Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 25, 2018 | |
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 | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 31,186,900 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 69,760 | $ 54,729 |
Cost of Revenue [Abstract] | ||
Veterinary invoice expense | 50,113 | 39,187 |
Other cost of revenue | 8,583 | 6,387 |
Gross profit | 11,064 | 9,155 |
Operating Expenses [Abstract] | ||
Technology and Development | 2,164 | 2,403 |
General and administrative | 4,458 | 4,012 |
Sales and marketing | 5,938 | 4,089 |
Total operating expenses | 12,560 | 10,504 |
Operating loss | (1,496) | (1,349) |
Interest expense | 219 | 137 |
Other (income) expense, net | (140) | (28) |
Income (Loss) before income taxes | (1,575) | (1,458) |
Income tax (benefit) expense | (95) | 24 |
Net loss | $ (1,480) | $ (1,482) |
Net income (loss) per share [Abstract] | ||
Earnings Per Share, Basic and Diluted | $ (0.05) | $ (0.05) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 30,246,585 | 29,254,681 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (1,480) | $ (1,482) |
Foreign currency translation adjustments | (190) | 12 |
Net unrealized (loss) on available-for-sale debt securities | (15) | (7) |
Other comprehensive (loss) income, net of taxes | (205) | 5 |
Comprehensive Income (Loss) | $ (1,685) | $ (1,477) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 30,786 | $ 25,706 |
Short-term Investments | 39,360 | 37,590 |
Accounts and other receivables | 24,317 | 20,367 |
Prepaid expenses and other assets | 3,046 | 2,895 |
Total current assets | 97,509 | 86,558 |
Restricted Cash | 600 | 600 |
Long-Term Investments, at fair value | 3,238 | 3,237 |
Property and equipment, net | 8,275 | 7,868 |
Intangible assets, net | 5,000 | 4,972 |
Other Long-Term Assets | 2,596 | 2,624 |
Total assets | 117,218 | 105,859 |
Liabilities and Equity [Abstract] | ||
Accounts payable | 3,343 | 2,716 |
Accrued liabilities and other current liabilities | 8,347 | 7,660 |
Reserve for veterinary invoices | 13,450 | 12,756 |
Deferred Revenue | 26,757 | 22,734 |
Total current liabilities | 51,897 | 45,866 |
Long-term debt | 14,851 | 9,324 |
Deferred tax liabilities | 1,002 | 1,002 |
Other liabilities | 1,221 | 1,233 |
Total liabilities | 68,971 | 57,425 |
Common stock | 0 | 0 |
Preferred Stock | 0 | 0 |
Additional paid-in capital | 139,009 | 134,511 |
Accumulated other comprehensive loss | (297) | (92) |
Accumulated deficit | (84,264) | (82,784) |
Treasury stock, at cost | (6,201) | (3,201) |
Stockholders' Equity Attributable to Parent | 48,247 | 48,434 |
Total liabilities and stockholders' equity | $ 117,218 | $ 105,859 |
Consolidated Balance Sheet Cond
Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 31,181,627 | 30,778,796 |
Common Stock, Shares, Outstanding | 30,430,915 | 30,121,496 |
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 | 755,985 | 657,300 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Cash Provided by Operating Activities [Abstract] | ||
Net loss | $ (1,480) | $ (1,482) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and Amortization | 927 | 1,036 |
Stock-based compensation expense | 968 | 781 |
Other, Net | 23 | 97 |
Increase (Decrease) in Operating Assets [Abstract] | ||
Accounts and other receivables | (3,926) | (3,372) |
Prepaid expenses and other assets | (129) | (219) |
Accounts Payable, Accrued Liabilities, and Other Liabilities | 910 | (295) |
Claims Reserve | 743 | 1,093 |
Deferred revenue | 4,041 | 4,218 |
Net cash provided by operating activities | 2,077 | 1,857 |
Payments to Acquire Investments | 7,140 | 5,172 |
Net Cash Provided by Investing Activities [Abstract] | ||
Maturities of Investment Securities | 5,300 | 3,871 |
Purchases of property and equipment | (992) | (462) |
Other Investments | 0 | (2,710) |
Net cash used in investing activities | (2,832) | (4,473) |
Net Cash Provided by Financing Activities [Abstract] | ||
Proceeds from exercise of stock options | 481 | 1,037 |
Proceeds from Debt financing, net of financing fees | 5,500 | 0 |
Proceeds from (Payments for) Other Financing Activities | (216) | (142) |
Net cash provided by financing activities | 5,765 | 895 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | 70 | 21 |
Net Increase in Cash, Cash Equivalents, and Restricted Cash | 5,080 | (1,700) |
Cash, Cash Equivalents, and Restricted Cash at beginning of period | 26,306 | 24,237 |
Cash, Cash Equivalents, and Restricted Cash, End of Period | 31,386 | 22,537 |
Supplemental Cash Flow Information [Abstract] | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | 680 | 93 |
Property and Equipment Acquired Under Capital Leases | 0 | 45 |
Redemption of Warrants Non-Cash; Common Stock | $ 3,000 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 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 (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 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 (SEC) on February 13, 2018 (the 2017 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2017 10-K. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim 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 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 2017 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 months ended March 31, 2018 and 2017 . Income Taxes On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act), making broad and complex changes to the Internal Revenue Code. The Company has made significant judgments and estimates in accordance with its interpretation of the Tax Act. As additional guidance on the Tax Act becomes available, the Company may adjust its interpretation of the requirements, which may result in a material change to income tax benefit or expense in the period in which the adjustment is made. Recent Accounting Pronouncements |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Earnings Per Share [Text Block] | Net Loss per Share Basic net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net 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 awards and restricted stock units, and warrants. 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 March 31, 2018 2017 Stock options 3,878,716 3,983,098 Restricted stock awards and restricted stock units 546,638 351,702 Warrants 510,000 810,000 |
Investment Securities (Notes)
Investment Securities (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investment [Text Block] | Investment Securities The amortized cost, gross unrealized holding gains and losses, fair value of long-term investments, which are classified as available-for-sale, and fair value of short-term investments by major security type and class of security were as follows as of March 31, 2018 and December 31, 2017 (in thousands): Amortized Gross Gross Fair As of March 31, 2018 Available-for-sale: Foreign deposits $ 2,253 $ — $ — $ 2,253 Municipal bond 1,000 — (15 ) 985 $ 3,253 $ — $ (15 ) $ 3,238 Short-term investments: U.S. Treasury securities $ 5,784 $ — $ (2 ) $ 5,782 Certificates of deposit 690 — — 690 U.S. government funds 32,886 — — 32,886 $ 39,360 $ — $ (2 ) $ 39,358 Amortized Gross Gross Fair As of December 31, 2017 Available-for-sale: Foreign deposits $ 2,237 $ — $ — $ 2,237 Municipal bond 1,000 — — 1,000 $ 3,237 $ — $ — $ 3,237 Short-term investments: U.S. Treasury securities $ 5,783 $ — $ (4 ) $ 5,779 Certificates of deposit 690 1 — 691 U.S. government funds 31,117 — — 31,117 $ 37,590 $ 1 $ (4 ) $ 37,587 Maturities of debt securities classified as available-for-sale were as follows (in thousands): March 31, 2018 Amortized Fair Available-for-sale: Due after one year through five years $ 2,253 $ 2,253 Due after five years through ten years 1,000 985 $ 3,253 $ 3,238 |
Investments [Text Block] | The amortized cost, gross unrealized holding gains and losses, fair value of long-term investments, which are classified as available-for-sale, and fair value of short-term investments by major security type and class of security were as follows as of March 31, 2018 and December 31, 2017 (in thousands): Amortized Gross Gross Fair As of March 31, 2018 Available-for-sale: Foreign deposits $ 2,253 $ — $ — $ 2,253 Municipal bond 1,000 — (15 ) 985 $ 3,253 $ — $ (15 ) $ 3,238 Short-term investments: U.S. Treasury securities $ 5,784 $ — $ (2 ) $ 5,782 Certificates of deposit 690 — — 690 U.S. government funds 32,886 — — 32,886 $ 39,360 $ — $ (2 ) $ 39,358 Amortized Gross Gross Fair As of December 31, 2017 Available-for-sale: Foreign deposits $ 2,237 $ — $ — $ 2,237 Municipal bond 1,000 — — 1,000 $ 3,237 $ — $ — $ 3,237 Short-term investments: U.S. Treasury securities $ 5,783 $ — $ (4 ) $ 5,779 Certificates of deposit 690 1 — 691 U.S. government funds 31,117 — — 31,117 $ 37,590 $ 1 $ (4 ) $ 37,587 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Investments 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 March 31, 2018 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 2,253 2,253 — Municipal bond 985 — 985 Money market funds 7,717 7,717 — Total $ 11,555 $ 10,570 $ 985 As of December 31, 2017 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 2,237 2,237 — Municipal bond 1,000 — 1,000 Money market funds 5,167 5,167 — Total $ 9,004 $ 8,004 $ 1,000 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. Fair Value Disclosures As of March 31, 2018 and December 31, 2017, the Company's other long-term assets balance included a $2.5 million note receivable, recorded at its estimated collectible amount. 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 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 March 31, 2018 and December 31, 2017 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt The Company has a revolving line of credit of up to $30.0 million , maturing December 2019. The facility is 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 ( 6.00% at March 31, 2018 ). The credit agreement includes other ancillary services and letters of credit of up to $4.5 million , and requires a deposit of restricted cash of $0.6 million . As of March 31, 2018 , the Company was in compliance with all financial and non-financial covenants required by the credit agreement. 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 March 31, 2018 , available borrowing capacity on the line of credit was $13.0 million , with an outstanding balance of $2.0 million for ancillary services and letters of credit, and borrowings under the facility were $15.0 million , recorded net of financing fees of $0.1 million |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and ContingenciesFrom 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. |
Claims Reserve
Claims Reserve | 3 Months Ended |
Mar. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | Reserve for Veterinary Invoices The reserve for veterinary invoices is an estimate of the future amount the Company will pay for veterinary invoices that are dated as of, or prior to, its balance sheet date. The reserve also includes the Company's estimate of related internal processing costs. The reserve estimate involves actuarial projections, and is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated patterns, including expected future trends in the number of veterinary invoices the Company will receive and the average cost of those veterinary invoices. The reserve is made for each of the Company's segments, subscription and other business, and are continually refined as the Company receives and pays veterinary invoices. Changes in management's assumptions and estimates may have a relatively large impact to the reserve and associated expense. Reserve for veterinary invoices Summarized below are the changes in the total liability for the Company's subscription business segment (in thousands): Three Months Ended March 31, Subscription 2018 2017 Reserve at beginning of year $ 11,059 $ 8,538 Veterinary invoices during the period related to: Current year 45,198 36,518 Prior years (61 ) (195 ) Total veterinary invoice expense 45,137 36,323 Amounts paid during the period related to: Current year 36,142 28,868 Prior years 8,250 6,400 Total paid 44,392 35,268 Non-cash expenses 156 93 Reserve at end of period $ 11,648 $ 9,500 The Company's reserve for the subscription business segment increased from $11.1 million at December 31, 2017 to $11.6 million at March 31, 2018 . This change was comprised of $45.1 million in expense recorded during the period less $44.4 million in payments of veterinary invoices. The $45.1 million in veterinary invoice 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 payment trends. For the three months ended March 31, 2017 , the Company decreased prior year reserves by $0.2 million as a result of analysis of payment trends. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Three Months Ended March 31, Other Business 2018 2017 Reserve at beginning of year $ 1,697 $ 983 Veterinary invoices during the period related to: Current year 5,218 3,048 Prior years (242 ) (184 ) Total veterinary invoice expense 4,976 2,864 Amounts paid during the period related to: Current year 3,734 2,092 Prior years 1,137 634 Total paid 4,871 2,726 Non-cash expenses — — Reserve at end of period $ 1,802 $ 1,121 The Company’s reserve for the other business segment increased from $1.7 million at December 31, 2017 to $1.8 million at March 31, 2018 . This change was comprised of $5.0 million in expense recorded during the period less $4.9 million in payments of veterinary invoices. The $5.0 million in veterinary invoice 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 payment trends. For the three months ended March 31, 2017 , the Company decreased prior year reserves by $0.2 million as a result of analysis of payment trends. Reserve for veterinary invoices, by year of occurrence In the following tables, the reserve for veterinary invoices for each segment is presented as the amount (in thousands) by year the veterinary invoice relates to, referred to as the year of occurrence. Subscription As of March 31, 2018 Year of Occurrence 2016 $ 453 2017 2,295 2018 8,900 $ 11,648 Other Business As of March 31, 2018 Year of Occurrence 2017 317 2018 1,485 $ 1,802 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation and Stockholders' Equity Stock-based Compensation Stock-based compensation expense includes stock options, restricted stock awards, and restricted stock units granted to employees and non-employees and has been reported in the Company’s consolidated statements of operations depending on the function performed by the employee or non-employee. Stock-based compensation expense recognized in the consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2018 2017 Veterinary invoice expense $ 120 $ 70 Other cost of revenue 77 43 Technology and development 49 50 General and administrative 449 431 Sales and marketing 273 187 Total stock-based compensation $ 968 $ 781 As of March 31, 2018 , for all employees, the Company had 896,125 unvested stock options and 546,683 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expense of $5.0 million related to unvested stock options and $8.8 million related to unvested restricted stock awards and restricted stock units, each expected to be recognized over a weighted-average period of approximately 2.5 years. Stock Options A summary of the Company's stock option activity is as follows: Number Of Options Weighted-Average Exercise Price per Share Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 4,006,399 $ 7.16 $ 88,578 Granted — — Exercised (101,514 ) 4.74 2,605 Forfeited (26,169 ) 15.75 Outstanding as of March 31, 2018 3,878,716 7.17 88,138 Exercisable as of March 31, 2018 2,977,257 $ 4.67 $ 75,089 As of March 31, 2018 , stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 5.1 years and 4.1 years, respectively. Restricted Stock Awards and Restricted Stock Units A summary of the Company’s restricted stock award and restricted stock unit activity is as follows: Number of Weighted Average Unvested shares as of December 31, 2017 256,842 4.77 Granted 296,749 27.99 Vested (6,590 ) 27.04 Forfeited (318 ) 28.01 Unvested shares as of March 31, 2018 546,683 18.16 Stockholders’ Equity In February 2018, 300,000 of the Company's outstanding warrants were exercised. As of March 31, 2018, warrants to purchase 510,000 shares of the Company's common stock at $10.00 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2018 | |
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 subscription fees related to the Company’s medical insurance which is 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 March 31, 2018 2017 Revenue: Subscription business $ 61,517 $ 50,229 Other business 8,243 4,500 69,760 54,729 Veterinary invoice expense: Subscription business 45,137 36,323 Other business 4,976 2,864 50,113 39,187 Other cost of revenue: Subscription business 5,877 4,923 Other business 2,706 1,464 8,583 6,387 Gross profit: Subscription business 10,503 8,983 Other business 561 172 11,064 9,155 Technology and development 2,164 2,403 General and administrative 4,458 4,012 Sales and marketing: Subscription business 5,851 4,041 Other business 87 48 5,938 4,089 Operating loss $ (1,496 ) $ (1,349 ) The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended March 31, 2018 2017 United States $ 56,009 $ 44,134 Canada 13,751 10,595 Total revenue $ 69,760 $ 54,729 Substantially all of the Company’s long-lived assets were located in the United States as of March 31, 2018 and December 31, 2017 |
Nature of Operations and Summ16
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. The financial data as of December 31, 2017 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 (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 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 (SEC) on February 13, 2018 (the 2017 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2017 10-K. Operating results for the three months ended March 31, 2018 |
Basis of Accounting, Policy [Policy Text Block] | The financial data as of December 31, 2017 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 (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 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 (SEC) on February 13, 2018 (the 2017 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2017 10-K. Operating results for the three months ended March 31, 2018 |
Use of Estimates [Policy Text Block] | Use of EstimatesThe 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 2017 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 months ended March 31, 2018 and 2017 |
Income Tax, Policy [Policy Text Block] | Income TaxesOn December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act), making broad and complex changes to the Internal Revenue Code. The Company has made significant judgments and estimates in accordance with its interpretation of the Tax Act. As additional guidance on the Tax Act becomes available, the Company may adjust its interpretation of the requirements, which may result in a material change to income tax benefit or expense in the period in which the adjustment is made. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting PronouncementsIn February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (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 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. The Company plans to adopt this guidance as of January 1, 2019, and is in the process of evaluating the impact on its consolidated financial statements. |
Fair Value Notes Receivable (Po
Fair Value Notes Receivable (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | As of March 31, 2018 and December 31, 2017, the Company's other long-term assets balance included a $2.5 million note receivable, recorded at its estimated collectible amount. 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 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 March 31, 2018 and December 31, 2017 |
Fair Value Fair Value (Policies
Fair Value Fair Value (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | 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 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.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. |
Claims Reserve Claims Reserve (
Claims Reserve Claims Reserve (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Liability Reserve Estimate, Policy [Policy Text Block] | Reserve for Veterinary InvoicesThe reserve for veterinary invoices is an estimate of the future amount the Company will pay for veterinary invoices that are dated as of, or prior to, its balance sheet date. The reserve also includes the Company's estimate of related internal processing costs. The reserve estimate involves actuarial projections, and is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated patterns, including expected future trends in the number of veterinary invoices the Company will receive and the average cost of those veterinary invoices. The reserve is made for each of the Company's segments, subscription and other business, and are continually refined as the Company receives and pays veterinary invoices. Changes in management's assumptions and estimates may have a relatively large impact to the reserve and associated expense. |
Segments Segments (Policies)
Segments Segments (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | 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. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share, Basic and Diluted [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 earnings per common share calculation because they would have had an antidilutive effect: Three Months Ended March 31, 2018 2017 Stock options 3,878,716 3,983,098 Restricted stock awards and restricted stock units 546,638 351,702 Warrants 510,000 810,000 |
Investment Securities Available
Investment Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investment [Table Text Block] | The amortized cost, gross unrealized holding gains and losses, fair value of long-term investments, which are classified as available-for-sale, and fair value of short-term investments by major security type and class of security were as follows as of March 31, 2018 and December 31, 2017 (in thousands): Amortized Gross Gross Fair As of March 31, 2018 Available-for-sale: Foreign deposits $ 2,253 $ — $ — $ 2,253 Municipal bond 1,000 — (15 ) 985 $ 3,253 $ — $ (15 ) $ 3,238 Short-term investments: U.S. Treasury securities $ 5,784 $ — $ (2 ) $ 5,782 Certificates of deposit 690 — — 690 U.S. government funds 32,886 — — 32,886 $ 39,360 $ — $ (2 ) $ 39,358 Amortized Gross Gross Fair As of December 31, 2017 Available-for-sale: Foreign deposits $ 2,237 $ — $ — $ 2,237 Municipal bond 1,000 — — 1,000 $ 3,237 $ — $ — $ 3,237 Short-term investments: U.S. Treasury securities $ 5,783 $ — $ (4 ) $ 5,779 Certificates of deposit 690 1 — 691 U.S. government funds 31,117 — — 31,117 $ 37,590 $ 1 $ (4 ) $ 37,587 |
Available-for-sale Securities [Table Text Block] | Maturities of debt securities classified as available-for-sale were as follows (in thousands): March 31, 2018 Amortized Fair Available-for-sale: Due after one year through five years $ 2,253 $ 2,253 Due after five years through ten years 1,000 985 $ 3,253 $ 3,238 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 2,253 2,253 — Municipal bond 985 — 985 Money market funds 7,717 7,717 — Total $ 11,555 $ 10,570 $ 985 As of December 31, 2017 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 2,237 2,237 — Municipal bond 1,000 — 1,000 Money market funds 5,167 5,167 — Total $ 9,004 $ 8,004 $ 1,000 |
Claims Reserve (Tables)
Claims Reserve (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 (in thousands): Three Months Ended March 31, Subscription 2018 2017 Reserve at beginning of year $ 11,059 $ 8,538 Veterinary invoices during the period related to: Current year 45,198 36,518 Prior years (61 ) (195 ) Total veterinary invoice expense 45,137 36,323 Amounts paid during the period related to: Current year 36,142 28,868 Prior years 8,250 6,400 Total paid 44,392 35,268 Non-cash expenses 156 93 Reserve at end of period $ 11,648 $ 9,500 The Company's reserve for the subscription business segment increased from $11.1 million at December 31, 2017 to $11.6 million at March 31, 2018 . This change was comprised of $45.1 million in expense recorded during the period less $44.4 million in payments of veterinary invoices. The $45.1 million in veterinary invoice 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 payment trends. For the three months ended March 31, 2017 , the Company decreased prior year reserves by $0.2 million as a result of analysis of payment trends. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Three Months Ended March 31, Other Business 2018 2017 Reserve at beginning of year $ 1,697 $ 983 Veterinary invoices during the period related to: Current year 5,218 3,048 Prior years (242 ) (184 ) Total veterinary invoice expense 4,976 2,864 Amounts paid during the period related to: Current year 3,734 2,092 Prior years 1,137 634 Total paid 4,871 2,726 Non-cash expenses — — Reserve at end of period $ 1,802 $ 1,121 The Company’s reserve for the other business segment increased from $1.7 million at December 31, 2017 to $1.8 million at March 31, 2018 . This change was comprised of $5.0 million in expense recorded during the period less $4.9 million in payments of veterinary invoices. The $5.0 million in veterinary invoice 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 payment trends. For the three months ended March 31, 2017 , the Company decreased prior year reserves by $0.2 million |
IBRN plus expected development on reported claims[Table Text Block] | In the following tables, the reserve for veterinary invoices for each segment is presented as the amount (in thousands) by year the veterinary invoice relates to, referred to as the year of occurrence. Subscription As of March 31, 2018 Year of Occurrence 2016 $ 453 2017 2,295 2018 8,900 $ 11,648 Other Business As of March 31, 2018 Year of Occurrence 2017 317 2018 1,485 $ 1,802 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Stock-based compensation expense includes stock options, restricted stock awards, and restricted stock units granted to employees and non-employees and has been reported in the Company’s consolidated statements of operations depending on the function performed by the employee or non-employee. Stock-based compensation expense recognized in the consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2018 2017 Veterinary invoice expense $ 120 $ 70 Other cost of revenue 77 43 Technology and development 49 50 General and administrative 449 431 Sales and marketing 273 187 Total stock-based compensation $ 968 $ 781 As of March 31, 2018 , for all employees, the Company had 896,125 unvested stock options and 546,683 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expense of $5.0 million related to unvested stock options and $8.8 million related to unvested restricted stock awards and restricted stock units, each expected to be recognized over a weighted-average period of approximately 2.5 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the Company's stock option activity is as follows: Number Of Options Weighted-Average Exercise Price per Share Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2017 4,006,399 $ 7.16 $ 88,578 Granted — — Exercised (101,514 ) 4.74 2,605 Forfeited (26,169 ) 15.75 Outstanding as of March 31, 2018 3,878,716 7.17 88,138 Exercisable as of March 31, 2018 2,977,257 $ 4.67 $ 75,089 As of March 31, 2018 , stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 5.1 years and 4.1 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of the Company’s restricted stock award and restricted stock unit activity is as follows: Number of Weighted Average Unvested shares as of December 31, 2017 256,842 4.77 Granted 296,749 27.99 Vested (6,590 ) 27.04 Forfeited (318 ) 28.01 Unvested shares as of March 31, 2018 546,683 18.16 |
Stock-based Compensation Stockh
Stock-based Compensation Stockholder's Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Class of Warrant or Right [Line Items] | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | In February 2018, 300,000 of the Company's outstanding warrants were exercised. As of March 31, 2018, warrants to purchase 510,000 shares of the Company's common stock at $10.00 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenue and Gross Profit from Segments [Table Text Block] | Revenue and gross profit of the Company’s segments were as follows (in thousands): Three Months Ended March 31, 2018 2017 Revenue: Subscription business $ 61,517 $ 50,229 Other business 8,243 4,500 69,760 54,729 Veterinary invoice expense: Subscription business 45,137 36,323 Other business 4,976 2,864 50,113 39,187 Other cost of revenue: Subscription business 5,877 4,923 Other business 2,706 1,464 8,583 6,387 Gross profit: Subscription business 10,503 8,983 Other business 561 172 11,064 9,155 Technology and development 2,164 2,403 General and administrative 4,458 4,012 Sales and marketing: Subscription business 5,851 4,041 Other business 87 48 5,938 4,089 Operating loss $ (1,496 ) $ (1,349 ) |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended March 31, 2018 2017 United States $ 56,009 $ 44,134 Canada 13,751 10,595 Total revenue $ 69,760 $ 54,729 |
Nature of Operations and Summ28
Nature of Operations and Summary of Significant Accounting Policies (Details) Narrative - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 3,878,716 | 3,983,098 |
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 | 546,638 | 351,702 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 510,000 | 810,000 |
Investment Securities (Details)
Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Available-for-sale Securities, Gross Unrealized Gain | $ 0 | $ 0 |
Available-for-sale Securities, Gross Unrealized Loss | (15) | 0 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 3,253 | 3,237 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 3,238 | 3,237 |
Short-term investments, amortized cost | 39,360 | 37,590 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 1 |
Short-term investments, gross unrealized holding losses | (2) | (4) |
Short-term Investments, fair value | 39,358 | 37,587 |
Deposits [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 2,253 | 2,237 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 2,253 | 2,237 |
Municipal Bonds [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 1,000 | 1,000 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | (15) | 0 |
Available-for-sale Securities, Debt Maturities, Single Maturity Date | 985 | 1,000 |
U.S. Treasury securities | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 5,784 | 5,783 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | (2) | (4) |
Short-term Investments, fair value | 5,782 | 5,779 |
Certificates of deposit | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 690 | 690 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 1 |
Short-term investments, gross unrealized holding losses | 0 | 0 |
Short-term Investments, fair value | 690 | 691 |
US government debt securities | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 32,886 | 31,117 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | 0 | 0 |
Short-term Investments, fair value | $ 32,886 | $ 31,117 |
Investment Securities (Detail31
Investment Securities (Details) Available-for-Sale - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities [Abstract] | ||
Available-for-sale securities, debt maturities, year two through five, amortized cost basis | $ 2,253 | |
Available-for-sale securities, debt maturities, year two through five, fair value | 2,253 | |
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 | 985 | |
Available-for-sale securities, amortized cost | 3,253 | $ 3,237 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | $ 3,238 | $ 3,237 |
Fair Value (Details) Unobservab
Fair Value (Details) Unobservable - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | $ 600,000 | $ 600,000 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 3,238,000 | 3,237,000 |
Assets, Fair Value Disclosure | 11,555,000 | 9,004,000 |
Notes Receivable, Fair Value Disclosure | 2,500,000 | 2,500,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 10,570,000 | 8,004,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 985,000 | 1,000,000 |
Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 600,000 | 600,000 |
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 | 600,000 | 600,000 |
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] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 2,253,000 | 2,237,000 |
Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 2,253,000 | 2,237,000 |
Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 0 | 0 |
Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date | 985,000 | 1,000,000 |
Municipal bond | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date | 0 | 0 |
Municipal bond | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Single Maturity Date | 985,000 | 1,000,000 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 7,717,000 | 5,167,000 |
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 | 7,717,000 | 5,167,000 |
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 |
Debt (Details) Narrative
Debt (Details) Narrative $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Debt Disclosure [Abstract] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 30 |
Line of credit facility, interest rate description | greater of 4.5%, or 1.25% plus the prime rate |
Line of Credit Facility, Interest Rate During Period | 6.00% |
Line of Credit Facility, Ancillary Services and Letter of Credit | $ 4.5 |
Restricted Cash and Cash Equivalents | 0.6 |
Line of Credit Facility, Remaining Borrowing Capacity | 13 |
Line of Credit Facility, Ancillary Services and Letter of Credit | 2 |
Long-term Line of Credit | 15 |
Line of Credit Financing Fee | $ 0.1 |
Claims Reserve (Details) Claims
Claims Reserve (Details) Claims Loss Roll-forward - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subscription business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | $ 11,648 | $ 9,500 | $ 11,059 | $ 8,538 |
Current Year Claims Incurred | 45,198 | 36,518 | ||
Prior Year Claims Incurred | (61) | (195) | ||
Total Claims Incurred | 45,137 | 36,323 | ||
Current Year Claims Paid | 36,142 | 28,868 | ||
Prior Years Claims Paid | 8,250 | 6,400 | ||
Total Claims Paid | 44,392 | 35,268 | ||
Claims expense non-cash | 156 | 93 | ||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 11,648 | |||
Other business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | 1,802 | 1,121 | $ 1,697 | $ 983 |
Current Year Claims Incurred | 5,218 | 3,048 | ||
Prior Year Claims Incurred | (242) | (184) | ||
Total Claims Incurred | 4,976 | 2,864 | ||
Current Year Claims Paid | 3,734 | 2,092 | ||
Prior Years Claims Paid | 1,137 | 634 | ||
Total Claims Paid | 4,871 | 2,726 | ||
Claims expense non-cash | 0 | $ 0 | ||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 1,802 | |||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 453 | |||
Short duration insurance contracts accident year 2017 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 2,295 | |||
Short duration insurance contracts accident year 2017 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 317 | |||
Shortduration insurance contracts for accident year 2018 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 8,900 | |||
Shortduration insurance contracts for accident year 2018 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | $ 1,485 |
Claims Reserve (Details) Narrat
Claims Reserve (Details) Narrative - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subscription business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | $ 11,648 | $ 9,500 | $ 11,059 | $ 8,538 |
Total Claims Incurred | 45,137 | 36,323 | ||
Total Claims Paid | 44,392 | 35,268 | ||
Prior Year Claims Incurred | (61) | (195) | ||
Other business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | 1,802 | 1,121 | $ 1,697 | $ 983 |
Total Claims Incurred | 4,976 | 2,864 | ||
Total Claims Paid | 4,871 | 2,726 | ||
Prior Year Claims Incurred | $ (242) | $ (184) |
Claims Reserve Claims Reserve36
Claims Reserve Claims Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subscription business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Claims Reserve | $ 11,648 | $ 9,500 | $ 11,059 | $ 8,538 |
Current Year Claims Incurred | 45,198 | 36,518 | ||
Prior Year Claims Incurred | (61) | (195) | ||
Current Year Claims Paid | 36,142 | 28,868 | ||
Prior Years Claims Paid | 8,250 | 6,400 | ||
Total Claims Paid | 44,392 | 35,268 | ||
Claims expense non-cash | 156 | 93 | ||
Total Claims Incurred | 45,137 | 36,323 | ||
Other business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Claims Reserve | 1,802 | 1,121 | $ 1,697 | $ 983 |
Current Year Claims Incurred | 5,218 | 3,048 | ||
Prior Year Claims Incurred | (242) | (184) | ||
Current Year Claims Paid | 3,734 | 2,092 | ||
Prior Years Claims Paid | 1,137 | 634 | ||
Total Claims Paid | 4,871 | 2,726 | ||
Claims expense non-cash | 0 | 0 | ||
Total Claims Incurred | $ 4,976 | $ 2,864 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) Expense Category - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 968 | $ 781 |
Claims expense | ||
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 120 | 70 |
Other Cost of Revenue | ||
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 77 | 43 |
Technology and development | ||
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 49 | 50 |
General and administrative | ||
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 449 | 431 |
Sales and marketing | ||
Stock-based Compensation | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 273 | $ 187 |
Restricted Stock Units (RSUs) [Member] | ||
Stock-based Compensation | ||
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period | 2 years 6 months | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 8,800 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 546,683 | |
Employee Stock Option [Member] | ||
Stock-based Compensation | ||
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period | 2 years 6 months | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 5,000 | |
Employee share-based compensation arrangement by share-based payment award, options, nonvested, number of shares | 896,125 |
Stock-based Compensation (Det38
Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation, options, outstanding, number of shares | 3,878,716 | 4,006,399 |
Stock-based compensation, options, granted, number of options | 0 | |
Stock-based compensation, options, exercised | (101,514) | |
Stock-based compensation, options, forfeited | (26,169) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 2,977,257 | |
Stock-based compensation, options, outstanding, weighted-average exercise price | $ 7.17 | $ 7.16 |
Stock-based compensation, options, granted, weighted-average exercise price | 0 | |
Stock-based compensation, options, exercised, weighted-average exercise price | 4.74 | |
Stock-based compensation, options, forfeited, weighted-average exercise price | 15.75 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 4.67 | |
Stock-based compensation, options, outstanding, aggregate intrinsic value | $ 88,138 | $ 88,578 |
Stock-based compensation, options, exercised, aggregate intrinsic value | 2,605 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 75,089 | |
Remaining contractual life, share-based payments, weighted average | 5 years 1 month 6 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 1 month 6 days |
Stock-based Compensation Restri
Stock-based Compensation Restricted Stock Awards (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 546,683 | 256,842 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 296,749 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (318) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (6,590) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 18.16 | $ 4.77 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 27.99 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 28.01 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 27.04 |
Stock-based Compensation Stoc40
Stock-based Compensation Stockholder Equity (Details) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Redemption of warrants | 300,000 |
Class of Warrant or Right, Outstanding | 510,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 10 |
Segments (Details) Business Seg
Segments (Details) Business Segment - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 69,760 | $ 54,729 |
Veterinary invoice expense | 50,113 | 39,187 |
Other cost of revenue | 8,583 | 6,387 |
Gross profit | 11,064 | 9,155 |
Sales and marketing | 5,938 | 4,089 |
Technology and Development | 2,164 | 2,403 |
General and administrative | 4,458 | 4,012 |
Operating loss | (1,496) | (1,349) |
Subscription business | ||
Segment Reporting Information [Line Items] | ||
Revenue | 61,517 | 50,229 |
Veterinary invoice expense | 45,137 | 36,323 |
Other cost of revenue | 5,877 | 4,923 |
Gross profit | 10,503 | 8,983 |
Sales and marketing | 5,851 | 4,041 |
Other business | ||
Segment Reporting Information [Line Items] | ||
Revenue | 8,243 | 4,500 |
Veterinary invoice expense | 4,976 | 2,864 |
Other cost of revenue | 2,706 | 1,464 |
Gross profit | 561 | 172 |
Sales and marketing | $ 87 | $ 48 |
Segments (Details) Revenue by G
Segments (Details) Revenue by Geography - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 69,760 | $ 54,729 |
CANADA | ||
Segment Reporting Information [Line Items] | ||
Revenues | 13,751 | 10,595 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 56,009 | $ 44,134 |