Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 07, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | TRUPANION, INC. | ||
Entity Central Index Key | 1,371,285 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 34,332,607 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,190,862,535 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 303,956 | $ 242,667 | $ 188,230 |
Veterinary invoice expense | 214,539 | 170,122 | 133,534 |
Other cost of revenue | 38,051 | 29,495 | 21,408 |
Gross profit | 51,366 | 43,050 | 33,288 |
Technology Services Costs | 9,248 | 9,768 | 9,534 |
General and administrative | 18,164 | 16,820 | 15,205 |
Sales and marketing | 24,999 | 19,104 | 15,247 |
Total operating expenses | 52,411 | 45,692 | 39,986 |
Operating loss | (1,045) | (2,642) | (6,698) |
Interest expense | 1,198 | 533 | 218 |
Other income, net | (1,309) | (1,244) | (58) |
Loss before income taxes | (934) | (1,931) | (6,858) |
Income tax (benefit) expense | (7) | (428) | 38 |
Net loss | $ (927) | $ (1,503) | $ (6,896) |
Earnings Per Share, Basic and Diluted | $ (0.03) | $ (0.05) | $ (0.24) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 31,961,192 | 29,588,324 | 28,527,602 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net loss | $ (927) | $ (1,503) | $ (6,896) |
Foreign currency translation adjustments | (642) | 277 | 79 |
Net unrealized gain (loss) on available-for-sale debt securities | (19) | 8 | 46 |
Other comprehensive income (loss), net of taxes | (661) | 285 | 125 |
Comprehensive loss | $ (1,588) | $ (1,218) | $ (6,771) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 26,552 | $ 25,706 |
Short-term Investments | 54,559 | 37,590 |
Accounts and other receivables | 31,565 | 20,367 |
Prepaid expenses and other assets | 5,300 | 2,895 |
Total current assets | 117,976 | 86,558 |
Restricted Cash and Cash Equivalents | 1,400 | 600 |
Investments in fixed maturities, at fair value | 3,554 | 3,237 |
Property and equipment, net | 69,803 | 7,868 |
Intangible assets, net | 8,071 | 4,972 |
Other Assets, Noncurrent | 6,706 | 2,624 |
Total assets | 207,510 | 105,859 |
Liabilities and Equity [Abstract] | ||
Accounts payable | 2,767 | 2,716 |
Accrued liabilities and other current liabilities | 11,347 | 7,660 |
Reserve for veterinary invoices | 16,062 | 12,756 |
Deferred Revenue, Current | 33,027 | 22,734 |
Total current liabilities | 63,203 | 45,866 |
Long-term debt | 12,862 | 9,324 |
Deferred tax liabilities | 1,002 | 1,002 |
Other liabilities | 1,270 | 1,233 |
Total liabilities | 78,337 | 57,425 |
Common stock: $0.00001 par value per share | 0 | 0 |
Preferred Stock, Value, Outstanding | 0 | 0 |
Additional Paid-in Capital | 219,838 | 134,511 |
Accumulated other comprehensive loss | (753) | (92) |
Accumulated deficit | (83,711) | (82,784) |
Treasury stock, at cost | (6,201) | (3,201) |
Total stockholders' deficit | 129,173 | 48,434 |
Liabilities and Equity | $ 207,510 | $ 105,859 |
Consolidated Balance Sheet Cond
Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock, Shares Authorized | 100,000,000 | |
Common Stock, Shares, Outstanding | 34,025,136 | |
Preferred Stock, Shares Authorized | 10,000,000 | |
Common Stock | ||
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 | 34,781,121 | 30,778,796 |
Common Stock, Shares, Outstanding | 34,025,136 | 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 Stock
Consolidated Statement of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) | Treasury Stock [Member] | Treasury Stock, Common [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common Stock, Shares, Outstanding | 28,396,189 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings | 1,079,080 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings | $ 3,083 | $ 3,083 | |||||
Beginning Balance at Dec. 31, 2015 | 45,356 | $ 0 | 122,844 | $ (74,385) | $ (502) | $ (2,601) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Redemption of warrants | 59,999 | ||||||
Settlement of warrant liabilities | 600 | 600 | |||||
Treasury Stock, Value, Acquired, Cost Method | (600) | $ (600) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3,047 | 3,047 | |||||
Other comprehensive income (loss), net of taxes | 125 | 125 | |||||
Net loss | (6,896) | (6,896) | |||||
Ending Balance at Dec. 31, 2016 | 44,715 | $ 0 | 129,574 | (81,281) | (377) | (3,201) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Treasury Stock, Shares, Acquired | (36,321) | ||||||
Common Stock, Shares, Outstanding | 29,498,947 | ||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings | 622,549 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings | 1,375 | 1,375 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3,562 | 3,562 | |||||
Other comprehensive income (loss), net of taxes | 285 | 285 | |||||
Net loss | (1,503) | (1,503) | |||||
Ending Balance at Dec. 31, 2017 | $ 48,434 | $ 0 | 134,511 | (82,784) | (92) | (3,201) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common Stock, Shares, Outstanding | 30,121,496 | ||||||
Stock Issued During Period, Shares, New Issues | 2,090,909 | 2,090,909 | |||||
Proceeds from issuance of common stock, follow-on public offering | $ 65,638 | 65,638 | |||||
Payments to Acquire Buildings, Shares | 303,030 | ||||||
Payment to Acquire Corporate Building, Fair Value of Shares | 9,633 | 9,633 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings | 1,278,386 | ||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings | 1,806 | 1,806 | |||||
Redemption of warrants | 231,315 | ||||||
Settlement of warrant liabilities | 300 | 3,300 | $ (3,000) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4,950 | 4,950 | |||||
Other comprehensive income (loss), net of taxes | (661) | ||||||
Net loss | (927) | ||||||
Ending Balance at Dec. 31, 2018 | $ 129,173 | $ 0 | $ 219,838 | $ (83,711) | $ (753) | $ (6,201) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common Stock, Shares, Outstanding | 34,025,136 | 34,025,136 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net loss | $ (927) | $ (1,503) | $ (6,896) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation, Depletion and Amortization | 4,512 | 4,232 | 3,846 |
Stock-based compensation expense | 4,775 | 3,419 | 2,946 |
Gain on sale of equity method investment | 0 | (1,036) | 0 |
Other Operating Income (Expense), Net | (240) | (383) | 104 |
Increase (Decrease) in Operating Assets [Abstract] | |||
Accounts and other receivables | (11,248) | (10,219) | (1,830) |
Prepaid expenses and other assets | (2,628) | (179) | 48 |
Accounts payable, accrued liabilities, and other liabilities | 4,531 | 3,019 | 1,164 |
Reserve for veterinary invoices | 3,440 | 3,149 | 3,226 |
Deferred revenue | 10,465 | 9,167 | 2,398 |
Net cash provided by operating activities | 12,680 | 9,666 | 5,006 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchases of investment securities | (52,862) | (31,920) | (31,616) |
Maturities of investment securities | 35,413 | 23,372 | 27,247 |
Payments for (Proceeds from) Investments | (3,000) | 0 | 0 |
Payments to Acquire Intangible Assets | (2,959) | ||
Proceeds from Sale of Equity Method Investments | 0 | 1,402 | |
Purchases of property and equipment | (56,936) | (3,131) | (1,941) |
Payments for (Proceeds from) Other Investing Activities | (1,107) | (2,779) | (198) |
Net cash used in investing activities | (81,451) | (13,056) | (6,508) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from Issuance or Sale of Equity | 65,671 | ||
Proceeds from exercise of stock options | 3,601 | 2,545 | 3,745 |
Payments Related to Tax Withholding for Share-based Compensation | (1,839) | (1,170) | (662) |
Proceeds from debt financing, net of financing fees | 13,431 | 4,400 | 4,988 |
Repayments of Long-term Debt | (10,000) | 0 | 0 |
Proceeds from (Payments for) Other Financing Activities | 365 | (694) | (399) |
Net cash provided by financing activities | 71,229 | 5,081 | 7,672 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | (812) | 378 | 111 |
Net change in cash, cash equivalents, and restricted cash | 1,646 | 2,069 | 6,281 |
Cash, Cash Equivalents, and Restricted Cash, Carrying Value | 26,306 | 24,237 | 17,956 |
Cash, Cash Equivalents, and Restricted Cash, Carrying Value, End of Period | 27,952 | 26,306 | 24,237 |
Supplemental Cash Flow Information [Abstract] | |||
Income taxes paid | 216 | 177 | 19 |
Interest paid | 1,019 | 333 | 153 |
Redemption of Warrants Non-Cash; Common Stock | 3,000 | 600 | |
Acquisition of Corporate Real Estate Non-Cash, Common Stock | 9,640 | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | 106 | 390 | 104 |
Capital Lease Obligations Incurred | $ 0 | $ 689 | $ 559 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet Parentheticals - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock, Shares Authorized | 100,000,000 | |
Common Stock, Shares, Outstanding | 34,025,136 | |
Preferred Stock, Shares Authorized | 10,000,000 | |
Common Stock | ||
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 | 34,781,121 | 30,778,796 |
Common Stock, Shares, Outstanding | 34,025,136 | 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 |
Parent Company | Common Stock | ||
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 | 34,781,121 | 30,778,796 |
Common Stock, Shares, Outstanding | 34,025,136 | 30,121,496 |
Parent Company | 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 |
Parent Company | Treasury Stock [Member] | ||
Treasury Stock, Shares | 755,985 | 657,300 |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [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: As of December 31, 2018 2017 2016 Stock options 2,621,503 4,006,399 4,123,023 Restricted stock awards and restricted stock units 451,160 256,842 352,996 Warrants 480,000 810,000 810,000 |
Property Plant and Equipment (N
Property Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2018 2017 Land and improvements $ 15,833 $ — Building and improvements 46,561 — Software 20,338 17,221 Office equipment and other 2,772 3,022 Property and equipment, at cost 85,504 20,243 Less: Accumulated depreciation (15,701 ) (12,375 ) Property and equipment, net $ 69,803 $ 7,868 Depreciation expense related to property and equipment, inclusive of assets purchased on capital lease, was $4.3 million , $4.2 million and $3.8 million for the years ended December 31, 2018 , 2017 and 2016 |
Intangible Assets (Notes)
Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Intangible Assets The following table presents the detail of intangible assets for the periods presented (in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2018: Licenses $ 4,773 $ — $ 4,773 Patents and trademarks 743 (191 ) 552 Leases 2,959 (213 ) 2,746 Total Intangibles $ 8,475 $ (404 ) $ 8,071 December 31, 2017: Licenses $ 4,773 $ — $ 4,773 Patents and trademarks 373 (174 ) 199 Leases — — — Total Intangibles $ 5,146 $ (174 ) $ 4,972 The Company acquired an insurance company in 2007, which originally included licenses in 23 states. These licenses were valued at $4.8 million . The Company is currently licensed in all 50 states, the District of Columbia and Puerto Rico. Most licenses are renewed annually upon payment of various fees assessed by the issuing state. Renewal costs are expensed as incurred. This is considered an indefinite-lived intangible asset given the planned renewal of the certificates of authority and applicable licenses for the foreseeable future. The lease-related intangible assets relate to in-place lease agreements associated with the building acquisition in August 2018 and will be amortized over a weighted-average useful life of 5.1 years. Amortization expense associated with intangible assets for the year ended December 31, 2018 was $0.2 million , and is expected to be approximately $0.5 million |
Investment Securities (Notes)
Investment Securities (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | The amortized cost, gross unrealized holding gains and losses, and fair value of long-term and short-term investments by major security type and class of security were as follows as of December 31, 2018 and 2017 (in thousands): Amortized Gross Gross Fair As of December 31, 2018 Long-term investments: Foreign deposits $ 2,573 $ — $ — $ 2,573 Municipal bond 1,000 — (19 ) 981 $ 3,573 $ — $ (19 ) $ 3,554 Short-term investments: U.S. Treasury securities $ 6,645 $ — $ (3 ) $ 6,642 Certificates of deposit 437 — — 437 U.S. government funds 47,477 — — 47,477 $ 54,559 $ — $ (3 ) $ 54,556 Amortized Gross Gross Fair As of December 31, 2017 Long-term investments: 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): December 31, 2018 Amortized Fair Available-for-sale: Due after one year through five years 3,573 3,554 $ 3,573 $ 3,554 |
Other Investments (Notes)
Other Investments (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Other Investments [Abstract] | |
Investments and Other Noncurrent Assets [Text Block] | Other Investments Investment in Variable Interest Entity In July 2018, the Company purchased $3.0 million in preferred stock of a privately held corporation with a complementary business line. The Company does not have power over the activities that most significantly impact the economic performance of the variable interest entity and is, therefore, not the primary beneficiary. The Company's investment in preferred stock is accounted for as an available-for-sale debt security. Through January 2020, the Company has agreed to purchase an additional $4.0 million in preferred stock of the variable interest entity, contingent upon the exercise of this option by the variable interest entity. The Company has the option to purchase the variable interest entity on the fifth anniversary of the initial preferred stock purchase. Additionally, the Company has extended a $2.5 million revolving line of credit to the variable interest entity. The Company's investment and amounts loaned under the line of credit are recorded in other long-term assets on the consolidated balance sheet. As of December 31, 2018, outstanding loan balance under the line of credit was $0.6 million . The Company has also entered into a series of agreements to provide ancillary services to the variable interest entity at cost. The Company provided $0.6 million of these services for the year ended December 31, 2018, which were recorded against its operating expenses. Investment in Joint Venture In September 2018, the Company acquired a non-controlling equity interest in a joint venture, whereby it has committed to licensing certain intellectual property and contributing up to $2.2 million AUD upon the achievement of specific operational milestones over a period of at least four years from the agreement execution date. As of December 31, 2018, the Company has contributed $0.3 million |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 1,400 $ 1,400 $ — $ — Money market funds 2,010 2,010 — — Fixed maturities: Foreign deposits 2,573 2,573 — — Municipal bond 981 — 981 — Investment in variable interest entity 3,000 — — 3,000 Total $ 9,964 $ 5,983 $ 981 $ 3,000 As of December 31, 2017 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 600 $ 600 $ — $ — Money market funds 5,167 5,167 — — Fixed maturities: Foreign deposits 2,237 2,237 — — Municipal bond 1,000 — 1,000 — Total $ 9,004 $ 8,004 $ 1,000 $ — The Company measures the fair value of restricted cash, money market funds, and foreign deposits 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. The estimated fair value of the Company's investment in the variable interest entity is a Level 3 measurement, and is based on market interest rates, the assessed creditworthiness of the entity, and the estimated fair value of the entity's common stock. As of December 31, 2018, the Company estimates that the purchase price approximates the fair value. Short-term investments are carried at amortized cost and the fair value is disclosed in Note 5, Investments. The fair value of these investments is determined in the same manner as for available-for-sale securities and is considered a Level 1 measurement. Fair Value Disclosures The Company's other long-term assets balance included notes receivable of $3.0 million and $2.5 million as of December 31, 2018 and 2017, respectively, recorded at their estimated collectible amount. The Company estimates that the carrying value of the notes 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 December 31, 2018 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies The following summarizes the Company's contractual commitments as of December 31, 2018 (in thousands): Year Ending December 31, 2019 2020 2021 2022 2023 Thereafter Total Long-term debt obligations (1) $ — $ — $ 13,000 $ — $ — $ — $ 13,000 Capital and operating leases 148 24 24 6 — — 202 Other obligations (2) 2,886 325 185 168 168 2,464 6,196 Total $ 3,034 $ 349 $ 13,209 $ 174 $ 168 $ 2,464 $ 19,398 (1) Consists of a revolving line of credit. Excludes interest of the greater of 4.5% or 1.25% plus the prime rate ( 6.75% as of December 31, 2018). (2) Consists of contractual obligations from non-cancellable vendor service agreements. The Company had a lease agreement for its headquarters building located in Seattle, Washington until the Company purchased the building in August 2018. Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease. Rental expense for operating leases was $1.4 million , $1.8 million and $1.2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Legal Proceedings Certain insurance regulators in the United States have contacted the Company regarding whether employees who had helped prospective members enroll by telephone in prior years were required to have an insurance license to conduct such telephone conversations. To date, the Company has resolved each of these matters in non-material amounts and believes it is compliant with the applicable regulations. The Company is currently engaged with a limited number of state insurance regulators to resolve this same legacy issue and believes it has adequately reserved for these matters. |
Claims Reserve (Notes)
Claims Reserve (Notes) | 12 Months Ended |
Dec. 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. 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): Year Ended December 31, Subscription 2018 2017 2016 Reserve at beginning of year $ 11,059 $ 8,538 $ 5,384 Veterinary invoice expense during the period related to: Current year 190,642 155,623 123,823 Prior years 409 (69 ) 813 Total veterinary invoice expense 191,051 155,554 124,636 Amounts paid during the period related to: Current year 177,418 144,802 115,314 Prior years 10,130 7,777 5,832 Total paid 187,548 152,579 121,146 Non-cash expenses 687 454 336 Reserve at end of period $ 13,875 $ 11,059 $ 8,538 The Company's reserve for the subscription business segment increased $2.8 million from $11.1 million at December 31, 2017 to $13.9 million at December 31, 2018. This change was comprised of $191.1 million in expense recorded during the period less $187.5 million in payments of veterinary invoices. This $191.1 million in veterinary invoice expense incurred included an increase of $0.4 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. The Company's adjustments to prior year reserves were a reduction of $0.1 million and an increase of $0.8 million as a result of analysis of payment trends in the years ended December 31, 2017 and 2016, respectively. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Year Ended December 31, Other Business 2018 2017 2016 Reserve at beginning of year $ 1,697 $ 983 $ 890 Veterinary invoice expense during the period related to: Current year 23,784 14,739 9,027 Prior years (296 ) (171 ) (129 ) Total veterinary invoice expense 23,488 14,568 8,898 Amounts paid during the period related to: Current year 21,615 13,053 8,048 Prior years 1,383 801 757 Total paid 22,998 13,854 8,805 Non-cash expenses — — — Reserve at end of period $ 2,187 $ 1,697 $ 983 The Company’s reserve for the other business segment increased $0.5 million from $1.7 million at December 31, 2017 to $2.2 million at December 31, 2018. This change was comprised of $23.5 million in expense recorded during the period less $23.0 million in payments of veterinary invoices. This $23.5 million in veterinary invoice expense incurred included a reduction of $0.3 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. The Company's adjustments to decrease prior year reserves were $0.2 million and $0.1 million as a result of analysis of payment trends in each of the years ended December 31, 2017 and 2016, respectively. Veterinary invoice expenses In the following tables, the cumulative number of veterinary invoices represents the total number received as of December 31, 2018, by year the veterinary invoice relates to, referred to as the year of occurrence. If a pet is injured or becomes ill, multiple trips to the veterinarian may result in several invoices. Each of these veterinary invoices is included in the cumulative number, regardless of whether the veterinary invoice was paid. Information for years 2015 through 2017 is provided as required supplementary information. Amounts in these tables are presented on a constant currency basis to remove the impact of changes in the foreign currency exchange rate on development. The cumulative expenses as of the end of each year are revalued using the currency exchange rate as of December 31, 2018. The following table summarizes the development of veterinary invoice expense, on a constant currency basis, for the Company's subscription business segment by year of occurrence (in thousands, except for cumulative number of veterinary invoices data): Cumulative veterinary invoice expenses Reserve Cumulative number of veterinary invoices As of December 31, As of December 31, Subscription 2015 2016 2017 2018 2018 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 94,138 $ 94,691 $ 94,749 $ 94,797 $ 72 479,172 2016 $ 123,202 $ 122,990 $ 123,072 $ 271 595,563 2017 $ 154,209 $ 154,497 $ 995 715,375 2018 $ 188,825 $ 12,537 800,074 $ 561,191 $ 13,875 The following table summarizes the development of veterinary invoice expense, on a constant currency basis, for the Company's other business segment by year of occurrence (in thousands, except for cumulative number of veterinary invoices data): Cumulative veterinary invoice expenses Reserve Cumulative number of veterinary invoices As of December 31, As of December 31, Other Business 2015 2016 2017 2018 2018 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 7,973 $ 7,845 $ 7,849 $ 7,857 $ 2 46,950 2016 $ 9,027 $ 8,842 $ 8,855 $ 4 59,493 2017 $ 14,735 $ 14,417 $ 12 105,171 2018 $ 23,775 $ 2,169 160,393 $ 54,904 $ 2,187 Cumulative paid veterinary invoice expense In the following tables, amounts are by year the veterinary invoice relates to, referred to as the year of occurrence. Amounts in these tables are presented on a constant currency basis to remove the impact of changes in the foreign currency exchange rate. The cumulative amounts paid as of the end of each year are revalued using the currency exchange rate as of December 31, 2018. Information for years 2015 through 2017 is provided as required supplementary information. The following table summarizes the amounts paid for veterinary invoices, inclusive of related internal processing costs and reported on a constant currency basis, for the subscription segment (in thousands): Year Ended December 31, Subscription 2015 2016 2017 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 88,808 $ 94,406 $ 94,621 $ 94,725 2016 $ 115,045 $ 122,461 $ 122,802 2017 $ 143,958 $ 153,502 2018 $ 176,288 $ 547,317 Total amounts unpaid and recorded as a liability $ 13,875 The following table summarizes the amounts paid for veterinary invoices, inclusive of related internal processing costs and reported on a constant currency basis, for the other business segment (in thousands): Year Ended December 31, Other Business 2015 2016 2017 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 7,085 $ 7,841 $ 7,849 $ 7,855 2016 $ 8,048 $ 8,831 $ 8,851 2017 $ 13,050 $ 14,405 2018 $ 21,606 $ 52,717 Total amounts unpaid and recorded as a liability $ 2,187 |
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): Year Ended December 31, Subscription 2018 2017 2016 Reserve at beginning of year $ 11,059 $ 8,538 $ 5,384 Veterinary invoice expense during the period related to: Current year 190,642 155,623 123,823 Prior years 409 (69 ) 813 Total veterinary invoice expense 191,051 155,554 124,636 Amounts paid during the period related to: Current year 177,418 144,802 115,314 Prior years 10,130 7,777 5,832 Total paid 187,548 152,579 121,146 Non-cash expenses 687 454 336 Reserve at end of period $ 13,875 $ 11,059 $ 8,538 The Company's reserve for the subscription business segment increased $2.8 million from $11.1 million at December 31, 2017 to $13.9 million at December 31, 2018. This change was comprised of $191.1 million in expense recorded during the period less $187.5 million in payments of veterinary invoices. This $191.1 million in veterinary invoice expense incurred included an increase of $0.4 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. The Company's adjustments to prior year reserves were a reduction of $0.1 million and an increase of $0.8 million as a result of analysis of payment trends in the years ended December 31, 2017 and 2016, respectively. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Year Ended December 31, Other Business 2018 2017 2016 Reserve at beginning of year $ 1,697 $ 983 $ 890 Veterinary invoice expense during the period related to: Current year 23,784 14,739 9,027 Prior years (296 ) (171 ) (129 ) Total veterinary invoice expense 23,488 14,568 8,898 Amounts paid during the period related to: Current year 21,615 13,053 8,048 Prior years 1,383 801 757 Total paid 22,998 13,854 8,805 Non-cash expenses — — — Reserve at end of period $ 2,187 $ 1,697 $ 983 The Company’s reserve for the other business segment increased $0.5 million from $1.7 million at December 31, 2017 to $2.2 million at December 31, 2018. This change was comprised of $23.5 million in expense recorded during the period less $23.0 million in payments of veterinary invoices. This $23.5 million in veterinary invoice expense incurred included a reduction of $0.3 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. The Company's adjustments to decrease prior year reserves were $0.2 million and $0.1 million |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt In June 2018, the Company amended its credit agreement, increasing its borrowing capacity from $30.0 million to $50.0 million , extending the maturity date to June 2021, and increasing the required amount of restricted cash. 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 ( 6.75% at December 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 $1.4 million . As of December 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 were limited to the lesser of $50.0 million or 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 December 31, 2018 and 2017 . As of December 31, 2018 , available borrowing capacity on the line of credit was $36.6 million , with an outstanding balance of $0.4 million for ancillary services and letters of credit, and borrowings under the facility of $13.0 million , recorded net of financing fees of $0.1 million |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | 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 each category of the consolidated statement of operations for the years ended December 31, 2018 , 2017 and 2016 was as follows (in thousands): Year Ended December 31, 2018 2017 2016 Veterinary invoice expense $ 571 $ 355 $ 234 Other cost of revenue 356 239 41 Technology and development 209 216 246 General and administrative 2,304 1,887 1,893 Sales and marketing 1,335 722 532 Total stock-based compensation $ 4,775 $ 3,419 $ 2,946 As of December 31, 2018 , the Company had 475,368 unvested stock options and 451,160 unvested restricted stock awards and restricted stock units. Total stock-based compensation expense of $3.1 million related to unvested stock options and $7.8 million related to unvested restricted stock awards and restricted stock units is expected to be recognized over a weighted-average period of approximately 1.9 years and 2.6 years , respectively. Stock Options The grant date fair value of stock option awards are estimated on the date of grant using the Black-Scholes option-pricing model. The Company did not grant any stock options during the year ended December 31, 2018 . For the years ended December 31, 2017 and 2016 , valuation assumptions are presented in the following table: Year Ended December 31, 2017 2016 Valuation assumptions: Expected term (in years) 6.25 5.04-6.25 Expected volatility 37.1%-39.8% 37.6%-42.1% Risk-free interest rate 1.8%-2.2% 1.1%-2.0% Expected dividend yield —% —% The following table presents information regarding stock options granted, exercised and forfeited for the periods presented: Number of Options Weighted Average Exercise Price per Share Aggregate Intrinsic Value (in thousands) Outstanding as of January 1, 2016 4,871,949 $ 3.71 $ 29,644 Granted 666,664 13.37 — Exercised (1,119,367 ) 3.35 11,980 Forfeited (296,223 ) 8.14 — Outstanding as of December 31, 2016 4,123,023 5.06 43,185 Granted 657,339 17.74 — Exercised (670,823 ) 3.80 10,392 Forfeited (103,140 ) 12.25 — Outstanding as of December 31, 2017 4,006,399 7.16 88,578 Granted — — — Exercised (1,292,037 ) 2.82 36,625 Forfeited (92,859 ) 15.36 — Outstanding as of December 31, 2018 2,621,503 9.01 43,136 Exercisable at December 31, 2018 2,146,135 $ 7.46 $ 38,642 As of December 31, 2018 , stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 5.6 years and 5.0 years , respectively. The weighted-average grant date fair value per share and the fair value of options vested were as follows for the years ended December 31, 2018 , 2017 , and 2016 : Weighted Average Grant Date Fair Value per Share Fair Value of Options Vested (in thousands) Year: 2016 $ 5.64 $ 4,645 2017 $ 7.25 $ 6,313 2018 $ — $ 2,665 Restricted Stock Awards and Restricted Stock Units The below table summarizes the Company’s restricted stock award and restricted stock unit activity for the years ended December 31, 2018 , 2017 and 2016 : Number of Shares Weighted Average Grant Date Fair Value per Share Unvested shares as of January 1, 2016 467,508 $ 4.77 Granted — — Vested (116,877 ) 4.77 Forfeited — — Unvested shares as of December 31, 2016 350,631 4.77 Granted 23,659 30.19 Vested (116,877 ) 4.77 Forfeited (571 ) 30.19 Unvested shares as of December 31, 2017 256,842 4.77 Granted 375,313 28.10 Vested (149,213 ) 9.74 Forfeited (31,782 ) 28.57 Unvested shares as of December 31, 2018 451,160 $ 22.16 |
Real Estate (Notes)
Real Estate (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Business Combination Disclosure [Text Block] | Real Estate In August 2018, the Company purchased real property that houses the company headquarters located at 6100 Fourth Avenue South, Seattle, Washington. The purchase price was $65.2 million , consisting of $55.0 million in cash, 303,030 shares of common stock with an estimated fair value of $9.6 million , and transaction costs totaling $0.6 million . The issued shares are subject to a lock-up period that continues to and includes June 25, 2020. The fair value of the issued shares was estimated as of the closing date for the real estate acquisition using the Black-Scholes option pricing model and the following assumptions: August 9, 2018 Assumptions Fair Value Risk free interest rate 2.5 % Expected volatility 36.72 % Expected life (years) 1.88 Expected dividend yield — % The purchase price was allocated to the following assets based on estimates of their relative fair value (in thousands): Building and improvements $ 46,379 Land and improvements 15,833 Lease-related intangible assets 2,959 Total purchase price 65,171 |
Stockholder's Equity (Notes)
Stockholder's Equity (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders ’ Equity As of December 31, 2018 , the Company had 100,000,000 shares of common stock authorized and 34,025,136 shares of common stock outstanding. Holders of common stock are entitled to one vote on each matter properly submitted to the stockholders of the Company except those related to matters concerning possible outstanding preferred stock. At December 31, 2018 , the Company had 10,000,000 shares of undesignated shares of preferred stock authorized for future issuance and did not have any outstanding shares of preferred stock. The holders of common stock are also entitled to receive dividends as and when declared by the board of directors of the Company, whenever funds are legally available. These rights are subordinate to the dividend rights of holders of all classes of stock outstanding at the time. The Company is unable to pay dividends to stockholders as of December 31, 2018 due to restrictions in its credit agreements. Warrants During the year ended December 31, 2018, 330,000 of the Company's outstanding warrants were exercised. Warrants to purchase 480,000 shares of the Company's common stock at $10.00 |
Segments
Segments | 12 Months Ended |
Dec. 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): Year Ended December 31, 2018 2017 2016 Revenue: Subscription business $ 263,738 $ 218,354 $ 173,356 Other business 40,218 24,313 14,874 303,956 242,667 188,230 Veterinary invoice expense: Subscription business 191,051 155,554 124,636 Other business 23,488 14,568 8,898 214,539 170,122 133,534 Other cost of revenue: Subscription business 24,941 21,329 16,685 Other business 13,110 8,166 4,723 38,051 29,495 21,408 Gross profit: Subscription business 47,746 41,471 32,035 Other business 3,620 1,579 1,253 51,366 43,050 33,288 Technology and development 9,248 9,768 9,534 General and administrative 18,164 16,820 15,205 Sales and marketing: Subscription business 24,622 18,886 15,029 Other business 377 218 218 24,999 19,104 15,247 Operating loss $ (1,045 ) $ (2,642 ) $ (6,698 ) The following table presents the Company’s revenue by geographic region of the member (in thousands): Year Ended December 31, 2018 2017 2016 United States $ 246,280 $ 195,297 $ 151,361 Canada 57,676 47,370 36,869 Total revenue $ 303,956 $ 242,667 $ 188,230 Substantially all of the Company’s long-lived assets were located in the United States as of December 31, 2018 and 2017 |
Dividend Restrictions Statutory
Dividend Restrictions Statutory Surplus (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Dividend Restrictions And Statutory Suprlus [Text Block] | Dividend Restrictions and Statutory Surplus The Company’s business operations are conducted through subsidiaries, one of which is an insurance company domiciled in New York, American Pet Insurance Company, and one of which is a segregated cell business, Wyndham Segregated Account AX, located in Bermuda. In addition to general state law restrictions on payments of dividends and other distributions to stockholders applicable to all corporations, insurance companies are subject to further regulations that, among other things, may require such companies to maintain certain levels of equity and restrict the amount of dividends and other distributions that may be paid to their parent corporations. New York law restricts the ability of the Company's insurance subsidiary in New York to pay dividends to its holding company parent. These restrictions are based in part on the prior year’s statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior approval, and dividends in larger amounts, or extraordinary dividends, are subject to approval by the New York State Department of Financial Services, the subsidiary's primary regulator. An extraordinary dividend or distribution is defined as a dividend or distribution that, in the aggregate in any 12-month period, exceeds the lesser of (i) 10% of surplus as of the preceding December 31 or (ii) the insurer’s adjusted net investment income for such 12-month period, not including realized capital gains. Under regulatory requirements at December 31, 2018 , the amount of dividends that may be paid by the Company’s insurance subsidiary in New York to the Company without prior approval by regulatory authorities was $0.7 million . This insurance subsidiary did not pay dividends to the Company during the years ended December 31, 2018, 2017, and 2016. The Company's insurance subsidiary in Bermuda is regulated by the Bermuda Monetary Authority. Under the Bermuda Companies Act of 1981, as amended, a Bermuda company may not declare or pay a dividend or make a distribution out of contributed surplus if there are reasonable grounds for believing that: (a) the company is, or would be after the payment, unable to pay its liabilities as they become due; or (b) the realizable value of the company’s assets would thereby be less than its liabilities. The Segregated Accounts Company Act of 2000 further requires that dividends out of a segregated account can only be paid to the extent that the cell remains solvent. The value of its assets must remain greater than the aggregate of its liabilities, issued share capital, and share premium accounts. Per our contractual agreements with Wyndham Insurance Company (SAC) Limited, the allowable dividend is equivalent to the positive undistributed profit attributable to the shares. This insurance subsidiary paid the Company a dividend of $2.2 million and $2.7 million during the years ended December 31, 2018 and 2017, respectfully. No dividends were paid during the year ended December 31, 2016. The statutory net income for 2018 , 2017 and 2016 and statutory capital and surplus at December 31, 2018 , 2017 and 2016 , for the Company’s insurance subsidiary in New York were as follows (in thousands): As of December 31, 2018 2017 2016 Statutory net income $ 11,021 $ 7,507 $ 4,081 Statutory capital and surplus 56,244 37,190 30,451 As of December 31, 2018 , the Company’s insurance subsidiary in New York maintained $56.2 million of statutory capital and surplus which was above the required amount of $53.4 million of statutory capital and surplus to avoid additional regulatory oversight. The increase in statutory capital and surplus as of December 31, 2018 was due to the Company having sufficient history for its average historical loss and loss adjustment expense ratio to be used in the risk-based capital calculation. In prior periods, this calculation used industry average ratios due to having less than ten years of historical data. As of December 31, 2018 , the Company had $6.7 million |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes was as follows for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 United States $ (1,054 ) $ (1,965 ) $ (6,906 ) Foreign 120 34 48 $ (934 ) $ (1,931 ) $ (6,858 ) The components of income tax (benefit) expense were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current: U.S. federal & state $ (10 ) $ 183 $ 25 Foreign 37 15 13 27 198 38 Deferred: U.S. federal & state (32 ) (620 ) — Foreign (2 ) (6 ) — (34 ) (626 ) — Income tax (benefit) expense $ (7 ) $ (428 ) $ 38 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code, including, but not limited to, a corporate tax rate decrease to 21% effective January 1, 2018. In accordance with Staff Accounting Bulletin No. 118 ("SAB 118"), the Company recorded a $0.6 million income tax benefit in the prior year as an estimate in relation to remeasurement of its deferred tax liabilities. The Company has now finalized its analysis of the Tax Act's impact and no change to the estimated income tax benefit recorded at December 31, 2017 is required. A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the financial statements is presented below: Year Ended December 31, 2018 2017 2016 Federal income taxes at statutory rate 21.0 % 34.0 % 34.0 % U.S. state income taxes 4.6 (9.5 ) (0.6 ) Equity compensation 828.5 189.1 7.7 Change in valuation allowance (857.4 ) (229.6 ) (40.5 ) Meals and entertainment (5.4 ) (3.0 ) (0.9 ) Other, net (10.7 ) 2.0 (0.3 ) Change in federal tax rate — 32.1 — Credits 20.2 7.1 — Effective income tax rate 0.8 % 22.2 % (0.6 )% The principal components of the Company’s deferred tax assets and liabilities were as follows (in thousands): Year Ended December 31, 2018 2017 Deferred tax assets: Deferred revenue $ 1,371 $ 966 Accruals and reserves 475 606 Net operating loss carryforwards 26,566 18,211 Depreciation and amortization 346 317 Equity compensation 1,690 1,024 Credits 397 208 Other 180 270 Total deferred tax assets 31,025 21,602 Deferred tax liabilities: Deferred costs (279 ) (183 ) Intangible assets (1,002 ) (1,002 ) Total deferred tax liabilities (1,281 ) (1,185 ) Total deferred taxes 29,744 20,417 Less deferred tax asset valuation allowance (30,701 ) (21,419 ) Net deferred tax liability $ (957 ) $ (1,002 ) At December 31, 2018 , the Company had federal net operating loss carryforwards of $121.1 million and federal credits of $0.4 million . Use of the carryforwards is limited based on the future income of the Company. The federal net operating loss carryforwards currently would begin to expire in 2027 . Pursuant to Sections 382 and 383 of the Internal Revenue Code, annual use of the Company’s net operating loss carryforwards and credit carryforwards may be limited if the Company experiences an ownership change. As of December 31, 2018 , the utilization of approximately $0.5 million of net operating losses are subject to limitation as a result of prior ownership changes; however, subsequent ownership changes may further affect the limitation in future years. A valuation allowance is required to reduce the deferred tax assets reported if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. After consideration of all the evidence, both positive and negative, the Company has recorded a full valuation allowance against its U.S. Federal deferred tax assets as of December 31, 2018 and 2017 because the Company’s management has determined that it is more likely than not that these assets will not be fully realized. The Company intends to reinvest all foreign earnings indefinitely outside of the U.S. The Tax Act implemented a new tax on foreign subsidiary income referred to as the Global Intangible Low-Taxed Income (“GILTI”). The Company is recording GILTI on a current basis and not booking deferred taxes related to GILTI. The Company is open to examination by the U.S. federal tax jurisdiction for the years ended December 31, 2015 through 2018 . The Company is also open to examination for 2007 and forward with respect to net operating loss carryforwards generated and carried forward from those years in the United States. The Company is open to examination by the Canada Revenue Agency for the years ended December 31, 2014 through 2018 for all corporate tax matters, and open for the years ended December 31, 2011 through 2018 for transactions with non-arm’s length non-Canadian residents. The Company accounts for uncertain tax positions based on a two-step process of evaluating recognition and measurement criteria. The first step assesses whether the tax position is more likely than not to be sustained upon examination by the taxing authority, including resolution of any appeals or litigation, on the basis of the technical merits of the position. If the tax position meets the more-likely-than-not criteria, the portion of the tax benefit greater than 50% likely to be realized upon settlement with the relevant tax authority is recognized in the financial statements. No significant changes in uncertain tax positions are expected in the next twelve months. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 327 $ 120 $ 80 Increases (decreases) to tax positions related to prior periods (243 ) 91 — Increases to tax positions related to the current year 5 116 40 Balance, end of year $ 89 $ 327 $ 120 |
Retirement Plan (Notes)
Retirement Plan (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | The Company has a 401(k) plan for its U.S. employees. The plan allows employees to contribute a percentage of their pretax earnings annually, subject to limitations imposed by the Internal Revenue Service. The plan also allows the Company to make a matching contribution, subject to certain limitations. To date, the Company has made no |
Quarterly Financial Information
Quarterly Financial Information (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | The following table contains quarterly financial data for the years ended December 31, 2018 and 2017 (in thousands, except per share data). The unaudited quarterly information has been prepared on a basis consistent with the audited consolidated financial statements and includes all adjustments that the Company considers necessary for a fair presentation of the information shown. The operating results for any fiscal quarter are not necessarily indicative of the operating results for a full fiscal year or any future period and there can be no assurances that any trend reflected in such results will continue in the future. Three Months Ended Dec. 31, 2018 Sept. 30, 2018 Jun. 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sept. 30, 2017 Jun. 30, 2017 Mar. 31, 2017 Total revenues $ 82,640 $ 78,164 $ 73,392 $ 69,760 $ 66,545 $ 63,118 $ 58,275 $ 54,729 Gross profit 14,205 13,744 12,353 11,064 11,737 11,807 10,351 9,155 Net (loss) income (275 ) 1,205 (377 ) (1,480 ) (838 ) 406 411 (1,482 ) Net (loss) income per share: Basic (0.01 ) 0.04 (0.01 ) (0.05 ) (0.03 ) 0.01 0.01 (0.05 ) Diluted (0.01 ) 0.03 (0.01 ) (0.05 ) (0.03 ) 0.01 0.01 (0.05 ) Weighted-average common shares outstanding: Basic 33,716,975 33,129,416 30,721,037 30,246,585 29,847,574 30,037,282 29,510,907 29,254,681 Diluted 33,716,975 36,385,360 30,721,037 30,246,585 29,847,574 33,113,981 32,734,624 29,254,681 |
Schedule 1-Parent Only Disclosu
Schedule 1-Parent Only Disclosures [Schedule] (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | Trupanion, Inc. Condensed Statements of Comprehensive Loss (Parent Company Only, in thousands) Year Ended December 31, 2018 2017 2016 Expenses: Veterinary invoice expense $ 571 $ 354 $ 269 Other cost of revenue 357 239 41 Technology and development 512 528 531 General and administrative 4,879 4,204 3,627 Sales and marketing 1,355 889 871 Total expenses 7,674 6,214 5,339 Operating loss (7,674 ) (6,214 ) (5,339 ) Interest expense 1,184 529 218 Other (income) expense, net (2,557 ) (4,101 ) 23 Loss before equity in undistributed earnings of subsidiaries (6,301 ) (2,642 ) (5,580 ) Income tax benefit 4,042 5,302 — Equity (loss) in undistributed earnings of subsidiaries 1,332 (4,163 ) (1,316 ) Net loss $ (927 ) $ (1,503 ) $ (6,896 ) Other comprehensive income (loss), net of taxes: Other comprehensive income (loss) of subsidiaries (661 ) 285 125 Other comprehensive income (loss) (661 ) 285 125 Comprehensive loss $ (1,588 ) $ (1,218 ) $ (6,771 ) Trupanion, Inc. Condensed Balance Sheets ( Parent Company Only) (In thousands, except share data) December 31, 2018 2017 Assets Current assets: Cash and cash equivalents $ 2,133 $ 1,105 Accounts and other receivables 2,094 2,261 Prepaid expenses and other assets 661 295 Total current assets 4,888 3,661 Restricted cash 1,400 600 Property and equipment, net 568 661 Intangible assets, net 5,076 4,795 Other long-term assets 6,515 2,488 Advances to and investments in subsidiaries 125,475 47,209 Total assets $ 143,922 $ 59,414 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued liabilities, and other current liabilities $ 885 $ 654 Total current liabilities 885 654 Long-term debt 12,862 9,324 Deferred tax liabilities 1,002 1,002 Other liabilities — — Total liabilities 14,749 10,980 Stockholders’ equity: Common stock: $0.00001 par value per share, 100,000,000 shares authorized at December 31, 2018 and December 31, 2017, 34,781,121 and 34,025,136 shares issued and outstanding at December 31, 2018; 30,778,796 and 30,121,496 shares issued and outstanding at December 31, 2017 — — Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized at December 31, 2018 and December 31, 2017, and 0 shares issued and outstanding at December 31, 2018 and December 31, 2017 — — Additional paid-in capital 219,838 134,511 Accumulated other comprehensive loss (753 ) (92 ) Accumulated deficit (83,711 ) (82,784 ) Treasury stock, at cost: 755,985 shares at December 31, 2018 and 657,300 shares at December 31, 2017 (6,201 ) (3,201 ) Total stockholders’ equity 129,173 48,434 Total liabilities and stockholders’ equity $ 143,922 $ 59,414 Trupanion, Inc. Condensed Statements of Cash Flows (Parent Company Only, in thousands) Year Ended December 31, 2018 2017 2016 Operating activities Net loss $ (927 ) $ (1,503 ) $ (6,896 ) Adjustments to reconcile net loss to cash provided by (used in) operating activities: (Income) loss attributable to investments in subsidiaries (1,332 ) 4,163 1,316 Depreciation and amortization 436 697 251 Stock-based compensation expense 4,775 3,419 2,946 Gain on sale of equity method investment — (1,036 ) — Other, net 108 (380 ) 58 Changes in operating assets and liabilities (97 ) 743 1,742 Net cash provided by (used in) operating activities 2,963 6,103 (583 ) Investing activities Proceeds from sale of equity method investment — 1,402 — Purchases of property and equipment (164 ) (135 ) 1 Advances to and investments in subsidiaries (67,884 ) (12,168 ) (9,333 ) Other investments (4,237 ) (2,668 ) — Net cash used in investing activities (72,285 ) (13,570 ) (9,332 ) Financing activities Proceeds from public offering of common stock, net of offering costs 65,671 — — Proceeds from exercise of stock options 3,601 2,545 3,745 Taxes paid related to net share settlement of equity awards (1,839 ) (1,170 ) (662 ) Proceeds from debt financing, net of financing fees 13,430 4,400 4,988 Repayments of debt financing (10,000 ) — — Other financing 287 (604 ) (195 ) Net cash provided by financing activities 71,150 5,170 7,876 Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net — — — Net change in cash, cash equivalents, and restricted cash 1,828 (2,297 ) (2,039 ) Cash, cash equivalents, and restricted cash at beginning of period 1,705 4,001 6,040 Cash, cash equivalents, and restricted cash at end of period $ 3,533 $ 1,705 $ 4,001 Supplemental disclosures Interest paid 1,007 333 153 Noncash investing and financing activities: Property and equipment acquired under capital lease — 471 — Cashless exercise of common stock warrants 3,000 — 600 Issuance of common stock for acquisition of corporate real estate 9,640 — — 1. Organization and Presentation The accompanying condensed financial statements present the financial position, results of operations and cash flows for Trupanion, Inc. These condensed unconsolidated financial statements should be read in conjunction with the consolidated financial statements of Trupanion, Inc. and its subsidiaries and the notes thereto (the Consolidated Financial Statements). Investments in subsidiaries are accounted for using the equity method of accounting. Trupanion, Inc. received cash dividends from a subsidiary of $2.2 million and $2.7 million for the years ended December 31, 2018 and 2017, respectively. These cash dividends were recorded within Trupanion, Inc.'s other income and were eliminated within the consolidated financial statements of Trupanion, Inc. |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Combinations Policy [Policy Text Block] | Acquisition of Real Estate The Company’s real estate acquisition was determined to be an asset acquisition, with the purchase price allocated based on relative fair value of the assets acquired. Additionally, acquisition-related expenses were capitalized as part of the purchase price. The Company assessed fair value on the date of the acquisition based on Level 3 inputs within the fair value framework, which included estimated cash flow projections that utilized appropriate discount rates, capitalization rates, renewal probability and available market information, which included market rental rates and market rent growth rates. Estimates of future cash flows were based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of the acquired property considers the value of the property as if it were vacant. The fair value of acquired “above- and below-” market leases was based on the estimated cash flow projections utilizing discount rates that reflected the risks associated with the leases acquired. The amount recorded was based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended term for any leases with below-market renewal options. Other intangible assets acquired included amounts for in-place lease values that were based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company included estimates of lost rents at market rates during the hypothetical expected lease-up periods, which were dependent on local market conditions. In estimating costs to execute similar leases, the Company considered leasing commissions, legal and other related costs. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Asset Impairment Long-lived assets, including property and equipment, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Should an impairment exist, the impairment loss would be measured as the amount the asset's carrying value exceeds its fair value. The Company has recognized no |
Description of Business and Basis of Presentation | Description of Business 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 Company believes its data-driven, vertically-integrated approach makes its subscription the highest value for pet owners, with pricing specific to each pet’s unique characteristics. The Company strives to operate the business similar to other subscription-based businesses, with a focus on maximizing the lifetime value of each pet while sustaining a favorable ratio of lifetime value relative to pet acquisition cost, based on the Company's desired return on investment. Basis of Presentation |
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 reported amounts and related disclosures. Actual results could differ from such estimates. |
Reclassification, Policy [Policy Text Block] | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At times, cash on deposit may be in excess of the applicable federal deposit insurance corporation limits. The Company considers any cash account that is contractually restricted to withdrawal or use to be restricted cash. The Company is party to a financing agreement requiring a restricted cash balance. As of December 31, 2018 |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts and Other ReceivablesReceivables are comprised of trade receivables and other miscellaneous receivables. Accounts and other receivables are carried at their estimated collectible amounts. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Deferred Acquisition CostsThe Company incurs certain costs, including premium taxes, fees and enrollment-based bonuses, and referral fees that directly relate to the successful acquisition of new or renewal customer contracts. These costs are deferred and are included in prepaid expenses and other assets on the consolidated balance sheet and amortized over the related policy term to the applicable financial statement line item, either sales and marketing expense or other cost of revenue. |
Investment, Policy [Policy Text Block] | Investments The Company invests in investment grade fixed income securities of varying maturities. Long-term investments are classified as available-for-sale and reported at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Short-term investments are classified as held-to-maturity and reported at amortized cost. Premiums or discounts on fixed income securities are amortized or accreted over the life of the security and included in interest income. There have been no realized gains and losses on sales of fixed income securities. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The fair value hierarchy prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. The hierarchy defines three levels of valuation inputs: Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly Level 3 - Unobservable inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment primarily consists of building, land and land improvements, office equipment, internally-developed software related to the Company’s website, and internal support systems, capitalized during the application development stage of the project. Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of the respective asset: Land Not depreciable Land improvements 10 years Building 39 years Software 3 to 5 years Office equipment 3 to 5 years |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets Acquired finite-lived intangibles are amortized on a straight-line basis over the estimated useful lives of the assets. Indefinite-lived intangible assets are not amortized. The Company reviews these assets for impairment at least annually or if indicators of potential impairment exist. |
Liability Reserve Estimate, Policy [Policy Text Block] | Reserve for Veterinary Invoices 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. To determine the accrual, the Company makes assumptions based on its historical experience, including the number of veterinary invoices it expects to receive, the average cost of those veterinary invoices, the length of time between the date of the veterinary invoice and the date the Company receives it, the member's chosen deductible, and the Company's expected cost to process and administer the payments. |
Deferred Revenue, Policy [Policy Text Block] | Deferred Revenue Deferred revenue consists of subscription fees received or billed in advance of the subscription services within the Company's subscription business, and the unexpired term of premiums related to the Company's unaffiliated general agents within the other business segment. |
Revenue Recognition, Policy [Policy Text Block] | Revenue RecognitionThe Company generates revenue primarily from subscription fees and through underwriting policies for unaffiliated general agents. Revenue is recognized pro-rata over the terms of the customer contracts. |
Cost of Sales, Policy [Policy Text Block] | Veterinary Invoice ExpenseVeterinary invoice expense includes the Company’s costs to review veterinary invoices, administer the payments, and provide member services, and other operating expenses directly or indirectly related to this process. The Company also accrues for veterinary invoices that have been incurred but not yet received. This also includes amounts paid by unaffiliated general agents, and an estimate of amounts incurred and not yet paid for the other business segment. |
Other Costs of Revenue, Policy [Policy Text Block] | Other Cost of RevenueOther cost of revenue for the subscription business segment includes direct and indirect member service expenses, Territory Partner renewal fees, credit card transaction fees and premium tax expenses. Other cost of revenue for the other business segment includes the commissions the Company pays to unaffiliated general agents, costs to administer the programs in the other business segment and premium taxes on the sales in this segment. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | General and Administrative General and administrative expenses consist primarily of personnel costs and related expenses for the Company’s finance, actuarial, human resources, legal, regulatory, and general management functions, as well as facilities and professional services. Sales and Marketing |
Research and Development Expense, Policy [Policy Text Block] | Technology and DevelopmentTechnology and development expenses primarily consist of personnel costs and related expenses for the Company's technology staff, which includes information technology development and infrastructure support and third-party services, as well as depreciation of hardware and capitalized software. |
Advertising Costs, Policy [Policy Text Block] | Advertising Advertising costs are expensed as incurred, with the exception of television advertisements, which are expensed the first time each advertisement is aired. Advertising costs amounted to $6.3 million , $4.9 million and $4.0 million , in the years ended December 31, 2018 , 2017 and 2016 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Compensation expense related to stock-based transactions, including employee and non-employee stock option awards, restricted stock awards, and restricted stock units, is measured and recognized in the financial statements based on fair value. The fair value of restricted stock awards and restricted stock units is the common stock price as of the measurement date. The fair value of stock options is estimated on the measurement date using the Black-Scholes option-pricing model that requires management to apply judgment and make estimates, including: • Expected volatility —The Company estimates the expected volatility based on the historical volatility of a representative group of publicly traded companies with similar characteristics to the Company, and its own historical volatility; • Expected term for awards granted to employees —The Company has based its expected term for awards issued to employees on the simplified method, as permitted by the SEC Staff Accounting Bulletin No. 110, Share-Based Payment, as the Company has insufficient historical information regarding its stock options to provide a basis for an estimate; • Risk-free interest rate —The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the options; and • Expected dividend yield —The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero. Stock-based compensation expense for stock options, restricted stock awards, and restricted stock units is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The Company recognizes forfeitures when they occur. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company uses the asset and liability approach for accounting and reporting income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases, operating loss, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a tax rate change is recognized in the period that includes the enactment date. Valuation allowances are provided for when it is considered more likely than not that deferred tax assets will not be realized. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The Company’s consolidated financial statements are reported in U.S. dollars. Assets and liabilities denominated in foreign currencies were translated to U.S. dollars, the reporting currency, at the exchange rates in effect on the balance sheet date. Revenue and expenses denominated in foreign currencies were translated to U.S. dollars using a weighted-average rate for the relevant reporting period. Cumulative translation adjustments of $0.7 million , $0.1 million , and $0.4 million |
Reinsurance Accounting Policy [Policy Text Block] | Insurance Operations Effective January 1, 2015, the Company formed a segregated account in Bermuda as part of Wyndham Insurance Company (SAC) Limited (WICL), and entered into a revised fronting and reinsurance arrangement with Omega General Insurance Company (Omega) to include its newly formed segregated account. The Company maintains all risk with the business written in Canada and consolidates the entity in its financial statements. Dividends are allowed subject to the Segregated Accounts Company Act of 2000, which allows for dividends only to the extent that the entity remains solvent and the value of its assets remain greater than the aggregate of its liabilities and its issued share capital and share premium accounts. For the Company’s Canadian business, all plans are written by Omega and the risk is assumed by the Company through a fronting and reinsurance agreement. Premiums are recognized and earned pro rata over the terms of the related customer contracts. Revenue recognized from the agreement in 2018, 2017, and 2016 was $57.4 million , $47.1 million and $36.5 million , respectively, and deferred revenue relating to this arrangement at December 31, 2018 and 2017 was $2.1 million and $1.8 million , respectively. Reinsurance revenue was 19% of total revenue in 2018, 2017, and 2016. Cash designated for the purpose of paying claims related to this reinsurance agreement was $3.9 million and $2.8 million at December 31, 2018 and 2017, respectively. In addition, as required by the Office of the Superintendent of Financial institutions regulations related to the Company’s reinsurance agreement with Omega, the Company is required to fund a Canadian Trust account with the greater of CAD $2.0 million or 115% of unearned Canadian premium plus 15% of outstanding Canadian claims, including all incurred but not reported claims. As of December 31, 2018, the account balance was CAD $3.5 million and the Company was in compliance with all requirements. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and investments. The Company manages its risk by investing cash equivalents and investment securities in money market instruments and securities of the U.S. government, U.S. government agencies and high-credit-quality issuers of debt securities. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In 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 will adopt this guidance as of January 1, 2019 using the modified retrospective transition method, and will elect all applicable practical expedients upon the adoption. Based on the lease portfolio as of December 31, 2018, the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In June 2016, the FASB issued an ASU amending the measurement of credit losses on financial instruments. The ASU requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The Company is currently in the process of evaluating the impact the adoption of this ASU will have on its consolidated financial statements. |
Nature of Operations and Summary of Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies Description of Business Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada and Puerto Rico. The Company believes its data-driven, vertically-integrated approach makes its subscription the highest value for pet owners, with pricing specific to each pet’s unique characteristics. The Company strives to operate the business similar to other subscription-based businesses, with a focus on maximizing the lifetime value of each pet while sustaining a favorable ratio of lifetime value relative to pet acquisition cost, based on the Company's desired return on investment. Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from such estimates. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At times, cash on deposit may be in excess of the applicable federal deposit insurance corporation limits. The Company considers any cash account that is contractually restricted to withdrawal or use to be restricted cash. The Company is party to a financing agreement requiring a restricted cash balance. As of December 31, 2018 , the Company was in compliance with all requirements. Accounts and Other Receivables Receivables are comprised of trade receivables and other miscellaneous receivables. Accounts and other receivables are carried at their estimated collectible amounts. Deferred Acquisition Costs The Company incurs certain costs, including premium taxes, fees and enrollment-based bonuses, and referral fees that directly relate to the successful acquisition of new or renewal customer contracts. These costs are deferred and are included in prepaid expenses and other assets on the consolidated balance sheet and amortized over the related policy term to the applicable financial statement line item, either sales and marketing expense or other cost of revenue. Deferred acquisition costs as of December 31, 2018 and December 31, 2017 were $1.3 million and $1.0 million , respectively. Amortized deferred acquisition costs classified within sales and marketing amounted to $2.1 million , $1.7 million , and $1.4 million and amortized deferred acquisition costs classified within other cost of revenue amounted to $15.9 million , $13.2 million , and $10.7 million , as of December 31, 2018, 2017, and 2016, respectively. Investments The Company invests in investment grade fixed income securities of varying maturities. Long-term investments are classified as available-for-sale and reported at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Short-term investments are classified as held-to-maturity and reported at amortized cost. Premiums or discounts on fixed income securities are amortized or accreted over the life of the security and included in interest income. There have been no realized gains and losses on sales of fixed income securities. The Company evaluates whether declines in the fair value of its investments below book value are other-than-temporary. This evaluation includes the Company's ability and intent to hold the security until an expected recovery occurs, the severity and duration of the unrealized loss, as well as all available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable forecasts, when developing estimates of cash flows expected to be collected. Fair Value of Financial Instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The fair value hierarchy prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. The hierarchy defines three levels of valuation inputs: Level 1 - Quoted prices in active markets for identical assets or liabilities Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly Level 3 - Unobservable inputs that reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability The Company's financial instruments, in addition to those presented in Note 7, Fair Value, include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. The carrying amounts of accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short-term nature of these instruments. Property and Equipment Property and equipment primarily consists of building, land and land improvements, office equipment, internally-developed software related to the Company’s website, and internal support systems, capitalized during the application development stage of the project. Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful life of the respective asset: Land Not depreciable Land improvements 10 years Building 39 years Software 3 to 5 years Office equipment 3 to 5 years Intangible Assets Acquired finite-lived intangibles are amortized on a straight-line basis over the estimated useful lives of the assets. Indefinite-lived intangible assets are not amortized. The Company reviews these assets for impairment at least annually or if indicators of potential impairment exist. Asset Impairment Long-lived assets, including property and equipment, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Should an impairment exist, the impairment loss would be measured as the amount the asset's carrying value exceeds its fair value. The Company has recognized no impairment loss on long-lived assets for the years ended December 31, 2018, 2017, and 2016. Reserve for Veterinary Invoices 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. To determine the accrual, the Company makes assumptions based on its historical experience, including the number of veterinary invoices it expects to receive, the average cost of those veterinary invoices, the length of time between the date of the veterinary invoice and the date the Company receives it, the member's chosen deductible, and the Company's expected cost to process and administer the payments. Deferred Revenue Deferred revenue consists of subscription fees received or billed in advance of the subscription services within the Company's subscription business, and the unexpired term of premiums related to the Company's unaffiliated general agents within the other business segment. Revenue Recognition The Company generates revenue primarily from subscription fees and through underwriting policies for unaffiliated general agents. Revenue is recognized pro-rata over the terms of the customer contracts. Veterinary Invoice Expense Veterinary invoice expense includes the Company’s costs to review veterinary invoices, administer the payments, and provide member services, and other operating expenses directly or indirectly related to this process. The Company also accrues for veterinary invoices that have been incurred but not yet received. This also includes amounts paid by unaffiliated general agents, and an estimate of amounts incurred and not yet paid for the other business segment. Other Cost of Revenue Other cost of revenue for the subscription business segment includes direct and indirect member service expenses, Territory Partner renewal fees, credit card transaction fees and premium tax expenses. Other cost of revenue for the other business segment includes the commissions the Company pays to unaffiliated general agents, costs to administer the programs in the other business segment and premium taxes on the sales in this segment. Technology and Development Technology and development expenses primarily consist of personnel costs and related expenses for the Company's technology staff, which includes information technology development and infrastructure support and third-party services, as well as depreciation of hardware and capitalized software. General and Administrative General and administrative expenses consist primarily of personnel costs and related expenses for the Company’s finance, actuarial, human resources, legal, regulatory, and general management functions, as well as facilities and professional services. Sales and Marketing Sales and marketing expenses consist of costs to educate veterinarians and consumers about the benefits of Trupanion, to generate leads, and to convert leads to enrolled pets, as well as print, online and promotional advertising costs, and employee compensation and related costs. Other (Income) Expense, Net Other income was $1.3 million for the year ended December 31, 2018. Interest income of $0.9 million , $0.2 million , and $0.1 million was recorded in other income for the years ended December 31, 2018, 2017, and 2016, respectively. Other income in the year ended December 31, 2017 included a gain of $1.0 million from the sale of the Company's equity method investment. Advertising Advertising costs are expensed as incurred, with the exception of television advertisements, which are expensed the first time each advertisement is aired. Advertising costs amounted to $6.3 million , $4.9 million and $4.0 million , in the years ended December 31, 2018 , 2017 and 2016 , respectively. Stock-Based Compensation Compensation expense related to stock-based transactions, including employee and non-employee stock option awards, restricted stock awards, and restricted stock units, is measured and recognized in the financial statements based on fair value. The fair value of restricted stock awards and restricted stock units is the common stock price as of the measurement date. The fair value of stock options is estimated on the measurement date using the Black-Scholes option-pricing model that requires management to apply judgment and make estimates, including: • Expected volatility —The Company estimates the expected volatility based on the historical volatility of a representative group of publicly traded companies with similar characteristics to the Company, and its own historical volatility; • Expected term for awards granted to employees —The Company has based its expected term for awards issued to employees on the simplified method, as permitted by the SEC Staff Accounting Bulletin No. 110, Share-Based Payment, as the Company has insufficient historical information regarding its stock options to provide a basis for an estimate; • Risk-free interest rate —The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the options; and • Expected dividend yield —The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero. Stock-based compensation expense for stock options, restricted stock awards, and restricted stock units is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The Company recognizes forfeitures when they occur. Income Taxes The Company uses the asset and liability approach for accounting and reporting income taxes. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases, operating loss, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a tax rate change is recognized in the period that includes the enactment date. Valuation allowances are provided for when it is considered more likely than not that deferred tax assets will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than a 50% likelihood of being realized. Penalties and interest are classified as a component of income taxes. Foreign Currency Translation The Company’s consolidated financial statements are reported in U.S. dollars. Assets and liabilities denominated in foreign currencies were translated to U.S. dollars, the reporting currency, at the exchange rates in effect on the balance sheet date. Revenue and expenses denominated in foreign currencies were translated to U.S. dollars using a weighted-average rate for the relevant reporting period. Cumulative translation adjustments of $0.7 million , $0.1 million , and $0.4 million were recorded in accumulated other comprehensive loss as of December 31, 2018, 2017, and 2016, respectively. Insurance Operations Effective January 1, 2015, the Company formed a segregated account in Bermuda as part of Wyndham Insurance Company (SAC) Limited (WICL), and entered into a revised fronting and reinsurance arrangement with Omega General Insurance Company (Omega) to include its newly formed segregated account. The Company maintains all risk with the business written in Canada and consolidates the entity in its financial statements. Dividends are allowed subject to the Segregated Accounts Company Act of 2000, which allows for dividends only to the extent that the entity remains solvent and the value of its assets remain greater than the aggregate of its liabilities and its issued share capital and share premium accounts. For the Company’s Canadian business, all plans are written by Omega and the risk is assumed by the Company through a fronting and reinsurance agreement. Premiums are recognized and earned pro rata over the terms of the related customer contracts. Revenue recognized from the agreement in 2018, 2017, and 2016 was $57.4 million , $47.1 million and $36.5 million , respectively, and deferred revenue relating to this arrangement at December 31, 2018 and 2017 was $2.1 million and $1.8 million , respectively. Reinsurance revenue was 19% of total revenue in 2018, 2017, and 2016. Cash designated for the purpose of paying claims related to this reinsurance agreement was $3.9 million and $2.8 million at December 31, 2018 and 2017, respectively. In addition, as required by the Office of the Superintendent of Financial institutions regulations related to the Company’s reinsurance agreement with Omega, the Company is required to fund a Canadian Trust account with the greater of CAD $2.0 million or 115% of unearned Canadian premium plus 15% of outstanding Canadian claims, including all incurred but not reported claims. As of December 31, 2018, the account balance was CAD $3.5 million and the Company was in compliance with all requirements. The Company has not transferred any risk to third-party reinsurers. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and investments. The Company manages its risk by investing cash equivalents and investment securities in money market instruments and securities of the U.S. government, U.S. government agencies and high-credit-quality issuers of debt securities. Follow-on Common Stock Offerings In June 2018, the Company completed a follow-on public offering (the June 2018 follow-on public offering) whereby the Company sold 2,090,909 shares of common stock at a price to the public of $33.00 per share. The Company received aggregate net proceeds from the June 2018 follow-on public offering of $65.7 million , after deducting underwriting discounts and commissions and offering expenses payable by the Company. The proceeds were primarily used to purchase real estate consisting of properties in use as the Company's home office. In addition, in August 2018, the Company issued 303,030 shares of common stock via a private placement to an accredited investor as a portion of the purchase price of the real estate. See Note 12, Real Estate. Acquisition of Real Estate The Company’s real estate acquisition was determined to be an asset acquisition, with the purchase price allocated based on relative fair value of the assets acquired. Additionally, acquisition-related expenses were capitalized as part of the purchase price. The Company assessed fair value on the date of the acquisition based on Level 3 inputs within the fair value framework, which included estimated cash flow projections that utilized appropriate discount rates, capitalization rates, renewal probability and available market information, which included market rental rates and market rent growth rates. Estimates of future cash flows were based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of the acquired property considers the value of the property as if it were vacant. The fair value of acquired “above- and below-” market leases was based on the estimated cash flow projections utilizing discount rates that reflected the risks associated with the leases acquired. The amount recorded was based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended term for any leases with below-market renewal options. Other intangible assets acquired included amounts for in-place lease values that were based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company included estimates of lost rents at market rates during the hypothetical expected lease-up periods, which were dependent on local market conditions. In estimating costs to execute similar leases, the Company considered leasing commissions, legal and other related costs. The results of operations related to our ownership of the building are included in the Company’s Consolidated Statements of Operations from the date of acquisition. Rental Income The Company leases a portion of its building to third parties and records related rental income within general and administrative expense in the Consolidated Statements of Operations. The Company recorded rental income of $0.9 million for the year ended December 31, 2018. The following table summarizes the Company's future rental payments to be received from non-cancellable leases in place as of December 31, 2018 (in thousands): Year ending December 31: 2019 $ 2,129 2020 1,224 2021 1,210 2022 1,173 2023 1,210 Thereafter 3,238 Total rental payments $ 10,184 Recent Accounting Pronouncements In 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 will adopt this guidance as of January 1, 2019 using the modified retrospective transition method, and will elect all applicable practical expedients upon the adoption. Based on the lease portfolio as of December 31, 2018, the Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In June 2016, the FASB issued an ASU amending the measurement of credit losses on financial instruments. The ASU requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. This replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. This ASU is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2019. The Company is currently in the process of evaluating the impact the adoption of this ASU will have on its consolidated financial statements. |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Rental Income The Company leases a portion of its building to third parties and records related rental income within general and administrative expense in the Consolidated Statements of Operations. The Company recorded rental income of $0.9 million for the year ended December 31, 2018. The following table summarizes the Company's future rental payments to be received from non-cancellable leases in place as of December 31, 2018 (in thousands): Year ending December 31: 2019 $ 2,129 2020 1,224 2021 1,210 2022 1,173 2023 1,210 Thereafter 3,238 Total rental payments $ 10,184 Year Ending December 31, 2019 2020 2021 2022 2023 Thereafter Total Long-term debt obligations (1) $ — $ — $ 13,000 $ — $ — $ — $ 13,000 Capital and operating leases 148 24 24 6 — — 202 Other obligations (2) 2,886 325 185 168 168 2,464 6,196 Total $ 3,034 $ 349 $ 13,209 $ 174 $ 168 $ 2,464 $ 19,398 |
Follow-on Public Offering, June 2018 [Table Text Block] | Follow-on Common Stock Offerings In June 2018, the Company completed a follow-on public offering (the June 2018 follow-on public offering) whereby the Company sold 2,090,909 shares of common stock at a price to the public of $33.00 per share. The Company received aggregate net proceeds from the June 2018 follow-on public offering of $65.7 million , after deducting underwriting discounts and commissions and offering expenses payable by the Company. The proceeds were primarily used to purchase real estate consisting of properties in use as the Company's home office. In addition, in August 2018, the Company issued 303,030 |
Other Investments details (Poli
Other Investments details (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Other Investments [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | Investment in Variable Interest Entity In July 2018, the Company purchased $3.0 million in preferred stock of a privately held corporation with a complementary business line. The Company does not have power over the activities that most significantly impact the economic performance of the variable interest entity and is, therefore, not the primary beneficiary. The Company's investment in preferred stock is accounted for as an available-for-sale debt security. Through January 2020, the Company has agreed to purchase an additional $4.0 million in preferred stock of the variable interest entity, contingent upon the exercise of this option by the variable interest entity. The Company has the option to purchase the variable interest entity on the fifth anniversary of the initial preferred stock purchase. Additionally, the Company has extended a $2.5 million |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investment in Joint Venture In September 2018, the Company acquired a non-controlling equity interest in a joint venture, whereby it has committed to licensing certain intellectual property and contributing up to $2.2 million AUD upon the achievement of specific operational milestones over a period of at least four years from the agreement execution date. As of December 31, 2018, the Company has contributed $0.3 million |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following potentially dilutive equity securities were not included in the diluted earnings per common share calculation because they would have had an antidilutive effect: As of December 31, 2018 2017 2016 Stock options 2,621,503 4,006,399 4,123,023 Restricted stock awards and restricted stock units 451,160 256,842 352,996 Warrants 480,000 810,000 810,000 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consisted of the following (in thousands): December 31, 2018 2017 Land and improvements $ 15,833 $ — Building and improvements 46,561 — Software 20,338 17,221 Office equipment and other 2,772 3,022 Property and equipment, at cost 85,504 20,243 Less: Accumulated depreciation (15,701 ) (12,375 ) Property and equipment, net $ 69,803 $ 7,868 |
Investment Securities Available
Investment Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment [Table Text Block] | The amortized cost, gross unrealized holding gains and losses, and fair value of long-term and short-term investments by major security type and class of security were as follows as of December 31, 2018 and 2017 (in thousands): Amortized Gross Gross Fair As of December 31, 2018 Long-term investments: Foreign deposits $ 2,573 $ — $ — $ 2,573 Municipal bond 1,000 — (19 ) 981 $ 3,573 $ — $ (19 ) $ 3,554 Short-term investments: U.S. Treasury securities $ 6,645 $ — $ (3 ) $ 6,642 Certificates of deposit 437 — — 437 U.S. government funds 47,477 — — 47,477 $ 54,559 $ — $ (3 ) $ 54,556 Amortized Gross Gross Fair As of December 31, 2017 Long-term investments: 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): December 31, 2018 Amortized Fair Available-for-sale: Due after one year through five years 3,573 3,554 $ 3,573 $ 3,554 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 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 December 31, 2018 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 1,400 $ 1,400 $ — $ — Money market funds 2,010 2,010 — — Fixed maturities: Foreign deposits 2,573 2,573 — — Municipal bond 981 — 981 — Investment in variable interest entity 3,000 — — 3,000 Total $ 9,964 $ 5,983 $ 981 $ 3,000 As of December 31, 2017 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 600 $ 600 $ — $ — Money market funds 5,167 5,167 — — Fixed maturities: Foreign deposits 2,237 2,237 — — Municipal bond 1,000 — 1,000 — Total $ 9,004 $ 8,004 $ 1,000 $ — |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Rental Income The Company leases a portion of its building to third parties and records related rental income within general and administrative expense in the Consolidated Statements of Operations. The Company recorded rental income of $0.9 million for the year ended December 31, 2018. The following table summarizes the Company's future rental payments to be received from non-cancellable leases in place as of December 31, 2018 (in thousands): Year ending December 31: 2019 $ 2,129 2020 1,224 2021 1,210 2022 1,173 2023 1,210 Thereafter 3,238 Total rental payments $ 10,184 Year Ending December 31, 2019 2020 2021 2022 2023 Thereafter Total Long-term debt obligations (1) $ — $ — $ 13,000 $ — $ — $ — $ 13,000 Capital and operating leases 148 24 24 6 — — 202 Other obligations (2) 2,886 325 185 168 168 2,464 6,196 Total $ 3,034 $ 349 $ 13,209 $ 174 $ 168 $ 2,464 $ 19,398 |
Claims Reserve (Tables)
Claims Reserve (Tables) | 12 Months Ended |
Dec. 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): Year Ended December 31, Subscription 2018 2017 2016 Reserve at beginning of year $ 11,059 $ 8,538 $ 5,384 Veterinary invoice expense during the period related to: Current year 190,642 155,623 123,823 Prior years 409 (69 ) 813 Total veterinary invoice expense 191,051 155,554 124,636 Amounts paid during the period related to: Current year 177,418 144,802 115,314 Prior years 10,130 7,777 5,832 Total paid 187,548 152,579 121,146 Non-cash expenses 687 454 336 Reserve at end of period $ 13,875 $ 11,059 $ 8,538 The Company's reserve for the subscription business segment increased $2.8 million from $11.1 million at December 31, 2017 to $13.9 million at December 31, 2018. This change was comprised of $191.1 million in expense recorded during the period less $187.5 million in payments of veterinary invoices. This $191.1 million in veterinary invoice expense incurred included an increase of $0.4 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. The Company's adjustments to prior year reserves were a reduction of $0.1 million and an increase of $0.8 million as a result of analysis of payment trends in the years ended December 31, 2017 and 2016, respectively. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Year Ended December 31, Other Business 2018 2017 2016 Reserve at beginning of year $ 1,697 $ 983 $ 890 Veterinary invoice expense during the period related to: Current year 23,784 14,739 9,027 Prior years (296 ) (171 ) (129 ) Total veterinary invoice expense 23,488 14,568 8,898 Amounts paid during the period related to: Current year 21,615 13,053 8,048 Prior years 1,383 801 757 Total paid 22,998 13,854 8,805 Non-cash expenses — — — Reserve at end of period $ 2,187 $ 1,697 $ 983 The Company’s reserve for the other business segment increased $0.5 million from $1.7 million at December 31, 2017 to $2.2 million at December 31, 2018. This change was comprised of $23.5 million in expense recorded during the period less $23.0 million in payments of veterinary invoices. This $23.5 million in veterinary invoice expense incurred included a reduction of $0.3 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. The Company's adjustments to decrease prior year reserves were $0.2 million and $0.1 million |
Short-duration Insurance Contracts, Claims Development [Table Text Block] | The following table summarizes the development of veterinary invoice expense, on a constant currency basis, for the Company's subscription business segment by year of occurrence (in thousands, except for cumulative number of veterinary invoices data): Cumulative veterinary invoice expenses Reserve Cumulative number of veterinary invoices As of December 31, As of December 31, Subscription 2015 2016 2017 2018 2018 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 94,138 $ 94,691 $ 94,749 $ 94,797 $ 72 479,172 2016 $ 123,202 $ 122,990 $ 123,072 $ 271 595,563 2017 $ 154,209 $ 154,497 $ 995 715,375 2018 $ 188,825 $ 12,537 800,074 $ 561,191 $ 13,875 The following table summarizes the development of veterinary invoice expense, on a constant currency basis, for the Company's other business segment by year of occurrence (in thousands, except for cumulative number of veterinary invoices data): Cumulative veterinary invoice expenses Reserve Cumulative number of veterinary invoices As of December 31, As of December 31, Other Business 2015 2016 2017 2018 2018 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 7,973 $ 7,845 $ 7,849 $ 7,857 $ 2 46,950 2016 $ 9,027 $ 8,842 $ 8,855 $ 4 59,493 2017 $ 14,735 $ 14,417 $ 12 105,171 2018 $ 23,775 $ 2,169 160,393 $ 54,904 $ 2,187 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Table Text Block] | The following table summarizes the amounts paid for veterinary invoices, inclusive of related internal processing costs and reported on a constant currency basis, for the subscription segment (in thousands): Year Ended December 31, Subscription 2015 2016 2017 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 88,808 $ 94,406 $ 94,621 $ 94,725 2016 $ 115,045 $ 122,461 $ 122,802 2017 $ 143,958 $ 153,502 2018 $ 176,288 $ 547,317 Total amounts unpaid and recorded as a liability $ 13,875 The following table summarizes the amounts paid for veterinary invoices, inclusive of related internal processing costs and reported on a constant currency basis, for the other business segment (in thousands): Year Ended December 31, Other Business 2015 2016 2017 2018 Year of Occurrence (unaudited) (unaudited) (unaudited) 2015 $ 7,085 $ 7,841 $ 7,849 $ 7,855 2016 $ 8,048 $ 8,831 $ 8,851 2017 $ 13,050 $ 14,405 2018 $ 21,606 $ 52,717 Total amounts unpaid and recorded as a liability $ 2,187 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation expense recognized in each category of the consolidated statement of operations for the years ended December 31, 2018 , 2017 and 2016 was as follows (in thousands): Year Ended December 31, 2018 2017 2016 Veterinary invoice expense $ 571 $ 355 $ 234 Other cost of revenue 356 239 41 Technology and development 209 216 246 General and administrative 2,304 1,887 1,893 Sales and marketing 1,335 722 532 Total stock-based compensation $ 4,775 $ 3,419 $ 2,946 As of December 31, 2018 , the Company had 475,368 unvested stock options and 451,160 unvested restricted stock awards and restricted stock units. Total stock-based compensation expense of $3.1 million related to unvested stock options and $7.8 million related to unvested restricted stock awards and restricted stock units is expected to be recognized over a weighted-average period of approximately 1.9 years and 2.6 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | The weighted-average grant date fair value per share and the fair value of options vested were as follows for the years ended December 31, 2018 , 2017 , and 2016 : Weighted Average Grant Date Fair Value per Share Fair Value of Options Vested (in thousands) Year: 2016 $ 5.64 $ 4,645 2017 $ 7.25 $ 6,313 2018 $ — $ 2,665 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Stock Options The grant date fair value of stock option awards are estimated on the date of grant using the Black-Scholes option-pricing model. The Company did not grant any stock options during the year ended December 31, 2018 . For the years ended December 31, 2017 and 2016 , valuation assumptions are presented in the following table: Year Ended December 31, 2017 2016 Valuation assumptions: Expected term (in years) 6.25 5.04-6.25 Expected volatility 37.1%-39.8% 37.6%-42.1% Risk-free interest rate 1.8%-2.2% 1.1%-2.0% Expected dividend yield —% —% |
Schedule of Share-based Compensation, Stock Options, Activity | Number of Options Weighted Average Exercise Price per Share Aggregate Intrinsic Value (in thousands) Outstanding as of January 1, 2016 4,871,949 $ 3.71 $ 29,644 Granted 666,664 13.37 — Exercised (1,119,367 ) 3.35 11,980 Forfeited (296,223 ) 8.14 — Outstanding as of December 31, 2016 4,123,023 5.06 43,185 Granted 657,339 17.74 — Exercised (670,823 ) 3.80 10,392 Forfeited (103,140 ) 12.25 — Outstanding as of December 31, 2017 4,006,399 7.16 88,578 Granted — — — Exercised (1,292,037 ) 2.82 36,625 Forfeited (92,859 ) 15.36 — Outstanding as of December 31, 2018 2,621,503 9.01 43,136 Exercisable at December 31, 2018 2,146,135 $ 7.46 $ 38,642 As of December 31, 2018 , stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 5.6 years and 5.0 years , respectively. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The below table summarizes the Company’s restricted stock award and restricted stock unit activity for the years ended December 31, 2018 , 2017 and 2016 : Number of Shares Weighted Average Grant Date Fair Value per Share Unvested shares as of January 1, 2016 467,508 $ 4.77 Granted — — Vested (116,877 ) 4.77 Forfeited — — Unvested shares as of December 31, 2016 350,631 4.77 Granted 23,659 30.19 Vested (116,877 ) 4.77 Forfeited (571 ) 30.19 Unvested shares as of December 31, 2017 256,842 4.77 Granted 375,313 28.10 Vested (149,213 ) 9.74 Forfeited (31,782 ) 28.57 Unvested shares as of December 31, 2018 451,160 $ 22.16 |
Real Estate (Tables)
Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Business Combination, Consideration Transferred [Table Text Block] | In August 2018, the Company purchased real property that houses the company headquarters located at 6100 Fourth Avenue South, Seattle, Washington. The purchase price was $65.2 million , consisting of $55.0 million in cash, 303,030 shares of common stock with an estimated fair value of $9.6 million , and transaction costs totaling $0.6 million . The issued shares are subject to a lock-up period that continues to and includes June 25, 2020. The fair value of the issued shares was estimated as of the closing date for the real estate acquisition using the Black-Scholes option pricing model and the following assumptions: August 9, 2018 Assumptions Fair Value Risk free interest rate 2.5 % Expected volatility 36.72 % Expected life (years) 1.88 Expected dividend yield — % |
Business Acquisition, Purchase Price Allocation, Buildings [Table Text Block] | The purchase price was allocated to the following assets based on estimates of their relative fair value (in thousands): Building and improvements $ 46,379 Land and improvements 15,833 Lease-related intangible assets 2,959 Total purchase price 65,171 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 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): Year Ended December 31, 2018 2017 2016 Revenue: Subscription business $ 263,738 $ 218,354 $ 173,356 Other business 40,218 24,313 14,874 303,956 242,667 188,230 Veterinary invoice expense: Subscription business 191,051 155,554 124,636 Other business 23,488 14,568 8,898 214,539 170,122 133,534 Other cost of revenue: Subscription business 24,941 21,329 16,685 Other business 13,110 8,166 4,723 38,051 29,495 21,408 Gross profit: Subscription business 47,746 41,471 32,035 Other business 3,620 1,579 1,253 51,366 43,050 33,288 Technology and development 9,248 9,768 9,534 General and administrative 18,164 16,820 15,205 Sales and marketing: Subscription business 24,622 18,886 15,029 Other business 377 218 218 24,999 19,104 15,247 Operating loss $ (1,045 ) $ (2,642 ) $ (6,698 ) |
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): Year Ended December 31, 2018 2017 2016 United States $ 246,280 $ 195,297 $ 151,361 Canada 57,676 47,370 36,869 Total revenue $ 303,956 $ 242,667 $ 188,230 |
Dividend Restrictions Statuto_2
Dividend Restrictions Statutory Surplus (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure [Table Text Block] | The statutory net income for 2018 , 2017 and 2016 and statutory capital and surplus at December 31, 2018 , 2017 and 2016 , for the Company’s insurance subsidiary in New York were as follows (in thousands): As of December 31, 2018 2017 2016 Statutory net income $ 11,021 $ 7,507 $ 4,081 Statutory capital and surplus 56,244 37,190 30,451 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Loss before income taxes was as follows for the years ended December 31, 2018 , 2017 and 2016 (in thousands): Year Ended December 31, 2018 2017 2016 United States $ (1,054 ) $ (1,965 ) $ (6,906 ) Foreign 120 34 48 $ (934 ) $ (1,931 ) $ (6,858 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax (benefit) expense were as follows (in thousands): Year Ended December 31, 2018 2017 2016 Current: U.S. federal & state $ (10 ) $ 183 $ 25 Foreign 37 15 13 27 198 38 Deferred: U.S. federal & state (32 ) (620 ) — Foreign (2 ) (6 ) — (34 ) (626 ) — Income tax (benefit) expense $ (7 ) $ (428 ) $ 38 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax expense at the statutory federal income tax rate and income taxes as reflected in the financial statements is presented below: Year Ended December 31, 2018 2017 2016 Federal income taxes at statutory rate 21.0 % 34.0 % 34.0 % U.S. state income taxes 4.6 (9.5 ) (0.6 ) Equity compensation 828.5 189.1 7.7 Change in valuation allowance (857.4 ) (229.6 ) (40.5 ) Meals and entertainment (5.4 ) (3.0 ) (0.9 ) Other, net (10.7 ) 2.0 (0.3 ) Change in federal tax rate — 32.1 — Credits 20.2 7.1 — Effective income tax rate 0.8 % 22.2 % (0.6 )% |
Schedule of Deferred Tax Assets and Liabilities | The principal components of the Company’s deferred tax assets and liabilities were as follows (in thousands): Year Ended December 31, 2018 2017 Deferred tax assets: Deferred revenue $ 1,371 $ 966 Accruals and reserves 475 606 Net operating loss carryforwards 26,566 18,211 Depreciation and amortization 346 317 Equity compensation 1,690 1,024 Credits 397 208 Other 180 270 Total deferred tax assets 31,025 21,602 Deferred tax liabilities: Deferred costs (279 ) (183 ) Intangible assets (1,002 ) (1,002 ) Total deferred tax liabilities (1,281 ) (1,185 ) Total deferred taxes 29,744 20,417 Less deferred tax asset valuation allowance (30,701 ) (21,419 ) Net deferred tax liability $ (957 ) $ (1,002 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2018 2017 2016 Balance, beginning of year $ 327 $ 120 $ 80 Increases (decreases) to tax positions related to prior periods (243 ) 91 — Increases to tax positions related to the current year 5 116 40 Balance, end of year $ 89 $ 327 $ 120 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | The following table contains quarterly financial data for the years ended December 31, 2018 and 2017 (in thousands, except per share data). The unaudited quarterly information has been prepared on a basis consistent with the audited consolidated financial statements and includes all adjustments that the Company considers necessary for a fair presentation of the information shown. The operating results for any fiscal quarter are not necessarily indicative of the operating results for a full fiscal year or any future period and there can be no assurances that any trend reflected in such results will continue in the future. Three Months Ended Dec. 31, 2018 Sept. 30, 2018 Jun. 30, 2018 Mar. 31, 2018 Dec. 31, 2017 Sept. 30, 2017 Jun. 30, 2017 Mar. 31, 2017 Total revenues $ 82,640 $ 78,164 $ 73,392 $ 69,760 $ 66,545 $ 63,118 $ 58,275 $ 54,729 Gross profit 14,205 13,744 12,353 11,064 11,737 11,807 10,351 9,155 Net (loss) income (275 ) 1,205 (377 ) (1,480 ) (838 ) 406 411 (1,482 ) Net (loss) income per share: Basic (0.01 ) 0.04 (0.01 ) (0.05 ) (0.03 ) 0.01 0.01 (0.05 ) Diluted (0.01 ) 0.03 (0.01 ) (0.05 ) (0.03 ) 0.01 0.01 (0.05 ) Weighted-average common shares outstanding: Basic 33,716,975 33,129,416 30,721,037 30,246,585 29,847,574 30,037,282 29,510,907 29,254,681 Diluted 33,716,975 36,385,360 30,721,037 30,246,585 29,847,574 33,113,981 32,734,624 29,254,681 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies Narrative (Details) $ / shares in Units, $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018CAD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018CAD ($) | |
Accounting Policies [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | shares | 2,090,909 | 2,090,909 | |||
Impairment, Amount, License Intangibles | $ 0 | $ 0 | $ 0 | ||
Realized Investment Gains (Losses) | 0 | ||||
Other Nonoperating Income (Expense) | 1,309 | 1,244 | 58 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | 1,000 | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 700 | 100 | 400 | ||
Premiums Recognized from Fronting Agreement | 57,400 | 47,100 | 36,500 | ||
Deferred Policy Acquisition Costs | 1,300 | 1,000 | |||
Advertising Expense | 6,300 | 4,900 | 4,000 | ||
Deferred Revenue from Fronting Agreement | $ 2,100 | $ 1,800 | |||
Concentration Risk, Percentage | 19.00% | 19.00% | 19.00% | ||
Cash Designated for Paying Reinsurance Claims | $ 3,900 | $ 2,800 | |||
Reinsurance Trust Minimum Payment | $ 2 | ||||
Reinsurance Trust Payment Unearned Premium Percentage | 115.00% | 115.00% | |||
Reinsurance Payment of Percentage of Canadian Claims outstanding | 15.00% | 15.00% | |||
Reinsurance Trust Balance | $ 3.5 | ||||
Interest Income, Other | $ 900 | $ 200 | $ 100 | ||
Shares Issued, Price Per Share | $ / shares | $ 33 | ||||
Proceeds from Issuance or Sale of Equity | $ 65,671 | ||||
Proceeds from Rents Received | $ 900 |
Net Loss per Share (Details) Sc
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,621,503 | 4,006,399 | 4,123,023 | 4,871,949 |
Common shares attributable to dilutive effect of warrants | 480,000 | |||
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,621,503 | 4,006,399 | 4,123,023 | |
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Restricted stock, outstanding | 451,160 | 256,842 | 352,996 | |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares attributable to dilutive effect of warrants | 480,000 | 810,000 | 810,000 |
Property Plant and Equipment (D
Property Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 85,504 | $ 20,243 | |
Less: Accumulated depreciation | (15,701) | (12,375) | |
Property and equipment, net | 69,803 | 7,868 | |
Depreciation and amortization expense | 4,300 | 4,200 | $ 3,800 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 15,833 | ||
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 46,561 | ||
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 20,338 | 17,221 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,772 | $ 3,022 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies Deferred Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selling and Marketing Expense [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Supplemental Information for Property, Casualty Insurance Underwriters, Amortization of Deferred Policy Acquisition Costs | $ 2.1 | $ 1.7 | $ 1.4 |
Cost of Sales [Member] | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||
Supplemental Information for Property, Casualty Insurance Underwriters, Amortization of Deferred Policy Acquisition Costs | $ 15.9 | $ 13.2 | $ 10.7 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies Rental Income (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 2,129 |
Operating Leases, Future Minimum Payments, Due in Two Years | 1,224 |
Operating Leases, Future Minimum Payments, Due in Three Years | 1,210 |
Operating Leases, Future Minimum Payments, Due in Four Years | 1,173 |
Operating Leases, Future Minimum Payments, Due in Five Years | 1,210 |
Operating Leases, Future Minimum Payments, Due Thereafter | 3,238 |
Operating Leases, Future Minimum Payments Receivable | $ 10,184 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies Property, Plant, and Equipment, Useful Life (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Software and Software Development Costs [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Software and Software Development Costs [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-Lived License Agreements | $ 4,773 | $ 4,773 | |
Finite-Lived Patents, Gross | 743 | 373 | |
Intangible assets, net | 8,071 | 4,972 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 404 | 174 | |
Intangible Assets, Gross (Excluding Goodwill) | 8,475 | 5,146 | |
Finite-Lived Intangible Asset, Acquired-in-Place Leases | $ 2,959 | 0 | |
Intangible Asset, Useful Life | 5 years 1 month 6 days | ||
Amortization of Intangible Assets | $ 200 | ||
Amortization | 500 | ||
Impairment, Amount, License Intangibles | 0 | 0 | $ 0 |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | 552 | 199 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 191 | 174 | |
Leases, Acquired-in-Place [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | 2,746 | 0 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 213 | $ 0 |
Investment Securities (Details)
Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | $ 3,573 | $ 3,237 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 19 | 0 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 3,554 | 3,237 |
Held-to-maturity securities, amortized cost | 54,559 | 37,590 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 1 |
Held-to-maturity securities, gross unrealized holding losses | (3) | (4) |
Held-to-maturity Securities, Fair Value | 54,556 | 37,587 |
Deposits [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 2,573 | 2,237 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 2,573 | 2,237 |
Municipal bond | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 1,000 | 1,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 19 | 0 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 981 | 1,000 |
U.S. Treasury securities | ||
Investment [Line Items] | ||
Held-to-maturity securities, amortized cost | 6,645 | 5,783 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity securities, gross unrealized holding losses | (3) | (4) |
Held-to-maturity Securities, Fair Value | 6,642 | 5,779 |
Certificates of deposit | ||
Investment [Line Items] | ||
Held-to-maturity securities, amortized cost | 437 | 690 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 1 |
Held-to-maturity securities, gross unrealized holding losses | 0 | 0 |
Held-to-maturity Securities, Fair Value | 437 | 691 |
US government debt securities | ||
Investment [Line Items] | ||
Held-to-maturity securities, amortized cost | 47,477 | 31,117 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity securities, gross unrealized holding losses | 0 | 0 |
Held-to-maturity Securities, Fair Value | $ 47,477 | $ 31,117 |
Investment Securities (Detail_2
Investment Securities (Details) Available-for-Sale - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities, due after one year through five years, amortized cost basis | $ 3,573 | |
Available-for-sale securities, due after one year through five years, fair value | 3,554 | |
Available-for-sale securities, amortized cost | 3,573 | $ 3,237 |
Available-for-sale securities, debt maturities, fair value | $ 3,554 |
Other Investments (Details)
Other Investments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Other Investments [Abstract] | |
Other Commitment | $ 2.2 |
Purchase of Equity Interest | 3 |
Investment Company, Committed Capital | 4 |
Increase (Decrease) in Notes Receivables | 2.5 |
Line of Credit outstanding balance, Variable Interest Entity | 0.6 |
Payments to Acquire Interest in Joint Venture | 0.3 |
Services performed for Variable Interest Entity | $ 0.6 |
Fair Value (Details) Unobservab
Fair Value (Details) Unobservable - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | $ 3,554,000 | $ 3,237,000 |
Assets, Fair Value Disclosure | 9,964,000 | 9,004,000 |
Notes Receivable, Fair Value Disclosure | 3,000,000 | 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 | 5,983,000 | 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 | 981,000 | 1,000,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 3,000,000 | 0 |
Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and Cash Equivalents, Noncurrent | 1,400,000 | 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 and Cash Equivalents, Noncurrent | 1,400,000 | 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 and Cash Equivalents, Noncurrent | 0 | 0 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash and Cash Equivalents, Noncurrent | 0 | 0 |
Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 2,573,000 | 2,237,000 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,010,000 | 5,167,000 |
Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 2,573,000 | 2,237,000 |
Cash and Cash Equivalents, Fair Value Disclosure | 2,010,000 | 5,167,000 |
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 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Deposits [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 0 | 0 |
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 981,000 | 1,000,000 |
Municipal bond | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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 | 981,000 | 1,000,000 |
Municipal bond | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 0 | $ 0 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 3,000,000 | |
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 | 0 | |
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 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 3,000,000 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) Narrative - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
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 | 6.75% | ||
Operating Leases, Rent Expense, Net | $ 1,400 | $ 1,800 | $ 1,200 |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 148 | ||
Capital Leases, Future Minimum Payments Due in Two Years | $ 24 |
Commitment and Contingencies Co
Commitment and Contingencies Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | $ 2,886 |
Other Commitment, Due in Second Year | 325 |
Other Commitment, Due in Third Year | 185 |
Other Commitment, Due in Fourth Year | 168 |
Other Commitment, Due in Fifth Year | 168 |
Other Commitment, Due after Fifth Year | 2,464 |
Other Commitment | 6,196 |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 148 |
Capital Leases, Future Minimum Payments Due in Two Years | 24 |
Capital Leases, Future Minimum Payments Due in Three Years | 24 |
Capital Leases, Future Minimum Payments Due in Four Years | 6 |
Capital Leases, Future Minimum Payments Due in Five Years | 0 |
Capital Leases, Future Minimum Payments Due Thereafter | 0 |
Capital Leases, Future Minimum Payments Due | 202 |
total future commitments due in next twelve months | 3,034 |
total future commitments due in two years | 349 |
total future commitments due in three years | 13,209 |
total future commitments due in four years | 174 |
total future commitments due in five years | 168 |
total future commitments due thereafter | 2,464 |
Total future commitments payments due | 19,398 |
Debt [Member] | |
Other Commitments [Line Items] | |
Other Commitment, Due in Next Twelve Months | 0 |
Other Commitment, Due in Second Year | 0 |
Other Commitment, Due in Third Year | 13,000 |
Other Commitment, Due in Fourth Year | 0 |
Other Commitment, Due in Fifth Year | 0 |
Other Commitment, Due after Fifth Year | 0 |
Other Commitment | $ 13,000 |
Claims Reserve (Details)
Claims Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Subscription business [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Change in Liability for Unpaid Claims and Claims Adjustment Expense, Net | $ 2,800 | ||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 547,317 | ||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 561,191 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 13,875 | ||
Liability for Claims and Claims Adjustment Expense [Abstract] | |||
Claims reserve at beginning of year | 11,059 | $ 8,538 | $ 5,384 |
Current Year Claims and Claims Adjustment Expense | 190,642 | 155,623 | 123,823 |
Prior Year Claims and Claims Adjustment Expense | 409 | (69) | 813 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 177,418 | 144,802 | 115,314 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 10,130 | 7,777 | 5,832 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 187,548 | 152,579 | 121,146 |
Claims expense non-cash | 687 | 454 | 336 |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 191,051 | 155,554 | 124,636 |
Claims reserve at end of year | 13,875 | 11,059 | 8,538 |
Other Segments [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Change in Liability for Unpaid Claims and Claims Adjustment Expense, Net | 500 | ||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 52,717 | ||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 54,904 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,187 | ||
Liability for Claims and Claims Adjustment Expense [Abstract] | |||
Claims reserve at beginning of year | 1,697 | 983 | 890 |
Current Year Claims and Claims Adjustment Expense | 23,784 | 14,739 | 9,027 |
Prior Year Claims and Claims Adjustment Expense | (296) | (171) | (129) |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 21,615 | 13,053 | 8,048 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 1,383 | 801 | 757 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 22,998 | 13,854 | 8,805 |
Claims expense non-cash | 0 | 0 | 0 |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 23,488 | 14,568 | 8,898 |
Claims reserve at end of year | $ 2,187 | $ 1,697 | $ 983 |
Claims Reserve Cumulative claim
Claims Reserve Cumulative claims paid and claims adjustment expenses (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Other Segments [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 54,904 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,187 | |||
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 160,393 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 23,775 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,169 | |||
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 105,171 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 14,417 | $ 14,735 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 12 | |||
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 59,493 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 8,855 | 8,842 | $ 9,027 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4 | |||
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 46,950 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 7,857 | 7,849 | 7,845 | $ 7,973 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2 | |||
Subscription business [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 561,191 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13,875 | |||
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 800,074 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 188,825 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 12,537 | |||
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 715,375 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 154,497 | 154,209 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 995 | |||
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 595,563 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 123,072 | 122,990 | 123,202 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 271 | |||
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Number of Reported Claims | 479,172 | |||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 94,797 | $ 94,749 | $ 94,691 | $ 94,138 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 72 |
Claims Reserve Incurred claims
Claims Reserve Incurred claims and claim adjustment expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Other Segments [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 52,717 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 2,187 | $ 1,697 | $ 983 | $ 890 |
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 21,606 | |||
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 14,405 | 13,050 | ||
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 8,851 | 8,831 | 8,048 | |
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 7,855 | 7,849 | 7,841 | 7,085 |
Subscription business [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 547,317 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 13,875 | 11,059 | 8,538 | 5,384 |
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 176,288 | |||
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 153,502 | 143,958 | ||
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 122,802 | 122,461 | 115,045 | |
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 94,725 | $ 94,621 | $ 94,406 | $ 88,808 |
Debt (Details) Narrative
Debt (Details) Narrative - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Line of credit facility, maximum borrowing capacity | $ 50,000 | $ 30,000 |
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 | 6.75% | |
Maximum Contractual Balance Restriction | $ 4,500 | |
Restricted Cash and Cash Equivalents | 1,400 | $ 600 |
Line of Credit Facility, Current Borrowing Capacity | 36,600 | |
Contractual Balance Restriction | 400 | |
Long-term Line of Credit | 13,000 | |
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 100 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) Narrative - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair Value of Options Vested (in thousands) | $ 2,665 | $ 6,313 | $ 4,645 |
Options outstanding, weighted average remaining contractual term | 5 years 7 months 6 days | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested options, number of shares | 475,368 | ||
Compensation cost not yet recognized | $ 3,100 | ||
Weighted average remaining vesting period | 1 year 10 months 24 days | ||
Restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock, outstanding | 451,160 | 256,842 | 352,996 |
Compensation cost not yet recognized | $ 7,800 | ||
Weighted average remaining vesting period | 2 years 7 months 6 days |
Stock-based Compensation Expens
Stock-based Compensation Expense Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-based Compensation | |||
Total stock-based compensation | $ 4,775 | $ 3,419 | $ 2,946 |
Claims expenses | |||
Stock-based Compensation | |||
Total stock-based compensation | 571 | 355 | 234 |
Other cost of revenue | |||
Stock-based Compensation | |||
Total stock-based compensation | 356 | 239 | 41 |
Sales and marketing | |||
Stock-based Compensation | |||
Total stock-based compensation | 1,335 | 722 | 532 |
Technology and development | |||
Stock-based Compensation | |||
Total stock-based compensation | 209 | 216 | 246 |
General and administrative | |||
Stock-based Compensation | |||
Total stock-based compensation | $ 2,304 | $ 1,887 | $ 1,893 |
Restricted Stock Units (RSUs) [Member] | |||
Stock-based Compensation | |||
Restricted stock, outstanding | 451,160 | 256,842 | 352,996 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7,800 | ||
Share-based Compensation Arrangement , Non-employee, Weighted Average Remaining Vesting Period | 2 years 7 months 6 days |
Stock-based Compensation Valuat
Stock-based Compensation Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions, Expected Term, Maximum | 6 years 3 months | 6 years 3 months |
Share-based Compensation Arrangement by Share-based Payment Fair Value Assumptions, Expected Term, Minimum | 6 years 3 months | 5 years 15 days |
Expected volatility Minimum | 37.10% | 37.60% |
Expected volatility Maximum | 39.80% | 42.10% |
Expected dividends | 0.00% | 0.00% |
Risk-free minimum | 1.80% | 1.10% |
Risk-free maximum | 2.20% | 2.00% |
Stock-based Compensation Option
Stock-based Compensation Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 5 years | |||
Number of Options | ||||
Beginning balance | 4,006,399 | 4,123,023 | 4,871,949 | |
Granted | 0 | 657,339 | 666,664 | |
Exercised | 1,292,037 | 670,823 | 1,119,367 | |
Forfeited | 92,859 | 103,140 | 296,223 | |
Ending Balance | 2,621,503 | 4,006,399 | 4,123,023 | |
Exercisable at December 31, 2018 | 2,146,135 | |||
Weighted Average Exercise Price per Share | ||||
Beginning Balance (usd per share) | $ 7.16 | $ 5.06 | $ 3.71 | |
Granted (usd per share) | 0 | 17.74 | 13.37 | |
Exercised (usd per share) | 2.82 | 3.80 | 3.35 | |
Forfeited (usd per share) | 15.36 | 12.25 | 8.14 | |
Ending Balance (usd per share) | 9.01 | $ 7.16 | $ 5.06 | |
Vested and exercisable at December 31, 2014 (usd per share) | $ 7.46 | |||
Aggregate Intrinsic Value (in thousands) | ||||
Outstanding | $ 43,136 | $ 88,578 | $ 43,185 | $ 29,644 |
Exercised | 36,625 | $ 10,392 | $ 11,980 | |
Exercisable at December 31, 2018 | $ 38,642 |
Stock-based Compensation Opti_2
Stock-based Compensation Options Granted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
WEIGHTED-AVERAGE GRANT DATE FAIR VALUE | $ 0 | $ 7.25 | $ 5.64 |
Fair Value of Options Vested (in thousands) | $ 2,665 | $ 6,313 | $ 4,645 |
Stock-based Compensation Restri
Stock-based Compensation Restricted Stock Awards (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance | 256,842 | 350,631 | 467,508 |
Granted | 375,313 | 23,659 | 0 |
Vested | (149,213) | (116,877) | (116,877) |
Forfeited | (31,782) | (571) | 0 |
Ending balance | 451,160 | 256,842 | 350,631 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance (usd per share) | $ 4.77 | $ 4.77 | $ 4.77 |
Restricted stock awards granted (usd per share) | 28.10 | 30.19 | 0 |
Awards upon which restrictions lapsed (usd per share) | 9.74 | 4.77 | 4.77 |
Restricted stock awards forfeited (usd per share) | 28.57 | 30.19 | 0 |
Ending balance (usd per share) | $ 22.16 | $ 4.77 | $ 4.77 |
Real Estate (Details)
Real Estate (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Real Estate [Abstract] | |
Business Combination, Consideration Transferred | $ 65.2 |
Fair Value Assumptions, Risk Free Interest Rate | 2.50% |
Fair Value Assumptions, Expected Volatility Rate | 36.72% |
Fair Value Assumptions, Expected Term | 1 year 10 months 17 days |
Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Transaction costs related to Building Acquisition | $ 0.6 |
Payments to Acquire Buildings | $ 55 |
Payments to Acquire Buildings, Shares | shares | 303,030 |
Payments to Acquire Buildings, Fair Value of Shares | $ 9.6 |
Intangible Asset, Useful Life | 5 years 1 month 6 days |
Real Estate Purchase Price Allo
Real Estate Purchase Price Allocation, Real Estate (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $ 65,200 |
Building and Building Improvements [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | 46,379 |
Land and Land Improvements [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | 15,833 |
Leases, Acquired-in-Place [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | 2,959 |
Assets, Total [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $ 65,171 |
Real Estate Property, Plant, an
Real Estate Property, Plant, and Equipment, Useful Life (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Land Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 10 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Stockholder's Equity Narrative
Stockholder's Equity Narrative (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock Disclosures [Abstract] | ||
Common Stock, Shares Authorized | 100,000,000 | |
Common Stock, Shares, Outstanding | 34,025,136 | |
Preferred Stock, Shares Authorized | 10,000,000 | |
Redemption of warrants, gross | 330,000 | |
Warrants outstanding | 480,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10 | $ 10 |
Segments (Details) Business Seg
Segments (Details) Business Segment - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 82,640 | $ 78,164 | $ 73,392 | $ 69,760 | $ 66,545 | $ 63,118 | $ 58,275 | $ 54,729 | $ 303,956 | $ 242,667 | $ 188,230 |
Veterinary invoice expense | 58,343 | 54,303,000 | 51,780 | 50,113 | 46,473 | 43,453,000 | 41,009 | 39,187 | 214,539 | 170,122 | 133,534 |
Other cost of revenue | 10,092 | 10,117,000 | 9,259,000 | 8,583 | 8,335 | 7,858,000 | 6,915,000 | 6,387 | 38,051 | 29,495 | 21,408 |
Gross profit | 14,205 | 13,744 | 12,353 | 11,064 | 11,737 | 11,807 | 10,351 | 9,155 | 51,366 | 43,050 | 33,288 |
Technology Services Costs | 9,248 | 9,768 | 9,534 | ||||||||
General and administrative | 18,164 | 16,820 | 15,205 | ||||||||
Sales and marketing | 24,999 | 19,104 | 15,247 | ||||||||
Operating loss | (1,045) | (2,642) | (6,698) | ||||||||
Subscription business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 263,738 | 218,354 | 173,356 | ||||||||
Veterinary invoice expense | 51,183 | 48,285,000 | 46,446 | 45,137 | 41,806 | 39,761,000 | 37,664 | 36,323 | 191,051 | 155,554 | 124,636 |
Other cost of revenue | 6,709 | 6,468,000 | 5,887,000 | 5,877 | 6,024 | 5,454,000 | 4,927,000 | 4,923 | 24,941 | 21,329 | 16,685 |
Gross profit | 47,746 | 41,471 | 32,035 | ||||||||
Sales and marketing | 24,622 | 18,886 | 15,029 | ||||||||
Other business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 40,218 | 24,313 | 14,874 | ||||||||
Veterinary invoice expense | 7,160 | 6,018,000 | 5,334 | 4,976 | 4,667 | 3,692,000 | 3,345 | 2,864 | 23,488 | 14,568 | 8,898 |
Other cost of revenue | $ 3,383 | $ 3,649,000 | $ 3,372,000 | $ 2,706 | $ 2,311 | $ 2,404,000 | $ 1,988,000 | $ 1,464 | 13,110 | 8,166 | 4,723 |
Gross profit | 3,620 | 1,579 | 1,253 | ||||||||
Sales and marketing | $ 377 | $ 218 | $ 218 |
Segments (Details) Revenue by G
Segments (Details) Revenue by Geography - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 82,640 | $ 78,164 | $ 73,392 | $ 69,760 | $ 66,545 | $ 63,118 | $ 58,275 | $ 54,729 | $ 303,956 | $ 242,667 | $ 188,230 |
UNITED STATES | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 246,280 | 195,297 | 151,361 | ||||||||
CANADA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 57,676 | $ 47,370 | $ 36,869 |
Dividend Restrictions Statuto_3
Dividend Restrictions Statutory Surplus (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance [Abstract] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 700 | ||
Proceeds from Dividends Received | 2,200 | $ 2,700 | $ 0 |
Statutory Accounting Practices, Statutory Net Income Amount | 11,021 | 7,507 | 4,081 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 56,244 | $ 37,190 | $ 30,451 |
Statutory Accounting Practices, Statutory Capital and Surplus Required | 53,400 | ||
Deposit Assets | $ 6,700 |
Income Taxes Income before taxe
Income Taxes Income before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (1,054) | $ (1,965) | $ (6,906) |
Foreign | 120 | 34 | 48 |
Loss before income taxes | $ (934) | $ (1,931) | $ (6,858) |
Income Taxes Income tax benefit
Income Taxes Income tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Corporate Tax Rate | 21.00% | ||
U.S. federal & state | $ (10) | $ 183 | $ 25 |
Foreign | 37 | 15 | 13 |
Current income tax expense (benefit) | 27 | 198 | 38 |
Foreign | (2) | (6) | 0 |
Deferred Income Tax Expense (Benefit) | (34) | (626) | 0 |
Income tax (benefit) expense | (7) | (428) | 38 |
Deferred Federal Income Tax Expense (Benefit) | $ (32) | $ (620) | $ 0 |
Income Taxes Tax Rate Reconcili
Income Taxes Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% | 34.00% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, US State Income Taxes, Percent | 4.60% | (9.50%) | (0.60%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Meals and Entertainment, Percent | (5.40%) | (3.00%) | (0.90%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 828.50% | 189.10% | 7.70% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (857.40%) | (229.60%) | (40.50%) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (10.70%) | 2.00% | (0.30%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 32.10% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | 20.20% | 7.10% | 0.00% |
Effective income tax rate | 0.80% | 22.20% | (0.60%) |
Income Taxes Deferred tax asset
Income Taxes Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Operating Loss Carryforwards, Limitations on Use, Value | $ 500 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 34.00% | 34.00% |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Unearned Premiums Reserve | $ 1,371 | $ 966 | |
Deferred tax assets: | |||
Accruals and reserves | 475 | 606 | |
Noncurrent: | |||
Net operating loss carryforwards | 26,566 | 18,211 | |
Depreciation and amortization | 346 | 317 | |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 1,690 | 1,024 | |
Deferred Tax Assets, Tax Credit Carryforwards | 397 | 208 | |
Deferred tax asset, noncurrent, other | 180 | 270 | |
Total deferred tax assets | 31,025 | 21,602 | |
Deferred Tax Liabilities, Gross [Abstract] | |||
Deferred costs | (279) | (183) | |
Intangible assets | (1,002) | (1,002) | |
Total deferred tax liabilities | (1,281) | (1,185) | |
Deferred Tax Assets, Net | 29,744 | 20,417 | |
Less deferred tax asset valuation allowance | (30,701) | (21,419) | |
Net deferred tax liability | $ (957) | $ (1,002) | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 4.60% | (9.50%) | (0.60%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 828.50% | 189.10% | 7.70% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (857.40%) | (229.60%) | (40.50%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Meals and Entertainment, Percent | (5.40%) | (3.00%) | (0.90%) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (10.70%) | 2.00% | (0.30%) |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0.00% | 32.10% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | 20.20% | 7.10% | 0.00% |
Effective income tax rate | 0.80% | 22.20% | (0.60%) |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Operating loss carryforwards | $ 121,100 | ||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2027 | ||
Operating Loss Carryforwards, Limitations on Use, Value | $ 500 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | 327 | $ 120 | $ 80 |
Increases (decreases) to tax positions related to prior periods | (243) | (91) | 0 |
Increases to tax positions related to the current year | 5 | 116 | 40 |
Balance, end of year | $ 89 | $ 327 | $ 120 |
Retirement Plan Details (Detail
Retirement Plan Details (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 | $ 0 |
Quarterly Financial Informati_3
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | $ 82,640 | $ 78,164 | $ 73,392 | $ 69,760 | $ 66,545 | $ 63,118 | $ 58,275 | $ 54,729 | $ 303,956 | $ 242,667 | $ 188,230 |
Gross profit | 14,205 | 13,744 | 12,353 | 11,064 | 11,737 | 11,807 | 10,351 | 9,155 | 51,366 | 43,050 | 33,288 |
Net loss | $ (275) | $ 1,205 | $ (377) | $ (1,480) | $ (838) | $ 406 | $ 411 | $ (1,482) | $ (927) | $ (1,503) | $ (6,896) |
Net loss per share: Basic and diluted (per share) | $ (0.01) | $ (0.01) | $ (0.05) | $ (0.03) | $ 0.01 | $ 0.01 | $ (0.05) | $ (0.03) | $ (0.05) | $ (0.24) | |
Earnings Per Share, Diluted | $ 0.03 | ||||||||||
Earnings Per Share, Basic | $ 0.04 | ||||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 33,716,975 | 30,246,585 | 29,847,574 | 29,254,681 | 31,961,192 | 29,588,324 | 28,527,602 | ||||
Weighted Average Number of Shares Outstanding, Basic | 33,129,416 | 30,721,037 | 30,037,282 | 29,510,907 | |||||||
Weighted Average Number of Shares Outstanding, Diluted | 36,385,360 | 30,721,037 | 33,113,981 | 32,734,624 | |||||||
Claims Expense | $ 58,343 | $ 54,303,000 | $ 51,780 | $ 50,113 | $ 46,473 | $ 43,453,000 | $ 41,009 | $ 39,187 | $ 214,539 | $ 170,122 | $ 133,534 |
Other Cost of Services | 10,092 | 10,117,000 | 9,259,000 | 8,583 | 8,335 | 7,858,000 | 6,915,000 | 6,387 | 38,051 | 29,495 | 21,408 |
Other Segments [Member] | |||||||||||
Revenue | 40,218 | 24,313 | 14,874 | ||||||||
Gross profit | 3,620 | 1,579 | 1,253 | ||||||||
Claims Expense | 7,160 | 6,018,000 | 5,334 | 4,976 | 4,667 | 3,692,000 | 3,345 | 2,864 | 23,488 | 14,568 | 8,898 |
Other Cost of Services | 3,383 | 3,649,000 | 3,372,000 | 2,706 | 2,311 | 2,404,000 | 1,988,000 | 1,464 | 13,110 | 8,166 | 4,723 |
Subscription business [Member] | |||||||||||
Revenue | 263,738 | 218,354 | 173,356 | ||||||||
Gross profit | 47,746 | 41,471 | 32,035 | ||||||||
Claims Expense | 51,183 | 48,285,000 | 46,446 | 45,137 | 41,806 | 39,761,000 | 37,664 | 36,323 | 191,051 | 155,554 | 124,636 |
Other Cost of Services | $ 6,709 | $ 6,468,000 | $ 5,887,000 | $ 5,877 | $ 6,024 | $ 5,454,000 | $ 4,927,000 | $ 4,923 | $ 24,941 | $ 21,329 | $ 16,685 |
Schedule 1-Parent Only Disclo_2
Schedule 1-Parent Only Disclosures [Schedule] Condensed Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Technology Services Costs | $ 9,248 | $ 9,768 | $ 9,534 |
General and administrative | 18,164 | 16,820 | 15,205 |
Sales and marketing | 24,999 | 19,104 | 15,247 |
Operating loss | (1,045) | (2,642) | (6,698) |
Interest expense | 1,198 | 533 | 218 |
Other income, net | (1,309) | (1,244) | (58) |
Income Tax (Benefit) Expense, Attributable to Parent | 4,042 | 5,302 | 0 |
Other comprehensive income (loss), net of taxes | (661) | 285 | 125 |
Comprehensive loss | (1,588) | (1,218) | (6,771) |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash Equivalents, at Carrying Value | 2,133 | 1,105 | |
Veterinary invoice expense | 571 | 354 | 269 |
Other costs of revenue | 357 | 239 | 41 |
Technology Services Costs | 512 | 528 | 531 |
General and administrative | 4,879 | 4,204 | 3,627 |
Sales and marketing | 1,355 | 889 | 871 |
Total expenses | 7,674 | 6,214 | 5,339 |
Operating loss | (7,674) | (6,214) | (5,339) |
Interest expense | 1,184 | 529 | 218 |
Other income, net | 2,557 | 4,101 | (23) |
Loss before equity in undistributed earnings of subsidiaries | (6,301) | (2,642) | (5,580) |
Equity in undistributed earnings of subsidiaries | (1,332) | 4,163 | 1,316 |
Net loss | (927) | (1,503) | (6,896) |
Other comprehensive income (loss) of subsidiaries | (661) | 285 | 125 |
Other comprehensive income (loss), net of taxes | (661) | 285 | 125 |
Comprehensive loss | (1,588) | (1,218) | $ (6,771) |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 125,475 | $ 47,209 |
Schedule 1-Parent Only Disclo_3
Schedule 1-Parent Only Disclosures [Schedule] Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||||
Accounts and other receivables | $ 31,565 | $ 20,367 | ||
Prepaid expenses and other assets | 5,300 | 2,895 | ||
Total current assets | 117,976 | 86,558 | ||
Restricted Cash and Cash Equivalents | 1,400 | 600 | ||
Property and equipment, net | 69,803 | 7,868 | ||
Intangible assets, net | 8,071 | 4,972 | ||
Other Assets, Noncurrent | 6,706 | 2,624 | ||
Total assets | 207,510 | 105,859 | ||
Accrued Liabilities, Current | 11,347 | 7,660 | ||
Total current liabilities | 63,203 | 45,866 | ||
Long-term Debt, Excluding Current Maturities | 12,862 | 9,324 | ||
Deferred tax liabilities | 1,002 | 1,002 | ||
Other liabilities | 1,270 | 1,233 | ||
Total liabilities | 78,337 | 57,425 | ||
Common Stock, Value, Outstanding | 0 | 0 | ||
Preferred Stock, Value, Outstanding | 0 | 0 | ||
Additional Paid-in Capital | 219,838 | 134,511 | ||
Accumulated other comprehensive loss | (753) | (92) | ||
Accumulated deficit | (83,711) | (82,784) | ||
Treasury stock, at cost | (6,201) | (3,201) | ||
Total stockholders' deficit | 129,173 | 48,434 | $ 44,715 | $ 45,356 |
Liabilities and Equity | 207,510 | 105,859 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash Equivalents, at Carrying Value | 2,133 | 1,105 | ||
Accounts and other receivables | 2,094 | 2,261 | ||
Prepaid expenses and other assets | 661 | 295 | ||
Total current assets | 4,888 | 3,661 | ||
Restricted Cash and Cash Equivalents | 1,400 | 600 | ||
Property and equipment, net | 568 | 661 | ||
Intangible assets, net | 5,076 | 4,795 | ||
Other Assets, Noncurrent | 6,515 | 2,488 | ||
Advances to subsidiaries | 125,475 | 47,209 | ||
Total assets | 143,922 | 59,414 | ||
Accounts Payable and Accrued Liabilities, Current | 885 | 654 | ||
Total current liabilities | 885 | 654 | ||
Long-term Debt, Excluding Current Maturities | 12,862 | 9,324 | ||
Deferred tax liabilities | 1,002 | 1,002 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 14,749 | 10,980 | ||
Common Stock, Value, Outstanding | 0 | 0 | ||
Preferred Stock, Value, Outstanding | 0 | 0 | ||
Additional Paid-in Capital | 219,838 | 134,511 | ||
Accumulated other comprehensive loss | (753) | (92) | ||
Accumulated deficit | (83,711) | (82,784) | ||
Treasury stock, at cost | (6,201) | (3,201) | ||
Total stockholders' deficit | 129,173 | 48,434 | ||
Liabilities and Equity | $ 143,922 | $ 59,414 |
Schedule 1-Parent Only Disclo_4
Schedule 1-Parent Only Disclosures [Schedule] Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, and Restricted Cash, Carrying Value, End of Period | $ 27,952 | $ 26,306 | $ 24,237 | |
Cash, Cash Equivalents, and Restricted Cash, Carrying Value | 26,306 | 24,237 | $ 17,956 | |
Proceeds from Dividends Received | 2,200 | 2,700 | 0 | |
Equity Method Investment, Realized Gain (Loss) on Disposal | 1,000 | |||
Warrant expense | 0 | (1,036) | 0 | |
Stock-based compensation expense | 4,775 | 3,419 | 2,946 | |
Other Operating Income (Expense), Net | (240) | (383) | 104 | |
Net cash provided by operating activities | 12,680 | 9,666 | 5,006 | |
Proceeds from Sale of Equity Method Investments | 0 | 1,402 | ||
Purchases of property and equipment | (56,936) | (3,131) | (1,941) | |
Proceeds from (Payments for) Other Financing Activities | 365 | (694) | (399) | |
Payments for (Proceeds from) Investments | 3,000 | 0 | 0 | |
Net cash used in investing activities | (81,451) | (13,056) | (6,508) | |
Proceeds from Issuance or Sale of Equity | 65,671 | |||
Payments Related to Tax Withholding for Share-based Compensation | (1,839) | (1,170) | (662) | |
Proceeds from exercise of stock options | 3,601 | 2,545 | 3,745 | |
Proceeds from debt financing, net of financing fees | 13,431 | 4,400 | 4,988 | |
Repayments of Long-term Debt | (10,000) | 0 | 0 | |
Net cash provided by financing activities | 71,229 | 5,081 | 7,672 | |
Effect of Exchange Rate on Cash and Cash Equivalents | (812) | 378 | 111 | |
Net change in cash, cash equivalents, and restricted cash | 1,646 | 2,069 | 6,281 | |
Cash, cash equivalents, and restricted cash at beginning of period | 25,706 | |||
Cash, cash equivalents, and restricted cash at end of period | 26,552 | 25,706 | ||
Interest paid | (1,019) | (333) | (153) | |
Capital Lease Obligations Incurred | 0 | 689 | 559 | |
Redemption of Warrants Non-Cash; Common Stock | 3,000 | 600 | ||
Acquisition of Corporate Real Estate Non-Cash, Common Stock | 9,640 | |||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash, Cash Equivalents, and Restricted Cash, Carrying Value, End of Period | 3,533 | 1,705 | 4,001 | |
Cash, Cash Equivalents, and Restricted Cash, Carrying Value | 1,705 | 4,001 | 6,040 | |
Net loss | (927) | (1,503) | (6,896) | |
Loss attributable to equity method investments | (1,332) | 4,163 | 1,316 | |
Depreciation and amortization | 436 | 697 | 251 | |
Equity Method Investment, Realized Gain (Loss) on Disposal | 0 | (1,036) | 0 | |
Stock-based compensation expense | 4,775 | 3,419 | 2,946 | |
Other Operating Income (Expense), Net | 108 | (380) | 58 | |
Increase (Decrease) in Operating Assets | (97) | 743 | 1,742 | |
Net cash provided by operating activities | 2,963 | 6,103 | (583) | |
Proceeds from Sale of Equity Method Investments | 0 | 1,402 | 0 | |
Purchases of property and equipment | (164) | (135) | 1 | |
Payments to Acquire Interest in Subsidiaries and Affiliates | (67,884) | (12,168) | (9,333) | |
Proceeds from (Payments for) Other Financing Activities | (4,237) | (2,668) | 0 | |
Net cash used in investing activities | (72,285) | (13,570) | (9,332) | |
Proceeds from Issuance or Sale of Equity | 65,671 | 0 | 0 | |
Payments Related to Tax Withholding for Share-based Compensation | (1,839) | (1,170) | (662) | |
Proceeds from exercise of stock options | 3,601 | 2,545 | 3,745 | |
Proceeds from debt financing, net of financing fees | 13,430 | 4,400 | 4,988 | |
Repayments of Long-term Debt | (10,000) | 0 | 0 | |
Other financing costs | 287 | (604) | (195) | |
Net cash provided by financing activities | 71,150 | 5,170 | 7,876 | |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | 0 | |
Net change in cash, cash equivalents, and restricted cash | 1,828 | (2,297) | (2,039) | |
Interest paid | 1,007 | 333 | 153 | |
Capital Lease Obligations Incurred | 0 | 471 | 0 | |
Redemption of Warrants Non-Cash; Common Stock | 3,000 | 0 | 600 | |
Acquisition of Corporate Real Estate Non-Cash, Common Stock | $ 9,640 | $ 0 | $ 0 |