||
Prior Years Claims Paid | 7,533 | 5,681 | ||
Total Claims Paid | 112,034 | 88,442 | ||
Claims expense non-cash | 306 | 279 | ||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 9,946 | |||
Other business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | 1,309 | 990 | $ 983 | $ 890 |
Current Year Claims Incurred | 10,074 | 6,718 | ||
Prior Year Claims Incurred | (173) | (104) | ||
Total Claims Incurred | 9,901 | 6,614 | ||
Current Year Claims Paid | 8,786 | 5,765 | ||
Prior Years Claims Paid | 789 | 749 | ||
Total Claims Paid | 9,575 | 6,514 | ||
Claims expense non-cash | 0 | $ 0 | ||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 1,309 | |||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 192 | |||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 2 | |||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 727 | |||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 19 | |||
Short duration insurance contracts accident year 2017 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 9,027 | |||
Short duration insurance contracts accident year 2017 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | $ 1,288 |
Claims Reserve (Details) Narrat
Claims Reserve (Details) Narrative - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subscription business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) | $ 1,400 | |||
Claims Reserve | 9,946 | $ 7,372 | $ 8,538 | $ 5,384 |
Total Claims Incurred | 113,748 | 90,709 | ||
Total Claims Paid | 112,034 | 88,442 | ||
Prior Year Claims Incurred | (85) | 521 | ||
Other business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) | 300 | |||
Claims Reserve | 1,309 | 990 | $ 983 | $ 890 |
Total Claims Incurred | 9,901 | 6,614 | ||
Total Claims Paid | 9,575 | 6,514 | ||
Prior Year Claims Incurred | $ (173) | $ (104) |
Equity Method Investment (Detai
Equity Method Investment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 1 |
Segments (Details) Business Seg
Segments (Details) Business Segment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 63,118 | $ 48,359 | $ 176,122 | $ 136,890 |
Claims expenses | 43,453 | 34,253 | 123,649 | 97,323 |
Other cost of revenue | 7,858 | 5,606 | 21,160 | 15,497 |
Gross profit | 11,807 | 8,500 | 31,313 | 24,070 |
Sales and marketing | 4,862 | 3,892 | 13,323 | 11,296 |
Technology and Development | 2,471 | 2,339 | 7,196 | 6,790 |
General and administrative | 4,017 | 3,811 | 12,274 | 11,028 |
Operating income (loss) | 457 | (1,542) | (1,480) | (5,044) |
Subscription business | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 56,493 | 44,629 | 159,363 | 125,934 |
Claims expenses | 39,761 | 32,088 | 113,748 | 90,709 |
Other cost of revenue | 5,454 | 4,344 | 15,304 | 12,084 |
Gross profit | 11,278 | 8,197 | 30,311 | 23,141 |
Sales and marketing | 4,811 | 3,829 | 13,161 | 11,140 |
Other business | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 6,625 | 3,730 | 16,759 | 10,956 |
Claims expenses | 3,692 | 2,165 | 9,901 | 6,614 |
Other cost of revenue | 2,404 | 1,262 | 5,856 | 3,413 |
Gross profit | 529 | 303 | 1,002 | 929 |
Sales and marketing | $ 51 | $ 63 | $ 162 | $ 156 |
Segments (Details) Revenue by G
Segments (Details) Revenue by Geography - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 63,118 | $ 48,359 | $ 176,122 | $ 136,890 |
CANADA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,612 | 9,560 | 34,176 | 26,866 |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 50,506 | $ 38,799 | $ 141,946 | $ 110,024 |