Cover Page Document
Cover Page Document - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 28, 2021 | |
Cover Page [Abstract] | ||
Entity Central Index Key | 0001371285 | |
Entity Common Stock, Shares Outstanding | 40,368,077 | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Title of 12(b) Security | Common stock, $0.00001 par value per share | |
City Area Code | (855) | |
Entity Address, Address Line One | 6100 4th Avenue S, Suite 200 | |
Entity Address, City or Town | Seattle, | |
Entity Incorporation, State or Country Code | DE | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity File Number | 001-36537 | |
Entity Tax Identification Number | 83-0480694 | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98108 | |
Local Phone Number | 727 - 9079 | |
Trading Symbol | TRUP | |
Security Exchange Name | NASDAQ | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Registrant Name | TRUPANION, INC. |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 181,667,000 | $ 130,120,000 | $ 504,612,000 | $ 359,341,000 |
Cost of Revenue [Abstract] | ||||
Veterinary invoice expense(1) | 125,058,000 | 91,266,000 | 353,210,000 | 252,955,000 |
Other Cost of Services Sold | 28,443,000 | 18,265,000 | 77,591,000 | 48,078,000 |
Cost of Revenue | 153,501,000 | 109,531,000 | 430,801,000 | 301,033,000 |
Operating Expenses [Abstract] | ||||
Technology and Development Expense | 4,391,000 | 2,426,000 | 12,201,000 | 6,839,000 |
General and Administrative Expense | 8,246,000 | 5,412,000 | 22,897,000 | 15,345,000 |
Selling and Marketing Expense | 19,708,000 | 13,344,000 | 58,802,000 | 33,028,000 |
Depreciation and Amortization | 2,944,000 | 1,666,000 | 9,195,000 | 4,770,000 |
Operating Expenses | 35,289,000 | 22,848,000 | 103,095,000 | 59,982,000 |
Income (Loss) from Equity Method Investments | (69,000) | 2,000 | (149,000) | (84,000) |
Operating loss | (7,192,000) | (2,257,000) | (29,433,000) | (1,758,000) |
Interest expense | 0 | 324,000 | 1,000 | 1,044,000 |
Other income, net | (61,000) | (49,000) | (222,000) | (533,000) |
Income (Loss) before income taxes | (7,131,000) | (2,532,000) | (29,212,000) | (2,269,000) |
Income tax expense (benefit) | (312,000) | 26,000 | (724,000) | 69,000 |
Net loss | $ (6,819,000) | $ (2,558,000) | $ (28,488,000) | $ (2,338,000) |
Net income (loss) per share [Abstract] | ||||
Earnings Per Share, Basic and Diluted | $ (0.17) | $ (0.07) | $ (0.71) | $ (0.07) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 40,283,818 | 35,426,742 | 40,044,518 | 35,193,317 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (6,819) | $ (2,558) | $ (28,488) | $ (2,338) |
Foreign currency translation adjustments | (1,800) | 199 | (808) | (141) |
Net unrealized gain (loss) on available-for-sale debt securities | (2) | 0 | (2) | 1 |
Other comprehensive income (loss), net of taxes | (1,802) | 199 | (810) | (140) |
Comprehensive Income (Loss) | $ (8,621) | $ (2,359) | $ (29,298) | $ (2,478) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 109,641 | $ 139,878 |
Short-term Investments | 111,885 | 89,862 |
Accounts and other receivables | 157,945 | 99,065 |
Prepaid expenses and other assets | 11,077 | 8,222 |
Total current assets | 390,548 | 337,027 |
Restricted Cash and Cash Equivalents | 6,324 | 6,319 |
Long-Term Investments, at fair value | 6,605 | 5,566 |
Property and equipment, net | 75,432 | 72,602 |
Intangible assets, net | 23,530 | 27,134 |
Other Long-Term Assets | 15,688 | 16,557 |
Goodwill | 32,583 | 33,045 |
Total assets | 550,710 | 498,250 |
Liabilities and Equity [Abstract] | ||
Accounts payable | 6,482 | 6,059 |
Accrued liabilities and other current liabilities | 25,865 | 22,864 |
Reserve for veterinary invoices | 38,750 | 28,929 |
Deferred Revenue | 140,125 | 92,547 |
Total current liabilities | 211,222 | 150,399 |
Deferred Income Tax Liabilities, Net | 3,803 | 4,705 |
Other liabilities | 3,712 | 3,207 |
Total liabilities | 218,737 | 158,311 |
Common stock | 0 | 0 |
Preferred Stock | 0 | 0 |
Additional paid-in capital | 460,339 | 439,007 |
Accumulated other comprehensive loss | 2,261 | 3,071 |
Accumulated deficit | (119,848) | (91,360) |
Treasury stock, at cost | (10,779) | (10,779) |
Stockholders' Equity Attributable to Parent | 331,973 | 339,939 |
Total liabilities and stockholders' equity | $ 550,710 | $ 498,250 |
Consolidated Balance Sheet Cond
Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
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 | 41,296,940 | 40,383,972 |
Common Stock, Shares, Outstanding | 40,363,775 | 39,450,807 |
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, Shares | 933,165 | 933,165 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 34,947,017 | |||||
Beginning balance at Dec. 31, 2019 | $ 136,760,000 | $ 0 | $ 232,731,000 | $ (85,520,000) | $ 250,000 | $ (10,701,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings (in shares) | 634,823 | |||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings | 3,606,000 | 3,606,000 | ||||
Stock-based compensation expense | 6,488,000 | 6,488,000 | ||||
Repurchase of common stock (in shares) | (3,300) | |||||
Repurchase of common stock | (78,000) | (78,000) | ||||
Other comprehensive income (loss) | (140,000) | (140,000) | ||||
Net income (loss) | (2,338,000) | (2,338,000) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 35,578,540 | |||||
Ending balance at Sep. 30, 2020 | 144,298,000 | $ 0 | 242,825,000 | (87,858,000) | 110,000 | (10,779,000) |
Beginning balance (in shares) at Jun. 30, 2020 | 35,246,292 | |||||
Beginning balance at Jun. 30, 2020 | 141,909,000 | $ 0 | 238,077,000 | (85,300,000) | (89,000) | (10,779,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings (in shares) | 332,248 | |||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings | 2,260,000 | 2,260,000 | ||||
Stock-based compensation expense | 2,488,000 | 2,488,000 | ||||
Other comprehensive income (loss) | 199,000 | 199,000 | ||||
Net income (loss) | (2,558,000) | (2,558,000) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 35,578,540 | |||||
Ending balance at Sep. 30, 2020 | $ 144,298,000 | $ 0 | 242,825,000 | (87,858,000) | 110,000 | (10,779,000) |
Beginning balance (in shares) at Dec. 31, 2020 | 39,450,807 | 39,450,807 | ||||
Beginning balance at Dec. 31, 2020 | $ 339,939,000 | $ 0 | 439,007,000 | (91,360,000) | 3,071,000 | (10,779,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings (in shares) | 912,968 | |||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings | (549,000) | (549,000) | ||||
Stock-based compensation expense | 21,881,000 | 21,881,000 | ||||
Other comprehensive income (loss) | (810,000) | (810,000) | ||||
Net income (loss) | $ (28,488,000) | (28,488,000) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 40,363,775 | 40,363,775 | ||||
Ending balance at Sep. 30, 2021 | $ 331,973,000 | $ 0 | 460,339,000 | (119,848,000) | 2,261,000 | (10,779,000) |
Beginning balance (in shares) at Jun. 30, 2021 | 40,231,055 | |||||
Beginning balance at Jun. 30, 2021 | 334,205,000 | $ 0 | 453,950,000 | (113,029,000) | 4,063,000 | (10,779,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings (in shares) | 132,720 | |||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings | (224,000) | (224,000) | ||||
Stock-based compensation expense | 6,613,000 | 6,613,000 | ||||
Other comprehensive income (loss) | (1,802,000) | (1,802,000) | ||||
Net income (loss) | $ (6,819,000) | (6,819,000) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 40,363,775 | 40,363,775 | ||||
Ending balance at Sep. 30, 2021 | $ 331,973,000 | $ 0 | $ 460,339,000 | $ (119,848,000) | $ 2,261,000 | $ (10,779,000) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ (28,488,000) | $ (2,338,000) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and Amortization | 9,195,000 | 4,770,000 |
Stock-based compensation expense | 21,418,000 | 6,310,000 |
Other, Net | (931,000) | 118,000 |
Increase (Decrease) in Operating Assets [Abstract] | ||
Accounts and other receivables | (58,773,000) | (38,068,000) |
Prepaid expenses and other assets | (1,922,000) | (1,979,000) |
Accounts Payable, Accrued Liabilities, and Other Liabilities | 4,353,000 | 6,602,000 |
Claims Reserve | 9,854,000 | 7,692,000 |
Deferred revenue | 47,596,000 | 34,473,000 |
Net cash provided by operating activities | 2,302,000 | 17,580,000 |
Net Cash Provided by Investing Activities [Abstract] | ||
Payments to Acquire Held-to-maturity Securities | (62,288,000) | (43,972,000) |
Maturities of Investment Securities | 39,066,000 | 29,817,000 |
Purchases of property and equipment | (8,537,000) | (4,512,000) |
Payments for (Proceeds from) Other Investing Activities | (48,000) | 88,000 |
Net cash used in investing activities | (31,807,000) | (18,579,000) |
Net Cash Provided by Financing Activities [Abstract] | ||
Proceeds from exercise of stock options | 3,056,000 | 4,296,000 |
Payments Related to Tax Withholding for Share-based Compensation | (3,730,000) | (656,000) |
Proceeds from Debt Financing | 0 | 6,213,000 |
Repayments of Long-term Debt | 0 | (2,500,000) |
Proceeds from (Payments for) Other Financing Activities | 0 | (78,000) |
Net cash provided by financing activities | (674,000) | 7,275,000 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | (53,000) | (214,000) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (30,232,000) | 6,062,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 146,197,000 | 30,568,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 115,965,000 | 36,630,000 |
Supplemental Cash Flow Information [Abstract] | ||
Purchases of property and equipment included in accounts payable and accrued liabilities | $ 537,000 | $ 613,000 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Significant Accounting Policies Description of Business and Basis of Presentation Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada, Puerto Rico, and Australia. The Company's data-driven, vertically-integrated approach enables the Company to provide pet owners with products that the Company believes are the highest value medical insurance, priced specifically for each pet’s unique characteristics. The financial data as of December 31, 2020 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), stockholders' equity and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 12, 2021 (the 2020 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2020 10-K. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2020 10-K for additional discussion of these estimates and assumptions. Reclassifications |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Earnings Per Share [Text Block] | Net Income (Loss) per Share Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated using the weighted average number of shares of common stock plus, when dilutive, potential shares of common stock outstanding using the treasury-stock method. Potential shares of common stock 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 share of common stock calculation because they would have had an antidilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options 843,452 1,647,052 843,452 1,647,052 Restricted stock awards and restricted stock units 1,138,709 765,825 1,138,709 765,825 |
Investment Securities (Notes)
Investment Securities (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Investment | Investments The amortized cost, gross unrealized holding gains and losses, and estimates of fair value of long-term and short-term investments by major security type and class of security were as follows as of September 30, 2021 and December 31, 2020 (in thousands): Amortized Gross Gross Fair As of September 30, 2021 Long-term investments: Foreign deposits $ 5,605 $ — $ — $ 5,605 Municipal bond 1,000 — — 1,000 $ 6,605 $ — $ — $ 6,605 Short-term investments: U.S. Treasury securities $ 8,677 $ — $ (1) $ 8,676 Certificates of deposit 3,288 — — 3,288 U.S. government funds 99,920 — — 99,920 $ 111,885 $ — $ (1) $ 111,884 Amortized Gross Gross Fair As of December 31, 2020 Long-term investments: Foreign deposits $ 4,564 $ — $ — $ 4,564 Municipal bond 1,000 2 — 1,002 $ 5,564 $ 2 $ — $ 5,566 Short-term investments: U.S. Treasury securities $ 6,494 $ — $ (2) $ 6,492 Certificates of deposit 1,696 — — 1,696 U.S. government funds 81,672 — — 81,672 $ 89,862 $ — $ (2) $ 89,860 Maturities of debt securities classified as available-for-sale were as follows (in thousands): As of September 30, 2021 Amortized Fair Available-for-sale: Due after one year through five years $ 6,605 $ 6,605 $ 6,605 $ 6,605 The Company does not expect any credit losses from its held-to-maturity investments, considering the composition of the investment portfolio and the credit loss history of these investments. For available-for-sale debt securities, the Company determined that the unrealized losses were immaterial and due to non-credit factors. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell, the securities prior to maturity or prior to the recovery of the amortized cost basis. |
Other Investments (Notes)
Other Investments (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Investments and Other Noncurrent Assets [Text Block] | Other Investments Investment in Variable Interest Entity The Company has invested $7.0 million in preferred stock of Baystride, Inc., a privately held corporation operating in the pet food industry. 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 has the option to purchase all of the outstanding common shares issued by the variable interest entity in 2023 at an amount approximating its expected fair value. The preferred stock investment in the variable interest entity is accounted for as an available-for-sale debt security and measured at fair value at each balance sheet date. Additionally, the Company has extended a $2.5 million revolving line of credit to the variable interest entity to fund its inventory purchases. The Company's investment and amounts loaned under the line of credit are recorded in other long-term assets on its consolidated balance sheet. The outstanding loan balance under the line of credit was $2.5 million as of September 30, 2021 and December 31, 2020. The Company has also entered into a series of agreements to provide ancillary services to, and receive reimbursement from, the variable interest entity at cost. The Company provided $0.6 million and $1.0 million of these services for the nine months ended September 30, 2021 and 2020, respectively. Investment in Joint Venture |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Investments The following tables summarize, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands): As of September 30, 2021 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 6,324 $ 6,324 $ — $ — Money market funds 71,754 71,754 — — Fixed maturities: Foreign deposits 5,605 5,605 — — Municipal bond 1,000 — 1,000 — Investment in variable interest entity 7,949 — — 7,949 Total $ 92,632 $ 83,683 $ 1,000 $ 7,949 As of December 31, 2020 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 6,319 $ 6,319 $ — $ — Money market funds 99,054 99,054 — — Fixed maturities: Foreign deposits 4,564 4,564 — — Municipal bond 1,002 — 1,002 — Investment in variable interest entity 7,949 — — 7,949 Total $ 118,888 $ 109,937 $ 1,002 $ 7,949 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. Short-term investments are carried at amortized cost, and the fair value and changes in unrealized gains (losses) are disclosed in Note 3, 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. The Company's preferred stock investment in the variable interest entity (see Note 4) is accounted for as an available-for-sale debt security and measured at fair value at each balance sheet date. The estimated fair value of the preferred stock investment is a Level 3 measurement and is based on certain unobservable inputs such as the value of the underlying enterprise, volatility, time to liquidity, and market interest rates. An increase or decrease in any of these unobservable inputs would result in a change in the fair value measurement. Estimated fair value was $7.9 million as of September 30, 2021, unchanged from December 31, 2020, recorded in other long-term assets on the Company's consolidated balance sheet. Fair Value Disclosures The Company's other long-term assets balance included notes receivable of $6.0 million and $6.1 million as of September 30, 2021 and December 31, 2020, 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. There was no significant activity in Level 3 of the hierarchy during the nine months ended September 30, 2021. The Company recognizes transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers between levels for the nine months ended September 30, 2021 and the year ended December 31, 2020. |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Certain state 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. In addition, from time to time the Company is or may become subject to various legal proceedings arising in the ordinary course of business, including proceedings against members, other entities or regulatory bodies. Estimated liabilities are recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. At this time, the Company does not believe any such matters to be material individually or in the aggregate. These views are subject to change following the outcome of future events or the results of future developments. |
Claims Reserve
Claims Reserve | 9 Months Ended |
Sep. 30, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Disclosure [Text Block] | Reserve for Veterinary InvoicesThe reserve for veterinary invoices is an estimate of the future amount the Company will pay for veterinary invoices that are dated as of, or prior to, its balance sheet date. The reserve also includes the Company's estimate of related internal processing costs. The reserve estimate involves actuarial projections, and is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated patterns. The Company uses generally accepted actuarial methodologies, such as paid loss development methods, in estimating the amount of the reserve for veterinary invoices. The reserve is made for each of the Company's segments, subscription and other business, and is 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): Nine Months Ended September 30, Subscription 2021 2020 Reserve at beginning of year $ 19,925 $ 15,541 Veterinary invoices during the period related to: Current year 262,721 202,734 Prior years (1,116) 356 Total veterinary invoice expense 261,605 203,090 Amounts paid during the period related to: Current year 240,488 185,828 Prior years 15,412 12,849 Total paid 255,900 198,677 Non-cash expenses 3,830 903 Reserve at end of period $ 21,800 $ 19,051 The Company's reserve for the subscription business segment increased from $19.9 million at December 31, 2020 to $21.8 million at September 30, 2021. This change was comprised of $261.6 million in expense recorded during the period less $255.9 million in payments of veterinary invoices. The $261.6 million in veterinary invoice expense incurred included a reduction of $1.1 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. For the nine months ended September 30, 2020, the Company increased prior year reserves by $0.4 million as a result of analysis of payment trends. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Nine Months Ended September 30, Other Business 2021 2020 Reserve at beginning of year $ 9,004 $ 5,653 Veterinary invoices during the period related to: Current year 91,912 50,062 Prior years (307) (197) Total veterinary invoice expense 91,605 49,865 Amounts paid during the period related to: Current year 75,062 40,406 Prior years 8,597 5,324 Total paid 83,659 45,730 Non-cash expenses — — Reserve at end of period $ 16,950 $ 9,788 The Company’s reserve for the other business segment increased from $9.0 million at December 31, 2020 to $17.0 million at September 30, 2021. This change was comprised of $91.6 million in expense recorded during the period less $83.7 million in payments of veterinary invoices. The $91.6 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. For the nine months ended September 30, 2020, the Company decreased prior year reserves by $0.2 million as a result of analysis of payment trends. Reserve for veterinary invoices, by year of occurrence In the following tables, the reserve for veterinary invoices for each segment is presented as the amount (in thousands) by the year to which the veterinary invoice relates, referred to as the year of occurrence. Subscription As of September 30, 2021 Year of Occurrence 2019 and prior $ 1,116 2020 2,281 2021 18,403 $ 21,800 Other Business As of September 30, 2021 Year of Occurrence 2019 and prior $ — 2020 100 2021 16,850 $ 16,950 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation Stock-based compensation expense includes stock options and restricted stock units granted to employees and other service providers and has been reported in the Company’s consolidated statements of operations depending on the function performed by the employee or other service provider. Stock-based compensation expense recognized in each category of the consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Veterinary invoice expense $ 769 $ 337 $ 3,740 $ 760 Other cost of revenue 542 111 2,029 300 Technology and development 749 133 2,213 366 General and administrative 2,271 1,108 6,412 2,912 Sales and marketing 2,112 741 7,024 1,972 Total expensed stock-based compensation 6,443 2,430 21,418 6,310 Capitalized stock-based compensation 170 58 463 178 Total stock-based compensation $ 6,613 $ 2,488 $ 21,881 $ 6,488 As of September 30, 2021, the Company had 1,138,709 unvested restricted stock units that are expected to vest. Stock-based compensation expenses of $73.8 million related to unvested restricted stock units are expected to be recognized over a weighted average period of approximately 2.9 years. Stock Options A summary of the Company's stock option activity is as follows: Number of Options Weighted Average Exercise Price per Share Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2020 1,459,290 $ 9.93 $ 160,200 Granted — — — Exercised (612,475) 5.19 54,329 Forfeited (3,363) 13.08 — Outstanding as of September 30, 2021 843,452 13.36 54,245 Exercisable as of September 30, 2021 843,452 $ 13.36 $ 54,245 As of September 30, 2021, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.5 years. Restricted Stock Units A summary of the Company’s restricted stock unit activity is as follows: Number of Weighted Average Unvested shares as of December 31, 2020 782,755 $ 34.81 Granted 742,736 99.79 Vested (341,991) 38.67 Forfeited (44,791) 71.54 Unvested shares as of September 30, 2021 1,138,709 $ 74.59 |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity Common Stock and Preferred Stock As of September 30, 2021, the Company had 100,000,000 shares of common stock authorized and 40,363,775 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 September 30, 2021, the Company had 10,000,000 shares of undesignated 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 (the Board), whenever funds are legally available. These rights are subordinate to the dividend rights of holders of any senior classes of stock outstanding at the time. The Company does not intend to declare or pay any cash dividends in the foreseeable future. Share Repurchase Program In April 2021, the Board approved a share repurchase program, pursuant to which the Company may, between May 2021 and May 2026, repurchase outstanding shares of the Company’s common stock. The Company has not repurchased any shares under this program. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segments The Company has two reporting segments: subscription business and other business. The subscription business segment generates revenue primarily from subscription fees related to the Company's "Trupanion" branded products, while the other business segment is comprised of revenue from other product offerings that generally have a business-to-business relationship and a different margin profile than our subscription segment, including revenue from writing policies on behalf of third parties and revenue from other products and software solutions. The chief operating decision maker reviews revenue and operating income (loss) to evaluate segment performance. Revenue, veterinary invoice expense, other cost of revenue, and sales and marketing expenses are generally directly attributed to each segment. Other operating expenses, such as technology and development expense, general and administrative expense, and depreciation and amortization, are allocated proportionately based on revenue in each segment. 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. Operating income (loss) of the Company’s segments were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Subscription business: Revenue $ 127,077 $ 99,379 $ 360,742 $ 281,316 Veterinary invoice expense 90,626 71,872 261,605 203,090 Other cost of revenue 13,128 9,226 37,432 26,024 Technology and development 3,072 1,853 8,723 5,355 General and administrative 5,768 4,133 16,372 12,017 Sales and marketing 19,574 13,079 58,378 32,409 Depreciation and amortization 2,059 1,273 6,583 3,735 Subscription business operating loss (7,150) (2,057) (28,351) (1,314) Other business: Revenue 54,590 30,741 143,870 78,025 Veterinary invoice expense 34,432 19,394 91,605 49,865 Other cost of revenue 15,315 9,039 40,159 22,054 Technology and development 1,319 573 3,478 1,484 General and administrative 2,478 1,279 6,525 3,328 Sales and marketing 134 265 424 619 Depreciation and amortization 885 393 2,612 1,035 Other business operating income (loss) 27 (202) (933) (360) Gain (loss) from investment in joint venture (69) 2 (149) (84) Total operating loss $ (7,192) $ (2,257) $ (29,433) $ (1,758) The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 151,457 $ 109,119 $ 418,343 $ 300,699 Canada and other 30,211 21,001 86,269 58,642 Total revenue $ 181,667 $ 130,120 $ 504,612 $ 359,341 Substantially all of the Company’s long-lived assets were located in the United States as of September 30, 2021 and December 31, 2020. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Business Combination On October 30, 2020, the Company completed an acquisition of 100% of the equity of Aquarium Software Limited (Aquarium), a U.K.-based insurance software provider, for approximately $48.3 million in net cash. The acquired technology from Aquarium focuses on the pet space and, along with the acquired personnel, is intended to enable the Company to improve its back-end software to help facilitate growth opportunities. The Company incurred $0.6 million acquisition-related costs that were recorded in general and administrative expenses. The acquisition is recorded using the purchase method of accounting in accordance with ASC 805, Business Combinations, which requires that the assets acquired and liabilities assumed to be recorded at their respective fair values at the acquisition date. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): October 30, 2020 Current assets, net of cash acquired $ 1,469 Property and equipment 171 Amortizable intangible assets 19,512 Goodwill 31,352 Other long-term assets 1,421 Current liabilities (1,269) Deferred tax liability and other liabilities (4,361) Total Consideration Transferred, net of cash acquired $ 48,295 |
Related Parties (Notes)
Related Parties (Notes) | 9 Months Ended |
Sep. 30, 2021 | |
Related Parties [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related PartiesIn August 2018, the Company invested $0.3 million in a limited liability entity in exchange for a 17.5% ownership interest. The investee is considered to be a related party, as the Company has the ability to exercise significant influence over the investee. In February 2020, the Company entered into a service agreement with the investee, under which the Company incurred $2.3 million and $1.7 million of expenses for consulting services provided by the investee for the nine months ended September 30, 2021 and 2020, respectively, recorded as sales and marketing expenses on the Company's consolidated statement of operations. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business and Basis of Presentation Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada, Puerto Rico, and Australia. The Company's data-driven, vertically-integrated approach enables the Company to provide pet owners with products that the Company believes are the highest value medical insurance, priced specifically for each pet’s unique characteristics. The financial data as of December 31, 2020 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), stockholders' equity and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 12, 2021 (the 2020 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2020 10-K. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2020 10-K for additional discussion of these estimates and assumptions. Reclassifications |
Basis of Accounting, Policy [Policy Text Block] | The financial data as of December 31, 2020 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), stockholders' equity and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 12, 2021 (the 2020 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2020 10-K. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2020 10-K for additional discussion of these estimates and assumptions. Reclassifications |
Other Investments Investment in
Other Investments Investment in Variable Interest Entity (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Variable Interest Entity Disclosure [Text Block] | Investment in Variable Interest Entity The Company has invested $7.0 million in preferred stock of Baystride, Inc., a privately held corporation operating in the pet food industry. 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 has the option to purchase all of the outstanding common shares issued by the variable interest entity in 2023 at an amount approximating its expected fair value. The preferred stock investment in the variable interest entity is accounted for as an available-for-sale debt security and measured at fair value at each balance sheet date. |
Other Investments Investment _2
Other Investments Investment in Joint Venture (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investment in Joint VentureIn September 2018, the Company acquired a non-controlling equity interest in a joint venture in Australia, 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 September 30, 2021, the Company has contributed $0.6 million AUD. This equity investment is accounted for using the equity method and is classified in other long-term assets on the Company's consolidated balance sheet. The Company's share of income and losses from this equity method investment is included in gain (loss) from investment in joint venture on its consolidated statement of operations. Also included in this line item are income and expenses associated with administrative services provided to the joint venture. |
Fair Value Notes Receivable (Po
Fair Value Notes Receivable (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | The Company's other long-term assets balance included notes receivable of $6.0 million and $6.1 million as of September 30, 2021 and December 31, 2020, 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. There was no significant activity in Level 3 of the hierarchy during the nine months ended September 30, 2021. The Company recognizes transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers between levels for the nine months ended September 30, 2021 and the year ended December 31, 2020. |
Claims Reserve Claims Reserve (
Claims Reserve Claims Reserve (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Liability Reserve Estimate, Policy [Policy Text Block] | Reserve for Veterinary InvoicesThe reserve for veterinary invoices is an estimate of the future amount the Company will pay for veterinary invoices that are dated as of, or prior to, its balance sheet date. The reserve also includes the Company's estimate of related internal processing costs. The reserve estimate involves actuarial projections, and is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated patterns. The Company uses generally accepted actuarial methodologies, such as paid loss development methods, in estimating the amount of the reserve for veterinary invoices. The reserve is made for each of the Company's segments, subscription and other business, and is continually refined as the Company receives and pays veterinary invoices. Changes in management's assumptions and estimates may have a relatively large impact to the reserve and associated expense. |
Segments Segments (Policies)
Segments Segments (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | The Company has two reporting segments: subscription business and other business. The subscription business segment generates revenue primarily from subscription fees related to the Company's "Trupanion" branded products, while the other business segment is comprised of revenue from other product offerings that generally have a business-to-business relationship and a different margin profile than our subscription segment, including revenue from writing policies on behalf of third parties and revenue from other products and software solutions.The chief operating decision maker reviews revenue and operating income (loss) to evaluate segment performance. Revenue, veterinary invoice expense, other cost of revenue, and sales and marketing expenses are generally directly attributed to each segment. Other operating expenses, such as technology and development expense, general and administrative expense, and depreciation and amortization, are allocated proportionately based on revenue in each segment. 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive equity securities were not included in the diluted earnings per share of common stock calculation because they would have had an antidilutive effect: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Stock options 843,452 1,647,052 843,452 1,647,052 Restricted stock awards and restricted stock units 1,138,709 765,825 1,138,709 765,825 |
Investment Securities Available
Investment Securities Available-for-Sale (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments [Abstract] | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The amortized cost, gross unrealized holding gains and losses, and estimates of fair value of long-term and short-term investments by major security type and class of security were as follows as of September 30, 2021 and December 31, 2020 (in thousands): Amortized Gross Gross Fair As of September 30, 2021 Long-term investments: Foreign deposits $ 5,605 $ — $ — $ 5,605 Municipal bond 1,000 — — 1,000 $ 6,605 $ — $ — $ 6,605 Short-term investments: U.S. Treasury securities $ 8,677 $ — $ (1) $ 8,676 Certificates of deposit 3,288 — — 3,288 U.S. government funds 99,920 — — 99,920 $ 111,885 $ — $ (1) $ 111,884 Amortized Gross Gross Fair As of December 31, 2020 Long-term investments: Foreign deposits $ 4,564 $ — $ — $ 4,564 Municipal bond 1,000 2 — 1,002 $ 5,564 $ 2 $ — $ 5,566 Short-term investments: U.S. Treasury securities $ 6,494 $ — $ (2) $ 6,492 Certificates of deposit 1,696 — — 1,696 U.S. government funds 81,672 — — 81,672 $ 89,862 $ — $ (2) $ 89,860 |
Debt Securities, Available-for-sale | Maturities of debt securities classified as available-for-sale were as follows (in thousands): As of September 30, 2021 Amortized Fair Available-for-sale: Due after one year through five years $ 6,605 $ 6,605 $ 6,605 $ 6,605 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value, asset & liabilities measured on recurring basis [Table Text Block] | The following tables summarize, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands): As of September 30, 2021 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 6,324 $ 6,324 $ — $ — Money market funds 71,754 71,754 — — Fixed maturities: Foreign deposits 5,605 5,605 — — Municipal bond 1,000 — 1,000 — Investment in variable interest entity 7,949 — — 7,949 Total $ 92,632 $ 83,683 $ 1,000 $ 7,949 As of December 31, 2020 Fair Value Level 1 Level 2 Level 3 Assets Restricted cash $ 6,319 $ 6,319 $ — $ — Money market funds 99,054 99,054 — — Fixed maturities: Foreign deposits 4,564 4,564 — — Municipal bond 1,002 — 1,002 — Investment in variable interest entity 7,949 — — 7,949 Total $ 118,888 $ 109,937 $ 1,002 $ 7,949 |
Claims Reserve (Tables)
Claims Reserve (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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): Nine Months Ended September 30, Subscription 2021 2020 Reserve at beginning of year $ 19,925 $ 15,541 Veterinary invoices during the period related to: Current year 262,721 202,734 Prior years (1,116) 356 Total veterinary invoice expense 261,605 203,090 Amounts paid during the period related to: Current year 240,488 185,828 Prior years 15,412 12,849 Total paid 255,900 198,677 Non-cash expenses 3,830 903 Reserve at end of period $ 21,800 $ 19,051 The Company's reserve for the subscription business segment increased from $19.9 million at December 31, 2020 to $21.8 million at September 30, 2021. This change was comprised of $261.6 million in expense recorded during the period less $255.9 million in payments of veterinary invoices. The $261.6 million in veterinary invoice expense incurred included a reduction of $1.1 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. For the nine months ended September 30, 2020, the Company increased prior year reserves by $0.4 million as a result of analysis of payment trends. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Nine Months Ended September 30, Other Business 2021 2020 Reserve at beginning of year $ 9,004 $ 5,653 Veterinary invoices during the period related to: Current year 91,912 50,062 Prior years (307) (197) Total veterinary invoice expense 91,605 49,865 Amounts paid during the period related to: Current year 75,062 40,406 Prior years 8,597 5,324 Total paid 83,659 45,730 Non-cash expenses — — Reserve at end of period $ 16,950 $ 9,788 The Company’s reserve for the other business segment increased from $9.0 million at December 31, 2020 to $17.0 million at September 30, 2021. This change was comprised of $91.6 million in expense recorded during the period less $83.7 million in payments of veterinary invoices. The $91.6 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. For the nine months ended September 30, 2020, the Company decreased prior year reserves by $0.2 million as a result of analysis of payment trends. |
IBRN plus expected development on reported claims[Table Text Block] | In the following tables, the reserve for veterinary invoices for each segment is presented as the amount (in thousands) by the year to which the veterinary invoice relates, referred to as the year of occurrence. Subscription As of September 30, 2021 Year of Occurrence 2019 and prior $ 1,116 2020 2,281 2021 18,403 $ 21,800 Other Business As of September 30, 2021 Year of Occurrence 2019 and prior $ — 2020 100 2021 16,850 $ 16,950 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Stock-based compensation expense includes stock options and restricted stock units granted to employees and other service providers and has been reported in the Company’s consolidated statements of operations depending on the function performed by the employee or other service provider. Stock-based compensation expense recognized in each category of the consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Veterinary invoice expense $ 769 $ 337 $ 3,740 $ 760 Other cost of revenue 542 111 2,029 300 Technology and development 749 133 2,213 366 General and administrative 2,271 1,108 6,412 2,912 Sales and marketing 2,112 741 7,024 1,972 Total expensed stock-based compensation 6,443 2,430 21,418 6,310 Capitalized stock-based compensation 170 58 463 178 Total stock-based compensation $ 6,613 $ 2,488 $ 21,881 $ 6,488 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the Company's stock option activity is as follows: Number of Options Weighted Average Exercise Price per Share Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2020 1,459,290 $ 9.93 $ 160,200 Granted — — — Exercised (612,475) 5.19 54,329 Forfeited (3,363) 13.08 — Outstanding as of September 30, 2021 843,452 13.36 54,245 Exercisable as of September 30, 2021 843,452 $ 13.36 $ 54,245 As of September 30, 2021, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.5 years. |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | A summary of the Company’s restricted stock unit activity is as follows: Number of Weighted Average Unvested shares as of December 31, 2020 782,755 $ 34.81 Granted 742,736 99.79 Vested (341,991) 38.67 Forfeited (44,791) 71.54 Unvested shares as of September 30, 2021 1,138,709 $ 74.59 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenue and Gross Profit from Segments [Table Text Block] | Operating income (loss) of the Company’s segments were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Subscription business: Revenue $ 127,077 $ 99,379 $ 360,742 $ 281,316 Veterinary invoice expense 90,626 71,872 261,605 203,090 Other cost of revenue 13,128 9,226 37,432 26,024 Technology and development 3,072 1,853 8,723 5,355 General and administrative 5,768 4,133 16,372 12,017 Sales and marketing 19,574 13,079 58,378 32,409 Depreciation and amortization 2,059 1,273 6,583 3,735 Subscription business operating loss (7,150) (2,057) (28,351) (1,314) Other business: Revenue 54,590 30,741 143,870 78,025 Veterinary invoice expense 34,432 19,394 91,605 49,865 Other cost of revenue 15,315 9,039 40,159 22,054 Technology and development 1,319 573 3,478 1,484 General and administrative 2,478 1,279 6,525 3,328 Sales and marketing 134 265 424 619 Depreciation and amortization 885 393 2,612 1,035 Other business operating income (loss) 27 (202) (933) (360) Gain (loss) from investment in joint venture (69) 2 (149) (84) Total operating loss $ (7,192) $ (2,257) $ (29,433) $ (1,758) |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 United States $ 151,457 $ 109,119 $ 418,343 $ 300,699 Canada and other 30,211 21,001 86,269 58,642 Total revenue $ 181,667 $ 130,120 $ 504,612 $ 359,341 |
Net Loss per Share (Details) Sc
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 843,452 | 1,647,052 | 843,452 | 1,647,052 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,138,709 | 765,825 | 1,138,709 | 765,825 |
Net Loss per Share Computation
Net Loss per Share Computation of Net Income (Loss) Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | ||||
Net income (loss) | $ (6,819) | $ (2,558) | $ (28,488) | $ (2,338) |
Investment Securities (Details)
Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Debt Securities, Held-to-maturity | $ 111,885 | $ 89,862 |
Debt Securities, Available-for-sale | 6,605 | 5,564 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 6,605 | 5,566 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 2 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 1 | 2 |
Debt Securities, Held-to-maturity, Fair Value | 111,884 | 89,860 |
Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Available-for-sale | 5,605 | 4,564 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 5,605 | 4,564 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Municipal Bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Available-for-sale | 1,000 | 1,000 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 1,000 | 1,002 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 2 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Held-to-maturity | 8,677 | 6,494 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 1 | 2 |
Debt Securities, Held-to-maturity, Fair Value | 8,676 | 6,492 |
Certificates of Deposit [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Held-to-maturity | 3,288 | 1,696 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 3,288 | 1,696 |
US Government Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Held-to-maturity | 99,920 | 81,672 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | $ 99,920 | $ 81,672 |
Investment Securities (Detail_2
Investment Securities (Details) Available-for-Sale - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Abstract] | ||
Available-for-sale securities, debt maturities, year two through five, amortized cost basis | $ 6,605 | |
Available-for-sale securities, debt maturities, year two through five, fair value | 6,605 | |
Available-for-sale securities, amortized cost | 6,605 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 6,605 | $ 5,566 |
Other Investments (Details)
Other Investments (Details) $ in Millions, $ in Millions | 9 Months Ended | |||||
Sep. 30, 2021USD ($) | Sep. 30, 2021AUD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021AUD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Investments, All Other Investments [Abstract] | ||||||
Purchase of Equity Interest | $ 7 | |||||
Financing Receivable, Revolving | $ 2.5 | |||||
Loans Receivable, Net | 2.5 | $ 2.5 | ||||
Other Commitment | $ 2.2 | |||||
Payments to Acquire Interest in Joint Venture | $ 0.6 | |||||
Services performed for Variable Interest Entity | $ 0.6 | $ 1 |
Fair Value (Details) Unobservab
Fair Value (Details) Unobservable - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 6,605,000 | $ 5,566,000 |
Noncontrolling Interest in Variable Interest Entity | 7,949,000 | 7,949,000 |
Assets, Fair Value Disclosure | 92,632,000 | 118,888,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling Interest in Variable Interest Entity | 0 | 0 |
Assets, Fair Value Disclosure | 83,683,000 | 109,937,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling Interest in Variable Interest Entity | 0 | 0 |
Assets, Fair Value Disclosure | 1,000,000 | 1,002,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling Interest in Variable Interest Entity | 7,949,000 | 7,949,000 |
Assets, Fair Value Disclosure | 7,949,000 | 7,949,000 |
Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 6,324,000 | 6,319,000 |
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 | 6,324,000 | 6,319,000 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 0 | 0 |
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 | 0 | 0 |
Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 5,605,000 | 4,564,000 |
Cash and Cash Equivalents, Fair Value Disclosure | 71,754,000 | 99,054,000 |
Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 5,605,000 | 4,564,000 |
Cash and Cash Equivalents, Fair Value Disclosure | 71,754,000 | 99,054,000 |
Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 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] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 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] | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 1,000,000 | 1,002,000 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value | 1,000,000 | 1,002,000 |
Municipal bond | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value | 0 | 0 |
Municipal bond | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value | 1,000,000 | 1,002,000 |
Municipal bond | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value | $ 0 | $ 0 |
Fair Value (Details) Narrative
Fair Value (Details) Narrative - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Note Receivable, Fair Value [Abstract] | |||
Purchase of Equity Interest | $ 7,000 | ||
Noncontrolling Interest in Variable Interest Entity | $ 7,949 | $ 7,949 | |
Notes Receivable, Fair Value Disclosure | $ 6,000 | $ 6,100 |
Claims Reserve (Details) Claims
Claims Reserve (Details) Claims Loss Roll-forward - Other business - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Claims Reserve | $ 16,950 | $ 9,788 | $ 9,004 | $ 5,653 |
Current Year Claims Incurred | 91,912 | 50,062 | ||
Prior Year Claims Incurred | (307) | (197) | ||
Total Claims Incurred | 91,605 | 49,865 | ||
Current Year Claims Paid | 75,062 | 40,406 | ||
Prior Years Claims Paid | 8,597 | 5,324 | ||
Total Claims Paid | 83,659 | 45,730 | ||
Claims expense non-cash | 0 | $ 0 | ||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 16,950 | |||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 100 | |||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | $ 16,850 |
Claims Reserve (Details) Narrat
Claims Reserve (Details) Narrative - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subscription business | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Claims Reserve | $ 21,800 | $ 19,051 | $ 19,925 | $ 15,541 |
Total Claims Incurred | 261,605 | 203,090 | ||
Total Claims Paid | 255,900 | 198,677 | ||
Prior Year Claims Incurred | (1,116) | 356 | ||
Other business | ||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||||
Claims Reserve | 16,950 | 9,788 | $ 9,004 | $ 5,653 |
Total Claims Incurred | 91,605 | 49,865 | ||
Total Claims Paid | 83,659 | 45,730 | ||
Prior Year Claims Incurred | $ (307) | $ (197) |
Claims Reserve Claims Reserve_2
Claims Reserve Claims Reserve (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subscription business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 21,800 | |||
Claims Reserve | 21,800 | $ 19,051 | $ 19,925 | $ 15,541 |
Current Year Claims Incurred | 262,721 | 202,734 | ||
Prior Year Claims Incurred | (1,116) | 356 | ||
Current Year Claims Paid | 240,488 | 185,828 | ||
Prior Years Claims Paid | 15,412 | 12,849 | ||
Total Claims Paid | 255,900 | 198,677 | ||
Claims expense non-cash | 3,830 | 903 | ||
Total Claims Incurred | 261,605 | 203,090 | ||
Other business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 16,950 | |||
Claims Reserve | 16,950 | 9,788 | $ 9,004 | $ 5,653 |
Current Year Claims Incurred | 91,912 | 50,062 | ||
Prior Year Claims Incurred | (307) | (197) | ||
Current Year Claims Paid | 75,062 | 40,406 | ||
Prior Years Claims Paid | 8,597 | 5,324 | ||
Total Claims Paid | 83,659 | 45,730 | ||
Claims expense non-cash | 0 | 0 | ||
Total Claims Incurred | 91,605 | $ 49,865 | ||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Subscription business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 1,116 | |||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Other business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 0 | |||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Subscription business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 2,281 | |||
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Other business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 100 | |||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Subscription business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 18,403 | |||
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Other business | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 16,850 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) Expense Category - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 6,613 | $ 2,488 | $ 21,881 | $ 6,488 |
Share-based Compensation Arrangement by Share-based Payment Award, Capitalized Cost | 170 | 58 | 463 | 178 |
Claims expense | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 769 | 337 | 3,740 | 760 |
Other Cost of Revenue | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 542 | 111 | 2,029 | 300 |
Technology and development | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 749 | 133 | 2,213 | 366 |
General and administrative | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 2,271 | 1,108 | 6,412 | 2,912 |
Sales and marketing | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 2,112 | 741 | 7,024 | 1,972 |
Total Expense [Member] | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 6,443 | $ 2,430 | $ 21,418 | $ 6,310 |
Restricted Stock Units (RSUs) [Member] | ||||
Stock-based Compensation | ||||
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period | 2 years 10 months 24 days | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 73,800 | $ 73,800 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,138,709 | 1,138,709 |
Stock-based Compensation (Det_2
Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation, options, outstanding, number of shares | 843,452 | 1,459,290 |
Stock-based compensation, options, granted, number of options | 0 | |
Stock-based compensation, options, exercised | (612,475) | |
Stock-based compensation, options, forfeited | (3,363) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 843,452 | |
Stock-based compensation, options, outstanding, weighted-average exercise price | $ 13.36 | $ 9.93 |
Stock-based compensation, options, granted, weighted-average exercise price | 0 | |
Stock-based compensation, options, exercised, weighted-average exercise price | 5.19 | |
Stock-based compensation, options, forfeited, weighted-average exercise price | 13.08 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 13.36 | |
Stock-based compensation, options, outstanding, aggregate intrinsic value | $ 54,245 | $ 160,200 |
Stock-based compensation, options, exercised, aggregate intrinsic value | 54,329 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 54,245 | |
Remaining contractual life, share-based payments, weighted average | 4 years 6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 6 months |
Stock-based Compensation Restri
Stock-based Compensation Restricted Stock Awards (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,138,709 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period | 2 years 10 months 24 days | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,138,709 | 782,755 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 742,736 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (44,791) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (341,991) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 74.59 | $ 34.81 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 99.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 71.54 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 38.67 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Outstanding | 40,363,775 | 39,450,807 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Segments (Details) Business Seg
Segments (Details) Business Segment - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 181,667,000 | $ 130,120,000 | $ 504,612,000 | $ 359,341,000 |
Veterinary invoice expense(1) | 125,058,000 | 91,266,000 | 353,210,000 | 252,955,000 |
Other Cost of Services Sold | 28,443,000 | 18,265,000 | 77,591,000 | 48,078,000 |
Operating Expenses | 35,289,000 | 22,848,000 | 103,095,000 | 59,982,000 |
Technology and Development Expense | 4,391,000 | 2,426,000 | 12,201,000 | 6,839,000 |
General and administrative | 8,246,000 | 5,412,000 | 22,897,000 | 15,345,000 |
Sales and marketing | 19,708,000 | 13,344,000 | 58,802,000 | 33,028,000 |
Depreciation and Amortization | 2,944,000 | 1,666,000 | 9,195,000 | 4,770,000 |
Income (Loss) from Equity Method Investments | (69,000) | 2,000 | (149,000) | (84,000) |
Operating loss | (7,192,000) | (2,257,000) | (29,433,000) | (1,758,000) |
Subscription business | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 127,077,000 | 99,379,000 | 360,742,000 | 281,316,000 |
Veterinary invoice expense(1) | 90,626,000 | 71,872,000 | 261,605,000 | 203,090,000 |
Other Cost of Services Sold | 13,128,000 | 9,226,000 | 37,432,000 | 26,024,000 |
Technology and Development Expense | 3,072,000 | 1,853,000 | 8,723,000 | 5,355,000 |
General and administrative | 5,768,000 | 4,133,000 | 16,372,000 | 12,017,000 |
Sales and marketing | 19,574,000 | 13,079,000 | 58,378,000 | 32,409,000 |
Cost, Depreciation and Amortization | 2,059,000 | 1,273,000 | ||
Depreciation and Amortization | 6,583,000 | 3,735,000 | ||
Operating loss | (7,150,000) | (2,057,000) | (28,351,000) | (1,314,000) |
Other business | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 54,590,000 | 30,741,000 | 143,870,000 | 78,025,000 |
Veterinary invoice expense(1) | 34,432,000 | 19,394,000 | 91,605,000 | 49,865,000 |
Other Cost of Services Sold | 15,315,000 | 9,039,000 | 40,159,000 | 22,054,000 |
Technology and Development Expense | 1,319,000 | 573,000 | 3,478,000 | 1,484,000 |
General and administrative | 2,478,000 | 1,279,000 | 6,525,000 | 3,328,000 |
Sales and marketing | 134,000 | 265,000 | 424,000 | 619,000 |
Cost, Depreciation and Amortization | 885,000 | 393,000 | ||
Depreciation and Amortization | 2,612,000 | 1,035,000 | ||
Operating loss | $ 27,000 | $ (202,000) | $ (933,000) | $ (360,000) |
Segments (Details) Revenue by G
Segments (Details) Revenue by Geography - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 181,667 | $ 130,120 | $ 504,612 | $ 359,341 |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 151,457 | 109,119 | 418,343 | 300,699 |
Canada and other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 30,211 | $ 21,001 | $ 86,269 | $ 58,642 |
Business Combinations (Details)
Business Combinations (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Business Combinations [Abstract] | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 48,300,000 |
Business Acquisition, Transaction Costs | 600,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 1,469,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 171,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 19,512,000 |
Goodwill, Acquired During Period | 31,352,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,421,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (1,269,000) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | (4,361,000) |
Business Combination, Consideration Transferred | $ 48,295,000 |
Related Parties (Details)
Related Parties (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Related Parties [Abstract] | ||
Equity Method Investments | $ 300,000 | |
Equity Method Investment, Ownership Percentage | 17.50% | |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 2,300,000 | $ 1,700,000 |