Cover Page Document
Cover Page Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 10, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36537 | ||
Entity Registrant Name | TRUPANION, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-0480694 | ||
Entity Address, Address Line One | 6100 4th Avenue S, Suite 200 | ||
Entity Address, City or Town | Seattle, | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98108 | ||
City Area Code | (855) | ||
Local Phone Number | 727 - 9079 | ||
Title of 12(b) Security | Common stock, $0.00001 par value per share | ||
Trading Symbol | TRUP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,594,506,127 | ||
Entity Common Stock, Shares Outstanding | 40,505,310 | ||
Entity Central Index Key | 0001371285 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Seattle, Washington |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 698,991 | $ 502,028 | $ 383,936 |
Veterinary invoice expense | 486,062 | 351,124 | 270,947 |
Other cost of revenue | 108,583 | 69,003 | 48,065 |
Total cost of revenue | 594,645 | 420,127 | 319,012 |
Technology and development | 16,866 | 9,947 | 7,025 |
General and administrative | 31,893 | 21,847 | 18,384 |
New pet acquisition expense | 78,647 | 47,837 | 35,451 |
Depreciation and amortization | 11,965 | 7,071 | 5,632 |
Total operating expenses | 139,371 | 86,702 | 66,492 |
Loss from investment in joint venture | (171) | (126) | (352) |
Operating loss | (35,196) | (4,927) | (1,920) |
Interest expense | 10 | 1,381 | 1,349 |
Other expense (income), net | 14 | (581) | (1,629) |
Loss before income taxes | (35,220) | (5,727) | (1,640) |
Income tax expense | 310 | 113 | 169 |
Net loss | $ (35,530) | $ (5,840) | $ (1,809) |
Earnings Per Share, Basic and Diluted | $ (0.89) | $ (0.16) | $ (0.05) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 40,137,505 | 35,858,869 | 34,645,345 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net loss | $ (35,530) | $ (5,840) | $ (1,809) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (496) | 2,496 | 359 |
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | 502 | 325 | 644 |
Other Comprehensive Income (Loss), Net of Tax, Total | 6 | 2,821 | 1,003 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | $ (35,524) | $ (3,019) | $ (806) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 87,400 | $ 139,878 |
Short-term investments | 126,012 | 89,862 |
Accounts and other receivables | 165,217 | 99,065 |
Prepaid expenses and other assets | 12,325 | 8,222 |
Total current assets | 390,954 | 337,027 |
Restricted cash | 13,469 | 6,319 |
Long-term investments, at fair value | 7,061 | 5,566 |
Property and equipment, net | 77,950 | 72,602 |
Intangible assets, net | 22,663 | 27,134 |
Other long-term assets | 17,776 | 16,557 |
Goodwill | 32,709 | 33,045 |
Total assets | 562,582 | 498,250 |
Liabilities and Equity [Abstract] | ||
Accounts payable | 8,952 | 6,059 |
Accrued liabilities and other current liabilities | 28,162 | 22,864 |
Reserve for veterinary invoices | 39,671 | 28,929 |
Deferred revenue | 146,911 | 92,547 |
Total current liabilities | 223,696 | 150,399 |
Deferred tax liabilities | 2,827 | 4,705 |
Other liabilities | 3,859 | 3,207 |
Total liabilities | 230,382 | 158,311 |
Common stock: $0.00001 par value per share | 0 | 0 |
Preferred stock: $0.00001 par value per share | 0 | 0 |
Additional paid-in capital | 466,792 | 439,007 |
Accumulated other comprehensive income (loss) | 3,077 | 3,071 |
Accumulated deficit | (126,890) | (91,360) |
Treasury stock, at cost | (10,779) | (10,779) |
Total stockholders' equity | 332,200 | 339,939 |
Total liabilities and stockholders’ equity | $ 562,582 | $ 498,250 |
Consolidated Balance Sheet Cond
Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
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 | 41,408,350 | 40,383,972 |
Common Stock, Shares, Outstanding | 40,475,185 | 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 |
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 342 | $ 271 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2018 | 34,025,136 | |||||
Beginning balance at Dec. 31, 2018 | $ 129,173 | $ 0 | $ 219,838 | $ (83,711) | $ (753) | $ (6,201) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of warrants, net (in shares) | 306,120 | |||||
Exercise of warrants, net | 300 | 4,800 | (4,500) | |||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings (in shares) | 615,761 | |||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings | (1,043) | (1,043) | ||||
Stock-based compensation expense | 7,050 | 7,050 | ||||
Other comprehensive income (loss) | 1,003 | 1,003 | ||||
Net loss | (1,809) | (1,809) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 34,947,017 | |||||
Ending balance at Dec. 31, 2019 | $ 136,760 | $ 0 | 232,731 | (85,520) | 250 | (10,701) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock from private placement (in shares) | 3,636,364 | 3,636,364 | ||||
Issuance of common stock from private placement | $ 192,265 | 192,265 | ||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings (in shares) | 870,726 | |||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings | (4,864) | (4,864) | ||||
Stock-based compensation expense | 9,147 | 9,147 | ||||
Repurchase of common stock (in shares) | (3,300) | |||||
Repurchase of common stock | (78) | (78) | ||||
Other comprehensive income (loss) | 2,821 | 2,821 | ||||
Net loss | $ (5,840) | (5,840) | ||||
Ending balance (in shares) at Dec. 31, 2020 | 39,450,807 | 39,450,807 | ||||
Ending balance at Dec. 31, 2020 | $ 339,939 | $ 0 | 439,007 | (91,360) | 3,071 | (10,779) |
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) | 1,024,378 | |||||
Issuance of common stock in connection with the Company's equity award programs, net of tax withholdings | (1,117) | (1,117) | ||||
Stock-based compensation expense | 28,902 | 28,902 | ||||
Other comprehensive income (loss) | 6 | 6 | ||||
Net loss | $ (35,530) | (35,530) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 40,475,185 | 40,475,185 | ||||
Ending balance at Dec. 31, 2021 | $ 332,200 | $ 0 | $ 466,792 | $ (126,890) | $ 3,077 | $ (10,779) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net loss | $ (35,530) | $ (5,840) | $ (1,809) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Depreciation and amortization | 11,965 | 7,071 | 5,632 |
Stock-based compensation expense | 28,226 | 8,912 | 6,846 |
Other, net | (1,927) | 153 | 105 |
Increase (Decrease) in Operating Assets [Abstract] | |||
Accounts and other receivables | (66,170) | (43,272) | (22,772) |
Prepaid expenses and other assets | (3,055) | (2,839) | (432) |
Accounts payable, accrued liabilities, and other liabilities | 8,796 | 9,951 | 4,110 |
Reserve for veterinary invoices | 10,768 | 7,662 | 5,059 |
Deferred revenue | 54,385 | 39,746 | 19,418 |
Net cash provided by operating activities | 7,458 | 21,544 | 16,157 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Purchases of investment securities | (95,672) | (65,286) | (65,506) |
Maturities of investment securities | 57,869 | 44,066 | 49,762 |
Cash paid in business acquisition, net of cash acquired | 0 | (48,133) | 0 |
Purchases of other investments | 0 | 0 | 4,000 |
Purchases of property and equipment | (12,355) | (7,451) | (5,373) |
Other | (1,755) | 57 | (2,891) |
Net cash used in investing activities | (51,913) | (76,747) | (28,008) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Issuance of common stock, net of offering costs | 0 | 192,265 | 0 |
Proceeds from exercise of stock options | 3,607 | 6,013 | 2,982 |
Shares withheld to satisfy tax withholding | (4,732) | (1,115) | (1,667) |
Proceeds from debt financing, net of financing fees | 0 | 6,213 | 13,167 |
Repayment of debt financing | 0 | (32,450) | 0 |
Other | 0 | (78) | (438) |
Net cash (used in) provided by financing activities | (1,125) | 170,848 | 14,044 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | 252 | (16) | 423 |
Net change in cash, cash equivalents, and restricted cash | (45,328) | 115,629 | 2,616 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 146,197 | 30,568 | 27,952 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 100,869 | 146,197 | 30,568 |
Supplemental Cash Flow Information [Abstract] | |||
Income taxes paid (refund) | (282) | (31) | (158) |
Interest paid | 16 | 1,363 | 1,188 |
Issuance of common stock for cashless exercise of warrants | 0 | 0 | 4,500 |
Purchases of property and equipment included in accounts payable and accrued liabilities | 729 | 861 | 485 |
Acquisition-related contingent consideration recorded as a liability | $ 0 | $ 162 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Description of Business Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the "Company") provides medical insurance 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. 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 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. Reclassifications Depreciation and amortization expenses have been reclassified as a separate line item in the consolidated statement of operations since 2020 and prior period amounts have been reclassified from their original presentation to conform to the current period presentation. The Company has elected to present depreciation and amortization expenses as a separate line item to better align with management's view of the Company's operating results. 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 required to maintain certain restricted cash balances to comply with insurance company regulations. As of December 31, 2021, 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. Accounts receivable balance is primarily related to the Company’s other business segment where the Company generates revenue from underwriting policies through unaffiliated general agents. These policies are typically annual policies, with monthly payment terms through the end of the twelve-month period. The Company had $159.4 million and $94.2 million accounts receivable associated with underwriting these policies as of December 31, 2021 and 2020, respectively. 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 new pet acquisition expense or other cost of revenue. Deferred acquisition costs as of December 31, 2021 and 2020 were $4.3 million and $2.9 million, respectively. Amortized deferred acquisition costs classified within new pet acquisition expense amounted to $4.7 million, $3.2 million, and $2.5 million and amortized deferred acquisition costs classified within other cost of revenue amounted to $30.5 million, $23.2 million, and $19.2 million, for the years ended December 31, 2021, 2020, and 2019, 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 8, 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 Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized. The Company reviews these assets for impairment at least annually or if indicators of potential impairment exist. Acquired finite-lived intangibles are amortized on a straight-line basis over the estimated useful lives of the assets. Asset Impairment Long-lived assets, including property, equipment, and intangible assets, 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, 2021, 2020, and 2019. 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. As of each balance sheet date, the Company reevaluates its reserve and may adjust the estimate for new information. Deferred Revenue Deferred revenue is primarily related to the Company’s other business segment where the Company generates revenue from underwriting policies through unaffiliated general agents. These policies are typically annual policies, with monthly payment terms through the end of the twelve-month period. Deferred revenue also consists of subscription fees received or billed in advance of the subscription services within the Company's subscription business. 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 or paid. 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 and costs to administer the programs in the other business 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. It also includes expenses associated with development of new products and offerings. 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. New Pet Acquisition Expense New pet acquisition expense primarily consists of costs, including employee compensation, to educate veterinarians and consumers about the benefits of Trupanion, to generate leads and to convert leads into enrolled pets, as well as print, online and promotional advertising costs. New pet acquisition expense was previously termed “sales and marketing” on the consolidated statement of operations. This update represents a change in name only. It does not denote a change in method of accounting. Other Income, Net Other income, net, was nil, $0.6 million, and $1.6 million, including interest income of $0.3 million, $0.6 million, and $1.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. 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 $23.6 million, $13.4 million and $7.8 million, in the years ended December 31, 2021, 2020 and 2019, 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 Topic 14, Share-Based Payment; • 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 $(1.6) million, $(2.1) million, and $0.4 million were recorded in accumulated other comprehensive loss as of December 31, 2021, 2020, and 2019, 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 2021, 2020, and 2019 was $112.0 million, $81.3 million and $67.5 million, respectively, and deferred revenue relating to this arrangement at December 31, 2021 and 2020 was $4.7 million and $3.6 million, respectively. Reinsurance revenue was 16%, 16%, and 18% of total revenue in 2021, 2020, and 2019, respectively. Cash designated for the purpose of paying claims related to this reinsurance agreement was $7.7 million and $6.5 million at December 31, 2021 and 2020, 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 120% of unearned Canadian premium plus 20% of outstanding Canadian claims, including all incurred but not reported claims. As of December 31, 2021, the account balance was CAD $7.7 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. |
Net Loss per Share (Notes)
Net Loss per Share (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 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 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. 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: As of December 31, 2021 2020 2019 Stock options 807,205 1,459,290 2,097,978 Restricted stock awards and restricted stock units 1,087,627 782,755 581,943 |
Business Combinations (Notes)
Business Combinations (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination | 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 $0.5 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 The Company acquired intangible assets which included trade name, developed technologies, and customer relationships. The goodwill recognized is attributable primarily to going concern value such as assembled workforce, future technology development, future customers, and expected synergies from incorporating the operations into Trupanion’s portfolio. It has been assigned to the subscription business segment. None of the goodwill associated with this acquisition is expected to be deductible for income tax purposes. |
Property Plant and Equipment (N
Property Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Land and improvements $ 15,911 $ 15,854 Building and improvements 48,547 46,682 Software 37,984 27,707 Office equipment and other 6,258 4,146 Construction in progress 540 2,855 Property and equipment, at cost 109,240 97,244 Less: Accumulated depreciation (31,290) (24,642) Property and equipment, net $ 77,950 $ 72,602 |
Intangible Assets (Notes)
Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill arises from business acquisitions in which the purchase price exceeds the fair value of tangible and intangible assets acquired less assumed liabilities. As discussed in Note 3—Business Combination, the Company recognized $31.4 million in goodwill on October 30, 2020. The carrying amount of goodwill was $32.7 million and $33.0 million as of December 31, 2021 and 2020, respectively, due to a foreign exchange translation fluctuation of $(0.3) million during the year ended December 31, 2021. The following table presents the detail of intangible assets other than goodwill for the periods presented (in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2021: Licenses $ 4,773 $ — $ 4,773 Leases 2,959 (2,539) 420 Trade name 1,373 (160) 1,213 Developed technologies 11,516 (2,721) 8,795 Customer relationships 7,589 (1,771) 5,818 Patents, trademarks, and other 2,373 (729) 1,644 Total Intangibles $ 30,583 $ (7,920) $ 22,663 December 31, 2020: Licenses $ 4,773 $ — $ 4,773 Leases 2,959 (2,213) 746 Trade name 1,387 (23) 1,364 Developed technologies 11,512 (352) 11,160 Customer relationships 7,667 (256) 7,411 Patents, trademarks, and other 2,037 (357) 1,680 Total Intangibles $ 30,335 $ (3,201) $ 27,134 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 have a remaining weighted average useful life of 1.4 years. Intangible assets acquired from the Aquarium acquisition included trade name, developed technologies, and customer relationships. These definite-lived intangible assets have a remaining weighted average useful life of 4.1 years. Patents, trademarks, and other intangible assets have a remaining weighted average useful life of 5.0 years. Amortization expense associated with intangible assets was $4.9 million, $1.9 million, and $0.9 million for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in thousands): Year ending December 31: 2022 $ 4,775 2023 4,411 2024 3,988 2025 3,293 2026 163 Thereafter 733 Total $ 17,363 |
Investment Securities (Notes)
Investment Securities (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 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 December 31, 2021 and 2020 (in thousands): Amortized Gross Gross Fair As of December 31, 2021 Long-term investments: Foreign deposits $ 6,050 $ — $ — $ 6,050 Municipal bond 1,000 11 — 1,011 $ 7,050 $ 11 $ — $ 7,061 Short-term investments: U.S. Treasury securities $ 8,671 $ — $ (9) $ 8,662 Certificates of deposit 3,295 — — 3,295 U.S. government funds 114,046 — — 114,046 $ 126,012 $ — $ (9) $ 126,003 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): December 31, 2021 Amortized Fair Available-for-sale: Due after one year through five years $ 7,050 $ 7,061 $ 7,050 $ 7,061 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 there were no unrealized losses. 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) | 12 Months Ended |
Dec. 31, 2021 | |
Other Investments [Abstract] | |
Other Investments | Other Investments Investment in Variable Interest Entity The Company has invested $7.0 million in preferred stock of Baystride, Inc., a U.S.-based 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 $4.1 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, including accrued interest, was $4.5 million and $2.8 million as of December 31, 2021 and 2020, respectively. 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 $0.9 million and $1.2 million of these services for the years ended December 31, 2021 and 2020, respectively. Investment in Joint Venture In 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 December 31, 2021, the Company has contributed $0.8 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)
Fair Value (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Investments The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands): As of December 31, 2021 Fair Value Level 1 Level 2 Level 3 Assets Money market funds 32,255 32,255 — — Fixed maturities: Foreign deposits 6,050 6,050 — — Municipal bond 1,011 — 1,011 — Preferred shares in variable interest entity 8,442 — — 8,442 Total $ 47,758 $ 38,305 $ 1,011 $ 8,442 As of December 31, 2020 Fair Value Level 1 Level 2 Level 3 Assets Money market funds 99,054 99,054 — — Fixed maturities: Foreign deposits 4,564 4,564 — — Municipal bond 1,002 — 1,002 — Preferred shares in variable interest entity 7,949 — — 7,949 Total $ 112,569 $ 103,618 $ 1,002 $ 7,949 The Company measures the fair value of 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 6, 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 7) 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 $8.4 million and $7.9 million as of December 31, 2021 and 2020, respectively, recorded in other long-term assets on the Company's consolidated balance sheet. The changes in fair value, due entirely to unrealized gains, were $0.5 million and $0.3 million for the years ended December 31, 2021 and 2020, respectively. Fair Value Disclosures The Company's other long-term assets balance included notes receivable of $7.6 million and $6.1 million as of December 31, 2021 and 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 year ended December 31, 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 years ended December 31, 2021 and 2020. |
Commitment and Contingencies (N
Commitment and Contingencies (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesFrom 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 (Notes)
Claims Reserve (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Reserve for Veterinary Invoices | 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 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 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 2021 2020 2019 Reserve at beginning of year $ 19,925 $ 15,541 $ 13,875 Veterinary invoice expense during the period related to: Current year 357,859 278,776 231,831 Prior years (1,411) 229 585 Total veterinary invoice expense 356,448 279,005 232,416 Amounts paid during the period related to: Current year 333,182 259,971 217,538 Prior years 16,109 13,387 12,494 Total paid 349,291 273,358 230,032 Non-cash expenses 4,675 1,263 718 Reserve at end of period $ 22,407 $ 19,925 $ 15,541 The Company's reserve for the subscription business segment increased $2.5 million from $19.9 million at December 31, 2020 to $22.4 million at December 31, 2021. This change was comprised of $356.4 million in expense recorded during the period less $349.3 million in payments of veterinary invoices. This $356.4 million in veterinary invoice expense incurred included a reduction of $1.4 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 an increase of $0.2 million and $0.6 million as a result of analysis of payment trends in the years ended December 31, 2020 and 2019, respectively. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Year Ended December 31, Other Business 2021 2020 2019 Reserve at beginning of year $ 9,004 $ 5,653 $ 2,187 Veterinary invoice expense during the period related to: Current year 129,826 72,286 38,881 Prior years (212) (167) (350) Total veterinary invoice expense 129,614 72,119 38,531 Amounts paid during the period related to: Current year 112,574 63,359 33,254 Prior years 8,780 5,409 1,811 Total paid 121,354 68,768 35,065 Non-cash expenses — — — Reserve at end of period $ 17,264 $ 9,004 $ 5,653 The Company’s reserve for the other business segment increased $8.3 million from $9.0 million at December 31, 2020 to $17.3 million at December 31, 2021. This change was comprised of $129.6 million in expense recorded during the period less $121.4 million in payments of veterinary invoices. This $129.6 million in veterinary invoice expense incurred included a reduction of $0.2 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 $0.4 million as a result of analysis of payment trends in each of the years ended December 31, 2020 and 2019, respectively. Veterinary invoice expenses In the following tables, the cumulative number of veterinary invoices represents the total number received as of December 31, 2021, 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 2018 through 2020 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, 2021. 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 2018 2019 2020 2021 2021 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 191,211 $ 191,696 $ 191,792 $ 191,302 $ — 886,880 2019 $ 233,629 $ 234,006 $ 233,824 $ 664 1,054,693 2020 $ 281,272 $ 280,343 $ 1,741 1,179,573 2021 $ 356,725 $ 20,002 1,348,961 $ 1,062,194 $ 22,407 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 2018 2019 2020 2021 2021 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 23,786 $ 23,375 $ 23,470 $ 23,440 $ — 175,091 2019 $ 38,885 $ 38,610 $ 38,682 $ — 282,499 2020 $ 72,297 $ 72,035 $ 12 532,306 2021 $ 129,822 $ 17,252 843,354 $ 263,979 $ 17,264 Cumulative paid veterinary invoice expense In the following tables, amounts are by the 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, 2021. Information for years 2018 through 2020 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 2018 2019 2020 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 178,570 $ 190,327 $ 191,090 $ 191,302 2019 $ 220,013 $ 232,326 $ 233,159 2020 $ 263,729 $ 278,602 2021 $ 336,724 $ 1,039,787 Total amounts unpaid and recorded as a liability $ 22,407 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 2018 2019 2020 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 21,617 $ 23,355 $ 23,425 $ 23,440 2019 $ 33,258 $ 38,578 $ 38,682 2020 $ 63,371 $ 72,023 2021 $ 112,570 $ 246,715 Total amounts unpaid and recorded as a liability $ 17,264 |
Stock-based Compensation (Notes
Stock-based Compensation (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | 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 for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Veterinary invoice expense $ 4,538 $ 1,118 $ 697 Other cost of revenue 2,610 468 353 Technology and development 3,056 758 364 General and administrative 8,862 3,795 3,312 New pet acquisition expense 9,160 2,773 2,120 Total expensed stock-based compensation 28,226 8,912 6,846 Capitalized stock-based compensation 676 235 204 Total stock-based compensation $ 28,902 $ 9,147 $ 7,050 As of December 31, 2021, the Company had 1,087,627 unvested restricted stock units. Stock-based compensation expenses of $71.6 million related to unvested restricted stock units are expected to be recognized over a weighted average period of approximately 2.8 years. 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 new stock options during the years ended December 31, 2021, 2020, and 2019. The following table presents information regarding stock options granted, exercised and forfeited for the periods presented: Number Weighted Average Aggregate Outstanding as of January 1, 2019 2,621,503 $ 9.01 $ 43,136 Granted — — — Exercised (510,268) 5.28 13,151 Forfeited (13,257) 18.23 — Outstanding as of December 31, 2019 2,097,978 9.86 57,907 Granted — — — Exercised (626,554) 9.54 35,696 Forfeited (12,134) 17.41 — Outstanding as of December 31, 2020 1,459,290 9.93 160,200 Granted — — — Exercised (647,164) 5.59 58,200 Forfeited (4,921) 13.66 — Outstanding as of December 31, 2021 807,205 13.39 95,765 Exercisable at December 31, 2021 807,205 $ 13.39 $ 95,765 As of December 31, 2021, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.2 years. The fair value of options vested were as follows for the years ended December 31, 2021, 2020, and 2019. The Company didn't grant any stock options in these three years. Weighted Average Grant Date Fair Value per Share Fair Value of Options Vested Year: 2019 $ — $ 1,591 2020 $ — $ 1,105 2021 $ — $ 313 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, 2021, 2020 and 2019: Number of Weighted Average Unvested shares as of January 1, 2019 451,160 $ 22.16 Granted 459,523 30.03 Vested (276,184) 18.20 Forfeited (52,556) 29.85 Unvested shares as of December 31, 2019 581,943 29.56 Granted 535,184 37.60 Vested (266,640) 29.77 Forfeited (67,732) 31.51 Unvested shares as of December 31, 2020 782,755 34.81 Granted 787,730 101.32 Vested (426,725) 40.10 Forfeited (56,133) 72.93 Unvested shares as of December 31, 2021 1,087,627 $ 78.94 |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office space and equipment from third parties and recognizes lease expense on a straight-line basis over the lease term. For operating leases with an initial term of over 12 months, the Company recorded $0.8 million and $0.9 million right-of-use assets and lease liabilities on its consolidated balance sheets, within the other liabilities The Company also leases a portion of its home office building to third parties and records related rental income within general and administrative expense in the consolidated statements of operations. These leases have remaining lease terms of up to 5 years, some of which give tenants options to terminate the leases early, with termination fees required. The Company recorded rental income of $1.1 million, $1.9 million, and $2.2 million for the years ended December 31, 2021, 2020, and 2019 respectively. The following table summarizes the Company's future rental payments to be received from non-cancellable leases in place as of December 31, 2021 (in thousands): Year ending December 31: 2022 $ 1,173 2023 669 2024 163 2025 168 2026 100 Thereafter — Total rental payments $ 2,273 |
Stockholder's Equity (Notes)
Stockholder's Equity (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders ’ Equity Common Stock and Preferred Stock As of December 31, 2021, the Company had 100,000,000 shares of common stock authorized and 40,475,185 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, 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. Issuance of Common Stock in a Private Placement The Company issued 3,636,364 shares of common stock through a private placement in the fourth quarter of 2020 for net proceeds of $192.3 million. The issued shares were subject to a minimum holding period of three years. 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 (Notes)
Segments (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | 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 new pet acquisition 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): Year Ended December 31, 2021 2020 2019 Subscription business: Revenue $ 494,862 $ 387,732 $ 321,163 Veterinary invoice expense 356,448 279,005 232,415 Other cost of revenue 51,216 35,870 29,724 Technology and development 11,942 7,673 5,879 General and administrative 22,579 16,866 15,397 New pet acquisition expense 78,148 47,017 35,037 Depreciation and amortization 8,494 5,451 4,725 Subscription business operating loss (33,965) (4,150) (2,014) Other business: Revenue 204,129 114,296 62,773 Veterinary invoice expense 129,614 72,119 38,532 Other cost of revenue 57,367 33,133 18,341 Technology and development 4,924 2,274 1,146 General and administrative 9,314 4,981 2,987 New pet acquisition expense 499 820 414 Depreciation and amortization 3,471 1,620 907 Other business operating income (loss) (1,060) (651) 446 Loss from investment in joint venture (171) (126) (352) Total operating loss $ (35,196) $ (4,927) $ (1,920) The following table presents the Company’s revenue by geographic region of the member (in thousands): Year Ended December 31, 2021 2020 2019 United States $ 580,966 $ 419,162 $ 316,138 Canada and other 118,025 82,866 67,798 Total revenue $ 698,991 $ 502,028 $ 383,936 Substantially all of the Company’s long-lived assets were located in the United States as of December 31, 2021 and 2020. |
Dividend Restrictions Statutory
Dividend Restrictions Statutory Surplus (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Dividend Restrictions And Statutory Surplus | 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 (APIC), and one of which is a segregated cell business, Wyndham Segregated Account AX, located in Bermuda. In 2021, the Company established two new wholly-owned insurance subsidiaries, ZPIC Insurance Company (ZPIC) and QPIC Insurance Company (QPIC), domiciled in Missouri and Nebraska, respectively. 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, 2021, 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 $0.2 million. This insurance subsidiary did not pay dividends to the Company during the years ended December 31, 2021, 2020, and 2019. 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 $5.6 million, $4.7 million, and $3.9 million during the years ended December 31, 2021, 2020 and 2019, respectfully. The statutory net income for 2021, 2020 and 2019 and statutory capital and surplus at December 31, 2021, 2020 and 2019, for the Company’s insurance subsidiary in New York were as follows (in thousands): As of December 31, 2021 2020 2019 Statutory net income $ 24,409 $ 17,547 $ 16,311 Statutory capital and surplus $ 124,189 $ 93,171 $ 73,810 As of December 31, 2021, the Company’s insurance subsidiary in New York maintained $124.2 million of statutory capital and surplus which was above the required amount of $116.0 million of statutory capital and surplus to avoid additional regulatory oversight. The Company has funded $7.8 million of statutory capital to ZPIC in 2021, and $7.8 million of statutory capital to QPIC in January 2022. ZPIC and QPIC will each be required to maintain a level of surplus as determined by their respective domiciliary regulators. As of December 31, 2021, neither ZPIC nor QPIC has begun underwriting any insurance policies. As of December 31, 2021, the Company had $9.2 million on deposit with various states in which it writes policies. |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Loss before income taxes was as follows for the years ended December 31, 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 2020 2019 United States $ (34,052) $ (5,408) $ (1,783) Foreign (1,168) (319) 143 $ (35,220) $ (5,727) $ (1,640) The components of income tax expense (benefit) were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current: U.S. federal & state $ 58 $ 198 $ 12 Foreign 2,066 45 52 2,124 243 64 Deferred: U.S. federal & state (15) (9) 116 Foreign (1,799) (121) (11) (1,814) (130) 105 Income tax expense (benefit) $ 310 $ 113 $ 169 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, 2021 2020 2019 Federal income taxes at statutory rate 21.0 % 21.0 % 21.0 % U.S. state income taxes 7.5 (2.6) (7.8) Equity compensation 30.4 122.3 177.2 Change in valuation allowance (58.4) (136.0) (184.2) Nondeductible fines and settlements (0.2) (1.1) (9.2) Other, net (1.5) (3.0) (16.5) Credits 0.3 (2.6) 9.2 Effective income tax rate (0.9) % (2.0) % (10.3) % The principal components of the Company’s deferred tax assets and liabilities were as follows (in thousands): As of December 31, 2021 2020 Deferred tax assets: Deferred revenue $ 6,232 $ 3,921 Accruals and reserves 2,294 1,822 Net operating loss carryforwards 52,796 37,070 Depreciation and amortization 833 27 Equity compensation 4,126 1,776 Credits 847 697 Other 381 706 Total deferred tax assets 67,509 46,019 Deferred tax liabilities: Deferred costs (887) (637) Intangible assets (2,802) (4,895) Other (1,817) (960) Total deferred tax liabilities (5,506) (6,492) Total deferred taxes 62,003 39,527 Less deferred tax asset valuation allowance (64,791) (44,194) Net deferred tax liability $ (2,788) $ (4,667) At December 31, 2021, the Company had U.S. federal and state net operating loss carryforwards of $52.8 million (tax-effected) and U.S. federal income tax credits of $0.8 million. Use of carryforwards is limited based on the future income of the Company. The federal net operating loss carryforwards will begin to expire in 2026. 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, 2021, 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 and the majority of its U.S. State deferred tax assets as of December 31, 2021, 2020, and 2019 because the Company’s management has determined that it is more likely than not that these assets will not be fully realized. For the year ended December 31, 2021, the Company recognized a net increase of $20.6 million in valuation allowance against its net deferred tax assets associated with U.S. federal and certain state jurisdictions, primarily attributable to current year activity. The Company is open to examination by the U.S. federal tax jurisdiction for the years ended December 31, 2018 through 2021, and is also open to examination for 2006 and forward with respect to net operating loss carryforwards generated and carried forward from those years in the United States. The Company is subject to taxation in various states, as well as in Canada, Ireland, and the United Kingdom, and may be subject to audit or examination by the relevant authorities in respect to those particular jurisdictions primarily for 2017 and thereafter. For the year ended December 31, 2021, the Company intends to invest substantially all of its foreign subsidiary earnings, as well as its capital in its foreign subsidiaries, indefinitely outside of the U.S. in those jurisdictions in which it would incur significant, additional costs upon repatriation of such amounts. A deferred tax liability related to taxes due upon repatriation to the U.S. has not been recorded. The Company is booking Global Intangible Low-Taxed Income ("GILTI") on a current basis and is not booking deferred taxes related to GILTI. 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 taxing 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, 2021 2020 2019 Balance, beginning of year $ 133 $ 113 $ 89 Increases (decreases) to tax positions related to prior periods — 15 19 Increases to tax positions related to the current year 5 5 5 Balance, end of year $ 138 $ 133 $ 113 |
Retirement Plan (Notes)
Retirement Plan (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee BenefitsThe 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 contributions to the 401(k) plan. |
Related Party Disclosures (Note
Related Party Disclosures (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties | 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 $2.7 million of expenses for consulting services provided by the investee related to pet acquisition during the years ended December 31, 2021 and 2020, recorded as new pet acquisition expense on the Company's consolidated statement of operations. |
Schedule 1-Parent Only Disclosu
Schedule 1-Parent Only Disclosures [Schedule] (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule 1 - Condensed Financial Information of Registrant | Trupanion, Inc. Condensed Statements of Operations and Comprehensive Loss (Parent Company Only, in thousands) Year Ended December 31, 2021 2020 2019 Expenses: Veterinary invoice expense $ 4,538 $ 1,118 $ 697 Other cost of revenue 2,610 468 353 Technology and development 3,130 1,087 904 General and administrative 11,714 7,055 5,944 New pet acquisition expense 9,177 2,799 2,137 Depreciation and amortization 473 328 211 Total expenses 31,642 12,855 10,246 Loss from investment in joint venture (33) (108) (205) Operating loss (31,675) (12,963) (10,451) Interest expense (2) 1,361 1,327 Other income, net (5,755) (4,845) (4,156) Loss before equity in undistributed earnings of subsidiaries (25,918) (9,479) (7,622) Income tax benefit 12,272 8,460 5,423 Equity (loss) in undistributed earnings of subsidiaries (21,884) (4,821) 390 Net loss $ (35,530) $ (5,840) $ (1,809) Other comprehensive income, net of taxes: Other comprehensive income of subsidiaries 6 2,821 1,003 Other comprehensive income 6 2,821 1,003 Comprehensive loss $ (35,524) $ (3,019) $ (806) Trupanion, Inc. Condensed Balance Sheets ( Parent Company Only) (In thousands, except share data) December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 33,957 $ 101,131 Accounts and other receivables 5,452 3,983 Prepaid expenses and other assets 591 463 Total current assets 40,000 105,577 Restricted cash 13,469 6,319 Property and equipment, net 904 680 Intangible assets, net 5,620 5,478 Other long-term assets 16,519 14,378 Advances to and investments in subsidiaries 257,197 209,031 Total assets $ 333,709 $ 341,463 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued liabilities, and other current liabilities $ 254 $ 253 Total current liabilities 254 253 Deferred tax liabilities 1,094 1,109 Other liabilities 162 162 Total liabilities 1,510 1,524 Stockholders’ equity: Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 41,408,350 and 40,475,185 shares issued and outstanding at December 31, 2021; 40,383,972 and 39,450,807 shares issued and outstanding at December 31, 2020 — — Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding — — Additional paid-in capital 466,792 439,007 Accumulated other comprehensive income (loss) 3,077 3,071 Accumulated deficit (126,890) (91,360) Treasury stock, at cost: 933,165 shares at December 31, 2021 and 2020 (10,779) (10,779) Total stockholders’ equity 332,200 339,939 Total liabilities and stockholders’ equity $ 333,710 $ 341,463 Trupanion, Inc. Condensed Statements of Cash Flows (Parent Company Only, in thousands) Year Ended December 31, 2021 2020 2019 Operating activities Net loss $ (35,530) $ (5,840) $ (1,809) Adjustments to reconcile net loss to cash provided by (used in) operating activities: (Income) loss attributable to investments in subsidiaries 17,501 170 (4,312) Depreciation and amortization 473 328 211 Stock-based compensation expense 28,226 8,912 6,846 Other, net (161) 240 48 Changes in operating assets and liabilities (1,219) (1,142) (601) Net cash provided by operating activities 9,290 2,668 383 Investing activities Cash paid in business acquisition, net of cash acquired — (48,133) — Purchases of property and equipment (280) (341) (728) Advances to and investments in subsidiaries (71,721) (24,885) (11,931) Dividends from subsidiaries 5,567 4,651 3,922 Other investments (1,755) — (7,019) Net cash used in investing activities (68,189) (68,708) (15,756) Financing activities Issuance of common stock, net of offering costs — 192,265 — Proceeds from exercise of stock options 3,607 6,013 2,982 Taxes paid related to net share settlement of equity awards (4,732) (1,115) (1,667) Proceeds from debt financing, net of financing fees — 6,213 13,167 Repayments of debt financing — (32,450) — Other financing — (78) — Net cash (used in) provided by financing activities (1,125) 170,848 14,482 Net change in cash, cash equivalents, and restricted cash (60,024) 104,808 (891) Cash, cash equivalents, and restricted cash at beginning of period 107,450 2,642 3,533 Cash, cash equivalents, and restricted cash at end of period $ 47,426 $ 107,450 $ 2,642 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 $5.6 million, $4.7 million and $3.9 million for the years ended December 31, 2021, 2020 and 2019, 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 Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, 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. 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 [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. |
Reclassification, Comparability Adjustment | ReclassificationsDepreciation and amortization expenses have been reclassified as a separate line item in the consolidated statement of operations since 2020 and prior period amounts have been reclassified from their original presentation to conform to the current period presentation. The Company has elected to present depreciation and amortization expenses as a separate line item to better align with management's view of the Company's operating results. |
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 required to maintain certain restricted cash balances to comply with insurance company regulations. As of December 31, 2021, the Company was in compliance with all requirements. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | 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. Accounts receivable balance is primarily related to the Company’s other business segment where the Company generates revenue from underwriting policies through unaffiliated general agents. These policies are typically annual policies, with monthly payment terms through the end of the twelve-month period. The Company had $159.4 million and $94.2 million accounts receivable associated with underwriting these policies as of December 31, 2021 and 2020, respectively. |
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 new pet acquisition expense or other cost of revenue. Deferred acquisition costs as of December 31, 2021 and 2020 were $4.3 million and $2.9 million, respectively. Amortized deferred acquisition costs classified within new pet acquisition expense amounted to $4.7 million, $3.2 million, and $2.5 million and amortized deferred acquisition costs classified within other cost of revenue amounted to $30.5 million, $23.2 million, and $19.2 million, for the years ended December 31, 2021, 2020, and 2019, respectively. |
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. 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 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 The Company's financial instruments, in addition to those presented in Note 8, 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, 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] | Goodwill and Intangible Assets Goodwill and indefinite-lived intangible assets are not amortized. The Company reviews these assets for impairment at least annually or if indicators of potential impairment exist. Acquired finite-lived intangibles are amortized on a straight-line basis over the estimated useful lives of the assets. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Asset Impairment Long-lived assets, including property, equipment, and intangible assets, 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, 2021, 2020, and 2019. |
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. As of each balance sheet date, the Company reevaluates its reserve and may adjust the estimate for new information. |
Deferred Revenue, Policy [Policy Text Block] | Deferred Revenue Deferred revenue is primarily related to the Company’s other business segment where the Company generates revenue from underwriting policies through unaffiliated general agents. These policies are typically annual policies, with monthly payment terms through the end of the twelve-month period. Deferred revenue also consists of subscription fees received or billed in advance of the subscription services within the Company's subscription business. |
Revenue Recognition, Policy [Policy Text Block] | 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. |
Cost of Sales, Policy [Policy Text Block] | 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 or paid. 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 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 and costs to administer the programs in the other business segment. |
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. It also includes expenses associated with development of new products and offerings. |
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. New Pet Acquisition Expense |
Nonoperating Income (Expense) | Other Income, NetOther income, net, was nil, $0.6 million, and $1.6 million, including interest income of $0.3 million, $0.6 million, and $1.7 million for the years ended December 31, 2021, 2020, and 2019, respectively. |
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 $23.6 million, $13.4 million and $7.8 million, in the years ended December 31, 2021, 2020 and 2019, respectively. |
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 Topic 14, Share-Based Payment; • 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. |
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. 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 Transactions and Translations Policy [Policy Text Block] | Foreign Currency TranslationThe 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 $(1.6) million, $(2.1) million, and $0.4 million were recorded in accumulated other comprehensive loss as of December 31, 2021, 2020, and 2019, respectively. |
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 2021, 2020, and 2019 was $112.0 million, $81.3 million and $67.5 million, respectively, and deferred revenue relating to this arrangement at December 31, 2021 and 2020 was $4.7 million and $3.6 million, respectively. Reinsurance revenue was 16%, 16%, and 18% of total revenue in 2021, 2020, and 2019, respectively. Cash designated for the purpose of paying claims related to this reinsurance agreement was $7.7 million and $6.5 million at December 31, 2021 and 2020, 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 120% of unearned Canadian premium plus 20% of outstanding Canadian claims, including all incurred but not reported claims. As of December 31, 2021, the account balance was CAD $7.7 million and the Company was in compliance with all requirements. The Company has not transferred any risk to third-party reinsurers. |
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. |
Other Investments details (Poli
Other Investments details (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 U.S.-based 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 $4.1 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, including accrued interest, was $4.5 million and $2.8 million as of December 31, 2021 and 2020, respectively. 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 $0.9 million and $1.2 million of these services for the years ended December 31, 2021 and 2020, respectively. |
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 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 December 31, 2021, the Company has contributed $0.8 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) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure | The Company's other long-term assets balance included notes receivable of $7.6 million and $6.1 million as of December 31, 2021 and 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 year ended December 31, 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 years ended December 31, 2021 and 2020. |
Segment Reporting (Policies)
Segment Reporting (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting, Policy | 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 new pet acquisition 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. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 share of common stock calculation because they would have had an antidilutive effect: As of December 31, 2021 2020 2019 Stock options 807,205 1,459,290 2,097,978 Restricted stock awards and restricted stock units 1,087,627 782,755 581,943 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination, Separately Recognized Transactions | 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 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Land and improvements $ 15,911 $ 15,854 Building and improvements 48,547 46,682 Software 37,984 27,707 Office equipment and other 6,258 4,146 Construction in progress 540 2,855 Property and equipment, at cost 109,240 97,244 Less: Accumulated depreciation (31,290) (24,642) Property and equipment, net $ 77,950 $ 72,602 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents the detail of intangible assets other than goodwill for the periods presented (in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2021: Licenses $ 4,773 $ — $ 4,773 Leases 2,959 (2,539) 420 Trade name 1,373 (160) 1,213 Developed technologies 11,516 (2,721) 8,795 Customer relationships 7,589 (1,771) 5,818 Patents, trademarks, and other 2,373 (729) 1,644 Total Intangibles $ 30,583 $ (7,920) $ 22,663 December 31, 2020: Licenses $ 4,773 $ — $ 4,773 Leases 2,959 (2,213) 746 Trade name 1,387 (23) 1,364 Developed technologies 11,512 (352) 11,160 Customer relationships 7,667 (256) 7,411 Patents, trademarks, and other 2,037 (357) 1,680 Total Intangibles $ 30,335 $ (3,201) $ 27,134 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2021, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows (in thousands): Year ending December 31: 2022 $ 4,775 2023 4,411 2024 3,988 2025 3,293 2026 163 Thereafter 733 Total $ 17,363 |
Investment Securities Available
Investment Securities Available-for-Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on 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 December 31, 2021 and 2020 (in thousands): Amortized Gross Gross Fair As of December 31, 2021 Long-term investments: Foreign deposits $ 6,050 $ — $ — $ 6,050 Municipal bond 1,000 11 — 1,011 $ 7,050 $ 11 $ — $ 7,061 Short-term investments: U.S. Treasury securities $ 8,671 $ — $ (9) $ 8,662 Certificates of deposit 3,295 — — 3,295 U.S. government funds 114,046 — — 114,046 $ 126,012 $ — $ (9) $ 126,003 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): December 31, 2021 Amortized Fair Available-for-sale: Due after one year through five years $ 7,050 $ 7,061 $ 7,050 $ 7,061 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Fair Value Level 1 Level 2 Level 3 Assets Money market funds 32,255 32,255 — — Fixed maturities: Foreign deposits 6,050 6,050 — — Municipal bond 1,011 — 1,011 — Preferred shares in variable interest entity 8,442 — — 8,442 Total $ 47,758 $ 38,305 $ 1,011 $ 8,442 As of December 31, 2020 Fair Value Level 1 Level 2 Level 3 Assets Money market funds 99,054 99,054 — — Fixed maturities: Foreign deposits 4,564 4,564 — — Municipal bond 1,002 — 1,002 — Preferred shares in variable interest entity 7,949 — — 7,949 Total $ 112,569 $ 103,618 $ 1,002 $ 7,949 |
Claims Reserve (Tables)
Claims Reserve (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, Subscription 2021 2020 2019 Reserve at beginning of year $ 19,925 $ 15,541 $ 13,875 Veterinary invoice expense during the period related to: Current year 357,859 278,776 231,831 Prior years (1,411) 229 585 Total veterinary invoice expense 356,448 279,005 232,416 Amounts paid during the period related to: Current year 333,182 259,971 217,538 Prior years 16,109 13,387 12,494 Total paid 349,291 273,358 230,032 Non-cash expenses 4,675 1,263 718 Reserve at end of period $ 22,407 $ 19,925 $ 15,541 The Company's reserve for the subscription business segment increased $2.5 million from $19.9 million at December 31, 2020 to $22.4 million at December 31, 2021. This change was comprised of $356.4 million in expense recorded during the period less $349.3 million in payments of veterinary invoices. This $356.4 million in veterinary invoice expense incurred included a reduction of $1.4 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 an increase of $0.2 million and $0.6 million as a result of analysis of payment trends in the years ended December 31, 2020 and 2019, respectively. Summarized below are the changes in total liability for the Company's other business segment (in thousands): Year Ended December 31, Other Business 2021 2020 2019 Reserve at beginning of year $ 9,004 $ 5,653 $ 2,187 Veterinary invoice expense during the period related to: Current year 129,826 72,286 38,881 Prior years (212) (167) (350) Total veterinary invoice expense 129,614 72,119 38,531 Amounts paid during the period related to: Current year 112,574 63,359 33,254 Prior years 8,780 5,409 1,811 Total paid 121,354 68,768 35,065 Non-cash expenses — — — Reserve at end of period $ 17,264 $ 9,004 $ 5,653 The Company’s reserve for the other business segment increased $8.3 million from $9.0 million at December 31, 2020 to $17.3 million at December 31, 2021. This change was comprised of $129.6 million in expense recorded during the period less $121.4 million in payments of veterinary invoices. This $129.6 million in veterinary invoice expense incurred included a reduction of $0.2 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 $0.4 million as a result of analysis of payment trends in each of the years ended December 31, 2020 and 2019, respectively. |
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 2018 2019 2020 2021 2021 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 191,211 $ 191,696 $ 191,792 $ 191,302 $ — 886,880 2019 $ 233,629 $ 234,006 $ 233,824 $ 664 1,054,693 2020 $ 281,272 $ 280,343 $ 1,741 1,179,573 2021 $ 356,725 $ 20,002 1,348,961 $ 1,062,194 $ 22,407 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 2018 2019 2020 2021 2021 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 23,786 $ 23,375 $ 23,470 $ 23,440 $ — 175,091 2019 $ 38,885 $ 38,610 $ 38,682 $ — 282,499 2020 $ 72,297 $ 72,035 $ 12 532,306 2021 $ 129,822 $ 17,252 843,354 $ 263,979 $ 17,264 |
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 2018 2019 2020 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 178,570 $ 190,327 $ 191,090 $ 191,302 2019 $ 220,013 $ 232,326 $ 233,159 2020 $ 263,729 $ 278,602 2021 $ 336,724 $ 1,039,787 Total amounts unpaid and recorded as a liability $ 22,407 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 2018 2019 2020 2021 Year of Occurrence (unaudited) (unaudited) (unaudited) 2018 $ 21,617 $ 23,355 $ 23,425 $ 23,440 2019 $ 33,258 $ 38,578 $ 38,682 2020 $ 63,371 $ 72,023 2021 $ 112,570 $ 246,715 Total amounts unpaid and recorded as a liability $ 17,264 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation expense recognized in each category of the consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019 was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Veterinary invoice expense $ 4,538 $ 1,118 $ 697 Other cost of revenue 2,610 468 353 Technology and development 3,056 758 364 General and administrative 8,862 3,795 3,312 New pet acquisition expense 9,160 2,773 2,120 Total expensed stock-based compensation 28,226 8,912 6,846 Capitalized stock-based compensation 676 235 204 Total stock-based compensation $ 28,902 $ 9,147 $ 7,050 |
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 new stock options during the years ended December 31, 2021, 2020, and 2019. |
Schedule of Share-based Compensation, Stock Options, Activity | The following table presents information regarding stock options granted, exercised and forfeited for the periods presented: Number Weighted Average Aggregate Outstanding as of January 1, 2019 2,621,503 $ 9.01 $ 43,136 Granted — — — Exercised (510,268) 5.28 13,151 Forfeited (13,257) 18.23 — Outstanding as of December 31, 2019 2,097,978 9.86 57,907 Granted — — — Exercised (626,554) 9.54 35,696 Forfeited (12,134) 17.41 — Outstanding as of December 31, 2020 1,459,290 9.93 160,200 Granted — — — Exercised (647,164) 5.59 58,200 Forfeited (4,921) 13.66 — Outstanding as of December 31, 2021 807,205 13.39 95,765 Exercisable at December 31, 2021 807,205 $ 13.39 $ 95,765 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | The fair value of options vested were as follows for the years ended December 31, 2021, 2020, and 2019. The Company didn't grant any stock options in these three years. Weighted Average Grant Date Fair Value per Share Fair Value of Options Vested Year: 2019 $ — $ 1,591 2020 $ — $ 1,105 2021 $ — $ 313 |
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, 2021, 2020 and 2019: Number of Weighted Average Unvested shares as of January 1, 2019 451,160 $ 22.16 Granted 459,523 30.03 Vested (276,184) 18.20 Forfeited (52,556) 29.85 Unvested shares as of December 31, 2019 581,943 29.56 Granted 535,184 37.60 Vested (266,640) 29.77 Forfeited (67,732) 31.51 Unvested shares as of December 31, 2020 782,755 34.81 Granted 787,730 101.32 Vested (426,725) 40.10 Forfeited (56,133) 72.93 Unvested shares as of December 31, 2021 1,087,627 $ 78.94 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | The following table summarizes the Company's future rental payments to be received from non-cancellable leases in place as of December 31, 2021 (in thousands): Year ending December 31: 2022 $ 1,173 2023 669 2024 163 2025 168 2026 100 Thereafter — Total rental payments $ 2,273 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2021 2020 2019 Subscription business: Revenue $ 494,862 $ 387,732 $ 321,163 Veterinary invoice expense 356,448 279,005 232,415 Other cost of revenue 51,216 35,870 29,724 Technology and development 11,942 7,673 5,879 General and administrative 22,579 16,866 15,397 New pet acquisition expense 78,148 47,017 35,037 Depreciation and amortization 8,494 5,451 4,725 Subscription business operating loss (33,965) (4,150) (2,014) Other business: Revenue 204,129 114,296 62,773 Veterinary invoice expense 129,614 72,119 38,532 Other cost of revenue 57,367 33,133 18,341 Technology and development 4,924 2,274 1,146 General and administrative 9,314 4,981 2,987 New pet acquisition expense 499 820 414 Depreciation and amortization 3,471 1,620 907 Other business operating income (loss) (1,060) (651) 446 Loss from investment in joint venture (171) (126) (352) Total operating loss $ (35,196) $ (4,927) $ (1,920) |
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, 2021 2020 2019 United States $ 580,966 $ 419,162 $ 316,138 Canada and other 118,025 82,866 67,798 Total revenue $ 698,991 $ 502,028 $ 383,936 |
Dividend Restrictions Statuto_2
Dividend Restrictions Statutory Surplus (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure [Table Text Block] | The statutory net income for 2021, 2020 and 2019 and statutory capital and surplus at December 31, 2021, 2020 and 2019, for the Company’s insurance subsidiary in New York were as follows (in thousands): As of December 31, 2021 2020 2019 Statutory net income $ 24,409 $ 17,547 $ 16,311 Statutory capital and surplus $ 124,189 $ 93,171 $ 73,810 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 (in thousands): Year Ended December 31, 2021 2020 2019 United States $ (34,052) $ (5,408) $ (1,783) Foreign (1,168) (319) 143 $ (35,220) $ (5,727) $ (1,640) |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Current: U.S. federal & state $ 58 $ 198 $ 12 Foreign 2,066 45 52 2,124 243 64 Deferred: U.S. federal & state (15) (9) 116 Foreign (1,799) (121) (11) (1,814) (130) 105 Income tax expense (benefit) $ 310 $ 113 $ 169 |
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, 2021 2020 2019 Federal income taxes at statutory rate 21.0 % 21.0 % 21.0 % U.S. state income taxes 7.5 (2.6) (7.8) Equity compensation 30.4 122.3 177.2 Change in valuation allowance (58.4) (136.0) (184.2) Nondeductible fines and settlements (0.2) (1.1) (9.2) Other, net (1.5) (3.0) (16.5) Credits 0.3 (2.6) 9.2 Effective income tax rate (0.9) % (2.0) % (10.3) % |
Schedule of Deferred Tax Assets and Liabilities | The principal components of the Company’s deferred tax assets and liabilities were as follows (in thousands): As of December 31, 2021 2020 Deferred tax assets: Deferred revenue $ 6,232 $ 3,921 Accruals and reserves 2,294 1,822 Net operating loss carryforwards 52,796 37,070 Depreciation and amortization 833 27 Equity compensation 4,126 1,776 Credits 847 697 Other 381 706 Total deferred tax assets 67,509 46,019 Deferred tax liabilities: Deferred costs (887) (637) Intangible assets (2,802) (4,895) Other (1,817) (960) Total deferred tax liabilities (5,506) (6,492) Total deferred taxes 62,003 39,527 Less deferred tax asset valuation allowance (64,791) (44,194) Net deferred tax liability $ (2,788) $ (4,667) |
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, 2021 2020 2019 Balance, beginning of year $ 133 $ 113 $ 89 Increases (decreases) to tax positions related to prior periods — 15 19 Increases to tax positions related to the current year 5 5 5 Balance, end of year $ 138 $ 133 $ 113 |
SEC Schedule, Article 12-04, Co
SEC Schedule, Article 12-04, Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statement of Comprehensive Income | Trupanion, Inc. Condensed Statements of Operations and Comprehensive Loss (Parent Company Only, in thousands) Year Ended December 31, 2021 2020 2019 Expenses: Veterinary invoice expense $ 4,538 $ 1,118 $ 697 Other cost of revenue 2,610 468 353 Technology and development 3,130 1,087 904 General and administrative 11,714 7,055 5,944 New pet acquisition expense 9,177 2,799 2,137 Depreciation and amortization 473 328 211 Total expenses 31,642 12,855 10,246 Loss from investment in joint venture (33) (108) (205) Operating loss (31,675) (12,963) (10,451) Interest expense (2) 1,361 1,327 Other income, net (5,755) (4,845) (4,156) Loss before equity in undistributed earnings of subsidiaries (25,918) (9,479) (7,622) Income tax benefit 12,272 8,460 5,423 Equity (loss) in undistributed earnings of subsidiaries (21,884) (4,821) 390 Net loss $ (35,530) $ (5,840) $ (1,809) Other comprehensive income, net of taxes: Other comprehensive income of subsidiaries 6 2,821 1,003 Other comprehensive income 6 2,821 1,003 Comprehensive loss $ (35,524) $ (3,019) $ (806) |
Condensed Balance Sheet | Trupanion, Inc. Condensed Balance Sheets ( Parent Company Only) (In thousands, except share data) December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 33,957 $ 101,131 Accounts and other receivables 5,452 3,983 Prepaid expenses and other assets 591 463 Total current assets 40,000 105,577 Restricted cash 13,469 6,319 Property and equipment, net 904 680 Intangible assets, net 5,620 5,478 Other long-term assets 16,519 14,378 Advances to and investments in subsidiaries 257,197 209,031 Total assets $ 333,709 $ 341,463 Liabilities and stockholders’ equity Current liabilities: Accounts payable, accrued liabilities, and other current liabilities $ 254 $ 253 Total current liabilities 254 253 Deferred tax liabilities 1,094 1,109 Other liabilities 162 162 Total liabilities 1,510 1,524 Stockholders’ equity: Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 41,408,350 and 40,475,185 shares issued and outstanding at December 31, 2021; 40,383,972 and 39,450,807 shares issued and outstanding at December 31, 2020 — — Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding — — Additional paid-in capital 466,792 439,007 Accumulated other comprehensive income (loss) 3,077 3,071 Accumulated deficit (126,890) (91,360) Treasury stock, at cost: 933,165 shares at December 31, 2021 and 2020 (10,779) (10,779) Total stockholders’ equity 332,200 339,939 Total liabilities and stockholders’ equity $ 333,710 $ 341,463 |
Condensed Cash Flow Statement | Trupanion, Inc. Condensed Statements of Cash Flows (Parent Company Only, in thousands) Year Ended December 31, 2021 2020 2019 Operating activities Net loss $ (35,530) $ (5,840) $ (1,809) Adjustments to reconcile net loss to cash provided by (used in) operating activities: (Income) loss attributable to investments in subsidiaries 17,501 170 (4,312) Depreciation and amortization 473 328 211 Stock-based compensation expense 28,226 8,912 6,846 Other, net (161) 240 48 Changes in operating assets and liabilities (1,219) (1,142) (601) Net cash provided by operating activities 9,290 2,668 383 Investing activities Cash paid in business acquisition, net of cash acquired — (48,133) — Purchases of property and equipment (280) (341) (728) Advances to and investments in subsidiaries (71,721) (24,885) (11,931) Dividends from subsidiaries 5,567 4,651 3,922 Other investments (1,755) — (7,019) Net cash used in investing activities (68,189) (68,708) (15,756) Financing activities Issuance of common stock, net of offering costs — 192,265 — Proceeds from exercise of stock options 3,607 6,013 2,982 Taxes paid related to net share settlement of equity awards (4,732) (1,115) (1,667) Proceeds from debt financing, net of financing fees — 6,213 13,167 Repayments of debt financing — (32,450) — Other financing — (78) — Net cash (used in) provided by financing activities (1,125) 170,848 14,482 Net change in cash, cash equivalents, and restricted cash (60,024) 104,808 (891) Cash, cash equivalents, and restricted cash at beginning of period 107,450 2,642 3,533 Cash, cash equivalents, and restricted cash at end of period $ 47,426 $ 107,450 $ 2,642 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies Narrative (Details) $ in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021CAD ($) | |
Accounting Policies [Abstract] | |||||
Accounts Receivable, Unaffiliated General Agents | $ 159,400 | $ 94,200 | |||
Deferred Policy Acquisition Costs | 4,300 | 2,900 | |||
Realized Investment Gains (Losses) | 0 | 0 | $ 0 | ||
Impairment, Amount, License Intangibles | 0 | 0 | 0 | ||
Other expense (income), net | 14 | (581) | (1,629) | ||
Interest Income, Other | 300 | 600 | 1,700 | ||
Advertising Expense | 23,600 | 13,400 | 7,800 | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (1,600) | (2,100) | 400 | ||
Premiums Recognized from Fronting Agreement | 112,000 | 81,300 | $ 67,500 | ||
Deferred Revenue from Fronting Agreement | 4,700 | 3,600 | |||
Cash Designated for Paying Reinsurance Claims | $ 7,700 | $ 6,500 | |||
Reinsurance Trust Minimum Payment | $ 2 | ||||
Reinsurance Trust Payment Unearned Premium Percentage | 120.00% | 120.00% | |||
Reinsurance Payment of Percentage of Canadian Claims outstanding | 20.00% | 20.00% | |||
Reinsurance Trust Balance | $ 7.7 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies Deferred Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Selling and Marketing Expense [Member] | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters, Amortization of Deferred Policy Acquisition Cost | $ 4.7 | $ 3.2 | $ 2.5 |
Cost of Sales [Member] | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters, Amortization of Deferred Policy Acquisition Cost | $ 30.5 | $ 23.2 | $ 19.2 |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies Concentration Risks (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurer Concentration Risk [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | Reinsurance Recoverable Including Reinsurance Premium Paid [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 16.00% | 18.00% |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies Property, Plant, and Equipment, Useful Life (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 |
Net Loss per Share (Details) Sc
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 807,205 | 1,459,290 | 2,097,978 |
Restricted stock awards and restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,087,627 | 782,755 | 581,943 |
Business Combinations, Narrativ
Business Combinations, Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Business Combinations [Abstract] | |
Business Combination, Consideration Transferred | $ 48,295 |
Business Acquisition, Transaction Costs | $ 500 |
Business Combinations, Aquarium
Business Combinations, Aquarium Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2021 | Oct. 30, 2020 | |
Business Combination and Asset Acquisition [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 1,469 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 171 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 19,512 | ||
Goodwill | $ 33,045 | $ 32,709 | 31,352 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,421 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (1,269) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ (4,361) | ||
Business Combination, Consideration Transferred | $ 48,295 |
Property Plant and Equipment (D
Property Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Construction in Progress, Gross | $ 540 | $ 2,855 | |
Property, Plant and Equipment, Gross | 109,240 | 97,244 | |
Less: Accumulated depreciation | (31,290) | (24,642) | |
Property and equipment, net | 77,950 | 72,602 | |
Depreciation expense | 7,100 | 5,200 | $ 4,700 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 15,911 | 15,854 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 48,547 | 46,682 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 37,984 | 27,707 | |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 6,258 | $ 4,146 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived License Agreements | $ 4,773 | $ 4,773 |
Finite-Lived Intangible Asset, Acquired-in-Place Leases | 2,959 | 2,959 |
Finite-Lived Trade Names, Gross | 1,373 | 1,387 |
Finite-Lived Developed Technologies, Gross | 11,516 | 11,512 |
Finite-Lived Customer Relationships, Gross | 7,589 | 7,667 |
Finite-Lived Patents, Gross | 2,373 | 2,037 |
Intangible Assets, Gross (Excluding Goodwill) | 30,583 | 30,335 |
Finite-Lived Intangible Assets, Accumulated Amortization | (7,920) | (3,201) |
Intangible assets, net | 22,663 | 27,134 |
Leases, Acquired-in-Place [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (2,539) | (2,213) |
Intangible assets, net | 420 | 746 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (160) | (23) |
Intangible assets, net | 1,213 | 1,364 |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (2,721) | (352) |
Intangible assets, net | 8,795 | 11,160 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (1,771) | (256) |
Intangible assets, net | 5,818 | 7,411 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (729) | (357) |
Intangible assets, net | $ 1,644 | $ 1,680 |
Intangible Assets, Narrative (D
Intangible Assets, Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 32,709,000 | $ 33,045,000 | $ 31,352,000 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (300,000) | |||
Indefinite-Lived License Agreements | $ 4,773,000 | 4,773,000 | ||
Intangible Asset, Useful Life | 1 year 4 months 24 days | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 1 month 6 days | |||
Patents, trademarks, and other intangible assets, weighted average useful life | 5 years | |||
Amortization of Intangible Assets | $ 4,900,000 | $ 1,900,000 | $ 900,000 |
Intangible Assets, Expected Amo
Intangible Assets, Expected Amortization (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Current | $ 4,775 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 4,411 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 3,988 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 3,293 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 163 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 733 |
Operating Leases, Future Minimum Payments Receivable | $ 17,363 |
Investment Securities (Details)
Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Debt Securities, Available-for-sale | $ 7,050 | $ 5,564 |
Debt Securities, Held-to-maturity, Amortized Cost | 126,012 | 89,862 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 11 | 2 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 9 | 2 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 7,061 | 5,566 |
Debt Securities, Held-to-maturity, Fair Value | 126,003 | 89,860 |
Deposits [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Available-for-sale | 6,050 | 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 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 6,050 | 4,564 |
Municipal Bonds [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Available-for-sale | 1,000 | 1,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 11 | 2 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 1,011 | 1,002 |
US Treasury Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Held-to-maturity, Amortized Cost | 8,671 | 6,494 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | 9 | 2 |
Debt Securities, Held-to-maturity, Fair Value | 8,662 | 6,492 |
Certificates of Deposit [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Held-to-maturity, Amortized Cost | 3,295 | 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 | 3,295 | 1,696 |
US Government Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Debt Securities, Held-to-maturity, Amortized Cost | 114,046 | 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 | $ 114,046 | $ 81,672 |
Investment Securities (Detail_2
Investment Securities (Details) Available-for-Sale $ in Thousands | Dec. 31, 2021USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale securities, due after one year through five years, amortized cost basis | $ 7,050 |
Available-for-sale securities, due after one year through five years, fair value | 7,061 |
Available-for-sale securities, amortized cost | 7,050 |
Available-for-sale securities, fair value | $ 7,061 |
Other Investments (Details)
Other Investments (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021AUD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Other Investments [Abstract] | ||||
Purchase of Equity Interest | $ 7 | |||
Increase (Decrease) in Notes Receivables | $ 4.1 | |||
Line of Credit outstanding balance, Variable Interest Entity | 4.5 | $ 2.8 | ||
Services performed for Variable Interest Entity | $ 0.9 | $ 1.2 | ||
Other Commitment | $ 2.2 | |||
Payments to Acquire Interest in Joint Venture | $ 0.8 |
Fair Value (Details) Unobservab
Fair Value (Details) Unobservable - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | $ 7,061 | $ 5,566 |
Noncontrolling Interest in Variable Interest Entity | 8,442 | 7,949 |
Assets, Fair Value Disclosure | 47,758 | 112,569 |
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 | 38,305 | 103,618 |
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 | 1,011 | 1,002 |
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 | 8,442 | 7,949 |
Assets, Fair Value Disclosure | 8,442 | 7,949 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 32,255 | 99,054 |
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 | 32,255 | 99,054 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 6,050 | 4,564 |
Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 6,050 | 4,564 |
Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 0 | 0 |
Deposits [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 0 | 0 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 1,011 | 1,002 |
Municipal Bonds [Member] | 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 Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 1,011 | 1,002 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | $ 0 | $ 0 |
Fair Value Narrative (Details)
Fair Value Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||
Noncontrolling Interest in Variable Interest Entity | $ 8,442 | $ 7,949 | |
Notes Receivable, Fair Value Disclosure | 7,600 | 6,100 | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 502 | 325 | $ 644 |
Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | $ 500 | $ 300 |
Claims Reserve (Details)
Claims Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Subscription business [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Claims reserve at beginning of year | $ 19,925 | $ 15,541 | $ 13,875 |
Current Year Claims and Claims Adjustment Expense | 357,859 | 278,776 | 231,831 |
Prior Year Claims and Claims Adjustment Expense | (1,411) | 229 | 585 |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 356,448 | 279,005 | 232,416 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 333,182 | 259,971 | 217,538 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 16,109 | 13,387 | 12,494 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 349,291 | 273,358 | 230,032 |
Claims expense non-cash | 4,675 | 1,263 | 718 |
Claims reserve at end of year | 22,407 | 19,925 | 15,541 |
Change in Liability for Unpaid Claims and Claims Adjustment Expense, Net | 2,500 | ||
Other Segments [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Claims reserve at beginning of year | 9,004 | 5,653 | 2,187 |
Current Year Claims and Claims Adjustment Expense | 129,826 | 72,286 | 38,881 |
Prior Year Claims and Claims Adjustment Expense | (212) | (167) | (350) |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 129,614 | 72,119 | 38,531 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year | 112,574 | 63,359 | 33,254 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 8,780 | 5,409 | 1,811 |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 121,354 | 68,768 | 35,065 |
Claims expense non-cash | 0 | 0 | 0 |
Claims reserve at end of year | 17,264 | $ 9,004 | $ 5,653 |
Change in Liability for Unpaid Claims and Claims Adjustment Expense, Net | $ 8,300 |
Claims Reserve Cumulative claim
Claims Reserve Cumulative claims paid and claims adjustment expenses (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Subscription business [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 1,062,194 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 22,407 | |||
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 191,302 | $ 191,792 | $ 191,696 | $ 191,211 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 886,880 | |||
Subscription business [Member] | Short-Duration Insurance Contract, Accident Year 2019 | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 233,824 | 234,006 | 233,629 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 664 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,054,693 | |||
Subscription business [Member] | Short-Duration Insurance Contract, Accident Year 2020 | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 280,343 | 281,272 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,741 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,179,573 | |||
Subscription business [Member] | Short-Duration Insurance Contract, Accident Year 2021 | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 356,725 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 20,002 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,348,961 | |||
Other Segments [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 263,979 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | 17,264 | |||
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | 23,440 | 23,470 | 23,375 | $ 23,786 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 175,091 | |||
Other Segments [Member] | Short-Duration Insurance Contract, Accident Year 2019 | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 38,682 | 38,610 | $ 38,885 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 282,499 | |||
Other Segments [Member] | Short-Duration Insurance Contract, Accident Year 2020 | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 72,035 | $ 72,297 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 12 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 532,306 | |||
Other Segments [Member] | Short-Duration Insurance Contract, Accident Year 2021 | ||||
Claims Development [Line Items] | ||||
Short-duration Insurance Contracts, Incurred Claims and Allocated Claim Adjustment Expense, Net | $ 129,822 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 17,252 | |||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 843,354 |
Claims Reserve Incurred claims
Claims Reserve Incurred claims and claim adjustment expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
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 | $ 1,039,787 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 22,407 | $ 19,925 | $ 15,541 | $ 13,875 |
Subscription business [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 191,302 | 191,090 | 190,327 | 178,570 |
Subscription business [Member] | Short-Duration Insurance Contract, Accident Year 2019 | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 233,159 | 232,326 | 220,013 | |
Subscription business [Member] | Short-Duration Insurance Contract, Accident Year 2020 | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 278,602 | 263,729 | ||
Subscription business [Member] | Short-Duration Insurance Contract, Accident Year 2021 | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 336,724 | |||
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 | 246,715 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 17,264 | 9,004 | 5,653 | 2,187 |
Other Segments [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 23,440 | 23,425 | 23,355 | $ 21,617 |
Other Segments [Member] | Short-Duration Insurance Contract, Accident Year 2019 | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 38,682 | 38,578 | $ 33,258 | |
Other Segments [Member] | Short-Duration Insurance Contract, Accident Year 2020 | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 72,023 | $ 63,371 | ||
Other Segments [Member] | Short-Duration Insurance Contract, Accident Year 2021 | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 112,570 |
Stock-based Compensation Expens
Stock-based Compensation Expense Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-based Compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award, Capitalized Cost | $ 676 | $ 235 | $ 204 |
Total stock-based compensation | 28,902 | 9,147 | 7,050 |
Claims expenses | |||
Stock-based Compensation | |||
Total stock-based compensation | 4,538 | 1,118 | 697 |
Other cost of revenue | |||
Stock-based Compensation | |||
Total stock-based compensation | 2,610 | 468 | 353 |
Technology and development | |||
Stock-based Compensation | |||
Total stock-based compensation | 3,056 | 758 | 364 |
General and administrative | |||
Stock-based Compensation | |||
Total stock-based compensation | 8,862 | 3,795 | 3,312 |
Sales and marketing | |||
Stock-based Compensation | |||
Total stock-based compensation | 9,160 | 2,773 | 2,120 |
Total Expense [Member] | |||
Stock-based Compensation | |||
Total stock-based compensation | $ 28,226 | $ 8,912 | $ 6,846 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) Narrative $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, weighted average remaining contractual term | 4 years 2 months 12 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 2 months 12 days |
Restricted stock awards and restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock, outstanding | shares | 1,087,627 |
Compensation cost not yet recognized | $ | $ 71.6 |
Weighted average remaining vesting period | 2 years 9 months 18 days |
Stock-based Compensation Option
Stock-based Compensation Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||||
Beginning balance | 1,459,290 | 2,097,978 | 2,621,503 | |
Granted | 0 | 0 | 0 | |
Exercised | 647,164 | 626,554 | 510,268 | |
Forfeited | 4,921 | 12,134 | 13,257 | |
Ending Balance | 807,205 | 1,459,290 | 2,097,978 | |
Exercisable at December 31, 2021 | 807,205 | |||
Weighted Average Exercise Price per Share | ||||
Beginning Balance (usd per share) | $ 9.93 | $ 9.86 | $ 9.01 | |
Granted (usd per share) | 0 | 0 | 0 | |
Exercised (usd per share) | 5.59 | 9.54 | 5.28 | |
Forfeited (usd per share) | 13.66 | 17.41 | 18.23 | |
Ending Balance (usd per share) | 13.39 | $ 9.93 | $ 9.86 | |
Vested and exercisable at December 31, 2014 (usd per share) | $ 13.39 | |||
Aggregate Intrinsic Value (in thousands) | ||||
Outstanding | $ 95,765 | $ 160,200 | $ 57,907 | $ 43,136 |
Exercised | 58,200 | $ 35,696 | $ 13,151 | |
Exercisable at December 31, 2021 | $ 95,765 |
Stock-based Compensation Opti_2
Stock-based Compensation Options Granted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
WEIGHTED-AVERAGE GRANT DATE FAIR VALUE | $ 0 | $ 0 | $ 0 |
Fair Value of Options Vested (in thousands) | $ 313 | $ 1,105 | $ 1,591 |
Stock-based Compensation Restri
Stock-based Compensation Restricted Stock Awards (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance | 782,755 | 581,943 | 451,160 |
Granted | 787,730 | 535,184 | 459,523 |
Vested | (426,725) | (266,640) | (276,184) |
Forfeited | (56,133) | (67,732) | (52,556) |
Ending balance | 1,087,627 | 782,755 | 581,943 |
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) | $ 34.81 | $ 29.56 | $ 22.16 |
Restricted stock awards granted (usd per share) | 101.32 | 37.60 | 30.03 |
Awards upon which restrictions lapsed (usd per share) | 40.10 | 29.77 | 18.20 |
Restricted stock awards forfeited (usd per share) | 72.93 | 31.51 | 29.85 |
Ending balance (usd per share) | $ 78.94 | $ 34.81 | $ 29.56 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 0.8 | $ 0.9 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Operating Lease, Expense | $ 0.2 | $ 0.2 | $ 0.4 |
Proceeds from Rents Received | $ 1.1 | $ 1.9 | $ 2.2 |
Leases, Future Rental Payments
Leases, Future Rental Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Lessor, Operating Lease, Payment to be Received, Year One | $ 1,173 |
Lessor, Operating Lease, Payment to be Received, Year Two | 669 |
Lessor, Operating Lease, Payment to be Received, Year Three | 163 |
Lessor, Operating Lease, Payment to be Received, Year Four | 168 |
Lessor, Operating Lease, Payment to be Received, Year Five | 100 |
Lessor, Operating Lease, Payment to be Received, after Year Five | 0 |
Lessor, Operating Lease, Payments to be Received, Total | $ 2,273 |
Stockholder's Equity Narrative
Stockholder's Equity Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | |
Common Stock, Shares, Outstanding | 40,475,185 | 39,450,807 | |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Issuance of common stock from private placement (in shares) | 3,636,364 | ||
Issuance of common stock, net of offering costs | $ 0 | $ 192,265 | $ 0 |
Segments (Details) Business Seg
Segments (Details) Business Segment - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 698,991 | $ 502,028 | $ 383,936 |
Veterinary invoice expense | 486,062 | 351,124 | 270,947 |
Other cost of revenue | 108,583 | 69,003 | 48,065 |
Technology and development | 16,866 | 9,947 | 7,025 |
General and administrative | 31,893 | 21,847 | 18,384 |
New pet acquisition expense | 78,647 | 47,837 | 35,451 |
Loss from investment in joint venture | (171) | (126) | (352) |
Operating loss | (35,196) | (4,927) | (1,920) |
Subscription business | |||
Segment Reporting Information [Line Items] | |||
Revenue | 494,862 | 387,732 | 321,163 |
Veterinary invoice expense | 356,448 | 279,005 | 232,415 |
Other cost of revenue | 51,216 | 35,870 | 29,724 |
Technology and development | 11,942 | 7,673 | 5,879 |
General and administrative | 22,579 | 16,866 | 15,397 |
New pet acquisition expense | 78,148 | 47,017 | 35,037 |
Depreciation and amortization | 8,494 | 5,451 | 4,725 |
Operating loss | (33,965) | (4,150) | (2,014) |
Other business | |||
Segment Reporting Information [Line Items] | |||
Revenue | 204,129 | 114,296 | 62,773 |
Veterinary invoice expense | 129,614 | 72,119 | 38,532 |
Other cost of revenue | 57,367 | 33,133 | 18,341 |
Technology and development | 4,924 | 2,274 | 1,146 |
General and administrative | 9,314 | 4,981 | 2,987 |
New pet acquisition expense | 499 | 820 | 414 |
Depreciation and amortization | 3,471 | 1,620 | 907 |
Operating loss | $ (1,060) | $ (651) | $ 446 |
Segments (Details) Revenue by G
Segments (Details) Revenue by Geography - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 698,991 | $ 502,028 | $ 383,936 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 580,966 | 419,162 | 316,138 |
Canada and other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 118,025 | $ 82,866 | $ 67,798 |
Dividend Restrictions Statuto_3
Dividend Restrictions Statutory Surplus (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | |||
Deposit Assets | $ 9,200 | ||
American Pet Insurance Company (APIC) [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | 200 | ||
Statutory Accounting Practices, Statutory Net Income Amount | 24,409 | $ 17,547 | $ 16,311 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 124,189 | 93,171 | 73,810 |
Statutory Accounting Practices, Statutory Capital and Surplus Required | 116,000 | ||
Wyndham Insurance Company (SAC) Limited [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Dividends from subsidiaries | 5,600 | $ 4,700 | $ 3,900 |
ZPIC Insurance Company (ZPIC) [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 7,800 | ||
QPIC Insurance Company (QPIC) [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 7,800 |
Income Taxes Income before taxe
Income Taxes Income before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (34,052) | $ (5,408) | $ (1,783) |
Foreign | (1,168) | (319) | 143 |
Loss before income taxes | $ (35,220) | $ (5,727) | $ (1,640) |
Income Taxes Income tax benefit
Income Taxes Income tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal & state | $ 58 | $ 198 | $ 12 |
Foreign | 2,066 | 45 | 52 |
Current income tax expense (benefit) | 2,124 | 243 | 64 |
U.S. federal & state | (15) | (9) | 116 |
Foreign | (1,799) | (121) | (11) |
Deferred Income Tax Expense (Benefit) | (1,814) | (130) | 105 |
Income tax (benefit) expense | $ 310 | $ 113 | $ 169 |
Income Taxes Tax Rate Reconcili
Income Taxes Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, US State Income Taxes, Percent | 7.50% | (2.60%) | (7.80%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 30.40% | 122.30% | 177.20% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (58.40%) | (136.00%) | (184.20%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Fines and Settlements, Percent | (0.20%) | (1.10%) | (9.20%) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (1.50%) | (3.00%) | (16.50%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | 0.30% | (2.60%) | 9.20% |
Effective income tax rate | (0.90%) | (2.00%) | (10.30%) |
Income Taxes Deferred tax asset
Income Taxes Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Unearned Premiums Reserve | $ 6,232 | $ 3,921 |
Accruals and reserves | 2,294 | 1,822 |
Net operating loss carryforwards | 52,796 | 37,070 |
Depreciation and amortization | 833 | 27 |
Equity compensation | 4,126 | 1,776 |
Credits | 847 | 697 |
Other | 381 | 706 |
Total deferred tax assets | 67,509 | 46,019 |
Deferred tax liabilities: | ||
Deferred costs | (887) | (637) |
Intangible assets | (2,802) | (4,895) |
Other | (1,817) | (960) |
Total deferred tax liabilities | (5,506) | (6,492) |
Deferred Tax Assets, Net | 62,003 | 39,527 |
Less deferred tax asset valuation allowance | (64,791) | (44,194) |
Net deferred tax liability | $ (2,788) | $ (4,667) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Operating loss carryforwards | $ 52.8 |
Deferred Income Taxes and Tax Credits | 0.8 |
Operating Loss Carryforwards, Limitations on Use, Value | 0.5 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 20.6 |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2026 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 133 | $ 113 | $ 89 |
Increases (decreases) to tax positions related to prior periods | 0 | 15 | 19 |
Increases to tax positions related to the current year | 5 | 5 | 5 |
Balance, end of year | $ 138 | $ 133 | $ 113 |
Retirement Plan Details (Detail
Retirement Plan Details (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 | $ 0 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [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 | $ 2,700,000 | $ 2,700,000 |
Schedule 1-Parent Only Disclo_2
Schedule 1-Parent Only Disclosures Condensed Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Technology and development | $ 16,866 | $ 9,947 | $ 7,025 |
General and administrative | 31,893 | 21,847 | 18,384 |
New pet acquisition expense | 78,647 | 47,837 | 35,451 |
Loss from investment in joint venture | (171) | (126) | (352) |
Operating loss | (35,196) | (4,927) | (1,920) |
Interest expense | 10 | 1,381 | 1,349 |
Other expense (income), net | (14) | 581 | 1,629 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | (35,524) | (3,019) | (806) |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Veterinary invoice expense | 4,538 | 1,118 | 697 |
Other costs of revenue | 2,610 | 468 | 353 |
Technology and development | 3,130 | 1,087 | 904 |
General and administrative | 11,714 | 7,055 | 5,944 |
New pet acquisition expense | 9,177 | 2,799 | 2,137 |
Depreciation and amortization | 473 | 328 | 211 |
Total expenses | 31,642 | 12,855 | 10,246 |
Loss from investment in joint venture | (33) | (108) | (205) |
Operating loss | (31,675) | (12,963) | (10,451) |
Interest expense | (2) | 1,361 | 1,327 |
Other expense (income), net | 5,755 | 4,845 | 4,156 |
Loss before equity in undistributed earnings of subsidiaries | (25,918) | (9,479) | (7,622) |
Income tax benefit | 12,272 | 8,460 | 5,423 |
Equity (loss) in undistributed earnings of subsidiaries | (21,884) | (4,821) | 390 |
Net loss | (35,530) | (5,840) | (1,809) |
Other comprehensive income of subsidiaries | 6 | 2,821 | 1,003 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | $ (35,524) | $ (3,019) | $ (806) |
Schedule 1-Parent Only Disclo_3
Schedule 1-Parent Only Disclosures Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 87,400 | $ 139,878 | ||
Accounts and other receivables | 165,217 | 99,065 | ||
Prepaid expenses and other assets | 12,325 | 8,222 | ||
Total current assets | 390,954 | 337,027 | ||
Restricted cash | 13,469 | 6,319 | ||
Property and equipment, net | 77,950 | 72,602 | ||
Intangible assets, net | 22,663 | 27,134 | ||
Other long-term assets | 17,776 | 16,557 | ||
Total assets | 562,582 | 498,250 | ||
Liabilities and Equity [Abstract] | ||||
Total current liabilities | 223,696 | 150,399 | ||
Deferred tax liabilities | 2,827 | 4,705 | ||
Other liabilities | 3,859 | 3,207 | ||
Total liabilities | 230,382 | 158,311 | ||
Common stock: $0.00001 par value per share | 0 | 0 | ||
Preferred stock: $0.00001 par value per share | 0 | 0 | ||
Additional paid-in capital | 466,792 | 439,007 | ||
Accumulated other comprehensive income (loss) | 3,077 | 3,071 | ||
Accumulated deficit | (126,890) | (91,360) | ||
Treasury stock, at cost | (10,779) | (10,779) | ||
Total stockholders' equity | 332,200 | 339,939 | $ 136,760 | $ 129,173 |
Total liabilities and stockholders’ equity | 562,582 | 498,250 | ||
Parent Company | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 33,957 | 101,131 | ||
Accounts and other receivables | 5,452 | 3,983 | ||
Prepaid expenses and other assets | 591 | 463 | ||
Total current assets | 40,000 | 105,577 | ||
Restricted cash | 13,469 | 6,319 | ||
Property and equipment, net | 904 | 680 | ||
Intangible assets, net | 5,620 | 5,478 | ||
Other long-term assets | 16,519 | 14,378 | ||
Advances to and investments in subsidiaries | 257,197 | 209,031 | ||
Total assets | 333,709 | 341,463 | ||
Liabilities and Equity [Abstract] | ||||
Accounts payable, accrued liabilities, and other current liabilities | 254 | 253 | ||
Total current liabilities | 254 | 253 | ||
Deferred tax liabilities | 1,094 | 1,109 | ||
Other liabilities | 162 | 162 | ||
Total liabilities | 1,510 | 1,524 | ||
Common stock: $0.00001 par value per share | 0 | 0 | ||
Preferred stock: $0.00001 par value per share | 0 | 0 | ||
Additional paid-in capital | 466,792 | 439,007 | ||
Accumulated other comprehensive income (loss) | 3,077 | 3,071 | ||
Accumulated deficit | (126,890) | (91,360) | ||
Treasury stock, at cost | (10,779) | (10,779) | ||
Total stockholders' equity | 332,200 | 339,939 | ||
Total liabilities and stockholders’ equity | $ 333,710 | $ 341,463 |
Parent-Only Condensed Consolida
Parent-Only Condensed Consolidated Balance Sheet Parentheticals (Details) - $ / shares | Dec. 31, 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 | 41,408,350 | 40,383,972 |
Common Stock, Shares, Outstanding | 40,475,185 | 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 |
Parent Company | ||
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 | 41,408,350 | 40,383,972 |
Common Stock, Shares, Outstanding | 40,475,185 | 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 |
Schedule 1-Parent Only Disclo_4
Schedule 1-Parent Only Disclosures Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
Stock-based compensation expense | $ 28,226 | $ 8,912 | $ 6,846 |
Other, net | (1,927) | 153 | 105 |
Net cash provided by operating activities | 7,458 | 21,544 | 16,157 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Cash paid in business acquisition, net of cash acquired | 0 | (48,133) | 0 |
Purchases of property and equipment | (12,355) | (7,451) | (5,373) |
Other | (1,755) | 57 | (2,891) |
Net cash used in investing activities | (51,913) | (76,747) | (28,008) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Proceeds from exercise of stock options | 3,607 | 6,013 | 2,982 |
Shares withheld to satisfy tax withholding | (4,732) | (1,115) | (1,667) |
Repayment of debt financing | 0 | (32,450) | 0 |
Net cash (used in) provided by financing activities | (1,125) | 170,848 | 14,044 |
Net change in cash, cash equivalents, and restricted cash | (45,328) | 115,629 | 2,616 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 146,197 | 30,568 | 27,952 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 100,869 | 146,197 | 30,568 |
Parent Company | |||
Net Cash Provided by (Used in) Operating Activities [Abstract] | |||
Net loss | (35,530) | (5,840) | (1,809) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | |||
(Income) loss attributable to investments in subsidiaries | (17,501) | (170) | 4,312 |
Depreciation and amortization | 473 | 328 | 211 |
Stock-based compensation expense | 28,226 | 8,912 | 6,846 |
Other, net | (161) | 240 | 48 |
Changes in operating assets and liabilities | (1,219) | (1,142) | (601) |
Net cash provided by operating activities | 9,290 | 2,668 | 383 |
Net Cash Provided by (Used in) Investing Activities [Abstract] | |||
Cash paid in business acquisition, net of cash acquired | 0 | (48,133) | 0 |
Purchases of property and equipment | (280) | (341) | (728) |
Advances to and investments in subsidiaries | (71,721) | (24,885) | (11,931) |
Dividends from subsidiaries | 5,567 | 4,651 | 3,922 |
Other | (1,755) | 0 | (7,019) |
Net cash used in investing activities | (68,189) | (68,708) | (15,756) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||
Issuance of common stock, net of offering costs | 0 | 192,265 | 0 |
Proceeds from exercise of stock options | 3,607 | 6,013 | 2,982 |
Shares withheld to satisfy tax withholding | (4,732) | (1,115) | (1,667) |
Proceeds from debt financing, net of financing fees | 0 | 6,213 | 13,167 |
Repayment of debt financing | 0 | (32,450) | 0 |
Other financing | 0 | (78) | 0 |
Net cash (used in) provided by financing activities | (1,125) | 170,848 | 14,482 |
Net change in cash, cash equivalents, and restricted cash | (60,024) | 104,808 | (891) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 107,450 | 2,642 | 3,533 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | $ 47,426 | $ 107,450 | $ 2,642 |