Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Entity Information [Line Items] | ||
Entity Registrant Name | TRUPANION INC. | |
Entity Central Index Key | 1,371,285 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,995,543 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 58,275 | $ 45,832 | $ 113,004 | $ 88,531 |
Claims expenses | 41,009 | 32,466 | 80,196 | 63,070 |
Other cost of revenue | 6,915 | 5,100 | 13,302 | 9,891 |
Gross profit | 10,351 | 8,266 | 19,506 | 15,570 |
Sales and marketing | 4,372 | 3,564 | 8,461 | 7,404 |
Technology and Development | 2,322 | 2,164 | 4,725 | 4,451 |
General and administrative | 4,245 | 3,495 | 8,257 | 7,217 |
Total operating expenses | 10,939 | 9,223 | 21,443 | 19,072 |
Operating loss | (588) | (957) | (1,937) | (3,502) |
Interest expense | 109 | 41 | 246 | 71 |
Other (income) expense, net | (1,112) | (38) | (1,140) | (55) |
Income (Loss) before income taxes | 415 | (960) | (1,043) | (3,518) |
Income tax expense | 4 | 4 | 28 | 18 |
Net income (loss) | $ 411 | $ (964) | $ (1,071) | $ (3,536) |
Net income (loss) per share, basic and diluted | $ 0.01 | $ (0.03) | $ (0.04) | $ (0.13) |
Weighted Average Number of Shares Outstanding, Basic | 29,510,907 | 28,348,348 | 29,383,502 | 28,173,798 |
Weighted Average Number of Shares Outstanding, Diluted | 32,734,624 | 28,348,348 | 29,383,502 | 28,173,798 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income (loss) | $ 411 | $ (964) | $ (1,071) | $ (3,536) |
Change in foreign currency translation adjustments | 111 | 11 | 123 | 300 |
Change in net gains on available-for-sale debt securities | 16 | 6 | 9 | 8 |
Other comprehensive income, net of taxes | 127 | 17 | 132 | 308 |
Comprehensive Income (Loss) | $ 538 | $ (947) | $ (939) | $ (3,228) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 24,604 | $ 23,637 |
Short-term Investments | 32,565 | 29,570 |
Accounts and other receivables | 17,098 | 10,118 |
Prepaid expenses and other assets | 2,294 | 2,062 |
Total current assets | 76,561 | 65,387 |
Restricted Cash | 600 | 600 |
Long-Term Investments, at fair value | 2,829 | 2,579 |
Equity Method Investments | 0 | 271 |
Property and equipment, net | 7,988 | 8,464 |
Intangible assets, net | 4,950 | 4,910 |
Other Long-Term Assets | 2,723 | 134 |
Total assets | 95,651 | 82,345 |
Liabilities and Equity [Abstract] | ||
Accounts payable | 1,779 | 2,006 |
Accrued liabilities and other current liabilities | 6,582 | 5,416 |
Claims reserve | 10,820 | 9,521 |
Deferred Revenue | 20,442 | 13,463 |
Total current liabilities | 39,623 | 30,406 |
Long-term debt | 6,309 | 4,767 |
Deferred tax liabilities | 1,623 | 1,623 |
Other liabilities | 944 | 834 |
Total liabilities | 48,499 | 37,630 |
Common stock | 0 | 0 |
Preferred Stock | 0 | 0 |
Additional paid-in capital | 132,950 | 129,574 |
Accumulated other comprehensive loss | (245) | (377) |
Accumulated deficit | (82,352) | (81,281) |
Treasury stock, at cost | (3,201) | (3,201) |
Stockholders' Equity Attributable to Parent | 47,152 | 44,715 |
Total liabilities and stockholders' equity | $ 95,651 | $ 82,345 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Short-term Investments, Fair Value | $ 32,563 | $ 29,570 |
Available-for-sale Securities, Amortized Cost Basis | $ 2,829 | $ 2,587 |
Common Stock [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 30,652,240 | 30,156,247 |
Common Stock, Shares, Outstanding | 29,994,940 | 29,498,947 |
Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Treasury Stock [Member] | ||
Treasury Stock, Shares | 657,300 | 657,300 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Net Cash Provided by Operating Activities [Abstract] | ||
Net loss | $ (1,071) | $ (3,536) |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depreciation and Amortization | 2,113 | 1,524 |
Stock-based compensation expense | 1,669 | 1,439 |
Gain on Sale of Equity Investment | (1,036) | 0 |
Other, Net | 56 | 39 |
Increase (Decrease) in Operating Assets [Abstract] | ||
Accounts and other receivables | (6,968) | (994) |
Prepaid expenses and other assets | (183) | 463 |
Accounts Payable, Accrued Liabilities, and Other Liabilities | 913 | (1,203) |
Claims Reserve | 1,259 | 1,244 |
Deferred revenue | 6,929 | 1,284 |
Net cash provided by operating activities | 3,681 | 260 |
Net Cash Used in Investing Activities [Abstract] | ||
Purchases of Investment Securities | (14,895) | (11,223) |
Maturities of Investment Securities | 11,712 | 9,338 |
Proceeds from Sale of Equity Method Investment | 1,402 | 0 |
Purchases of property and equipment | (1,264) | (1,090) |
Other Investments | (2,753) | (69) |
Net cash used in investing activities | (5,798) | (3,044) |
Net Cash Provided by Financing Activities [Abstract] | ||
Proceeds from exercise of stock options | 1,647 | 1,785 |
Proceeds from Debt financing, net of financing fees | 1,459 | 986 |
Payments on Capital Lease Obligation | (203) | (73) |
Net cash provided by financing activities | 2,903 | 2,698 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net | 181 | 337 |
Net Increase in Cash, Cash Equivalents, and Restricted Cash | 967 | 251 |
Cash, Cash Equivalents, and Restricted Cash at beginning of period | 24,237 | 17,956 |
Cash, Cash Equivalents, and Restricted Cash, End of Period | 25,204 | 18,207 |
Purchases of property and equipment included in accounts payable and accrued liabilities | 352 | 75 |
Property and Equipment Acquired Under Capital Leases | $ 66 | $ 326 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Significant Accounting Policies Description of Business and Basis of Presentation Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada and Puerto Rico. The financial data as of December 31, 2016 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 15, 2017 (the 2016 10-K). The Company's accounting policies are described in Note 1 to the financial statements included in the 2016 10-K. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period. Reclassifications Certain prior year amounts have been reclassified within the Company’s consolidated financial statements from their original presentation to conform to the current period presentation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2016 10-K for additional discussion of these estimates and assumptions. Accumulated Other Comprehensive Loss There were no reclassifications out of accumulated other comprehensive loss during the three and six months ended June 30, 2017 and 2016 . Accounting Pronouncements Adopted During Period In November 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current in the consolidated balance sheets. The Company adopted this ASU as of January 1, 2017 and has retrospectively applied the provisions of this standard. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The Company adopted this ASU as of January 1, 2017. As a result, the Company has elected to use actual forfeitures in the estimate of stock-based compensation expense. Additionally, the guidance related to the accounting for excess tax benefits and deficiencies resulted in an initial adjustment as of January 1, 2017 to the Company's net operating loss deferred tax asset to eliminate the Company's existing windfall pool amounting to $4.3 million , which was offset by an adjustment to the Company's valuation allowance. Finally, tax withholding of shares will be allowed up to the employee's maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award, subject to the Company's internal policies for making this election. Recent Accounting Pronouncements In February 2016, the FASB issued an ASU amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the consolidated balance sheets. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2019. The Company has determined this guidance will require recognition of a lease liability and corresponding asset on the consolidated balance sheets equal to the present value of minimum lease payments. The carrying amount of the asset is derived from the amount of the lease liability at the end of each reporting period. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Earnings Per Share [Text Block] | Net Income (Loss) per Share Basic net income (loss) per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated using the weighted-average number of shares of common stock plus, when dilutive, potential common shares outstanding using the treasury-stock method. Potential common shares outstanding include stock options, unvested restricted stock, and warrants. The components of basic and diluted earnings per share were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except per share data) Basic earnings per share: Net income (loss) $ 411 $ (964 ) $ (1,071 ) $ (3,536 ) Shares used in computation: Weighted average common shares outstanding 29,510,907 28,348,348 29,383,502 28,173,798 Basic earnings per share $ 0.01 $ (0.03 ) $ (0.04 ) $ (0.13 ) Diluted earnings per share: Net income (loss) $ 411 $ (964 ) $ (1,071 ) $ (3,536 ) Shares used in computation: Weighted average common shares outstanding 29,510,907 28,348,348 29,383,502 28,173,798 Stock options 2,511,012 — — — Restricted stock awards and units 351,668 — — — Warrants 361,037 — — — Weighted average number of shares 32,734,624 28,348,348 29,383,502 28,173,798 Diluted earnings per share $ 0.01 $ (0.03 ) $ (0.04 ) $ (0.13 ) The following potentially dilutive equity securities were not included in the diluted earnings per common share calculation because they would have had an antidilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock options 1,035,163 4,338,867 4,207,577 4,338,867 Restricted stock awards and units — 472,238 351,668 472,238 Warrants — 869,999 810,000 869,999 |
Investment Securities (Notes)
Investment Securities (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities The amortized cost, gross unrealized holding gains and losses, and fair value of available-for-sale and short-term investments by major security type and class of security were as follows as of June 30, 2017 and December 31, 2016 (in thousands): Amortized Gross Gross Fair As of June 30, 2017 Available-for-sale: Foreign deposits $ 1,829 $ — $ — $ 1,829 Municipal bond 1,000 — — 1,000 $ 2,829 $ — $ — $ 2,829 Short-term investments: U.S. treasury securities $ 5,786 $ — $ (3 ) $ 5,783 Certificates of deposit 709 1 — 710 U.S. government funds 26,070 — — 26,070 $ 32,565 $ 1 $ (3 ) $ 32,563 Amortized Gross Gross Fair As of December 31, 2016 Available-for-sale: Foreign deposits $ 1,587 $ — $ — $ 1,587 Municipal bond 1,000 — (8 ) 992 $ 2,587 $ — $ (8 ) $ 2,579 Short-term investments: U.S. treasury securities $ 5,791 $ — $ — $ 5,791 Certificates of deposit 707 — — 707 U.S. government funds 23,072 — — 23,072 $ 29,570 $ — $ — $ 29,570 Maturities of debt securities classified as available-for-sale were as follows (in thousands): June 30, 2017 Amortized Fair Available-for-sale: Due under one year $ — $ — Due after one year through five years 1,829 1,829 Due after five years through ten years 1,000 1,000 Due after ten years — — $ 2,829 $ 2,829 The Company evaluated its securities for other-than-temporary impairment and considers the decline in market value for the securities to be primarily attributable to current economic and market conditions. For debt securities, the Company does not intend to sell, nor is it more likely than not that the Company will be required to sell, the securities prior to the recovery of the amortized cost basis which may be at maturity. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands): As of June 30, 2017 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 1,829 1,829 — Municipal bond 1,000 — 1,000 Money market funds 4,871 4,871 — Total $ 8,300 $ 7,300 $ 1,000 As of December 31, 2016 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 1,587 1,587 — Municipal bond 992 — 992 Money market funds 7,033 7,033 — Total $ 10,212 $ 9,220 $ 992 The Company measures the fair value of restricted cash, foreign deposits, and money market funds based on quoted prices in active markets for identical assets. The fair value of the municipal bond is based on either recent trades in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. As of June 30, 2017, the Company's other long-term assets balance included a $2.6 million note receivable, recorded at its estimated collectible amount, plus accrued interest. The Company estimates that the carrying value of the note receivable approximates the fair value. The estimated fair value represents a Level 3 measurement within the fair value hierarchy, and is based on market interest rates and the assessed creditworthiness of the third party. The Company estimates the fair value of long-term debt based upon rates currently available to the Company for debt with similar terms and remaining maturities. This is a Level 3 measurement. Based upon the terms of the debt, the carrying amount of long-term debt approximated fair value at June 30, 2017 and December 31, 2016 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt The Company has a revolving line of credit, secured by any and all interests in the Company's assets that are not otherwise restricted. Interest on the revolving line of credit is payable monthly at the greater of 4.5%, or 1.25% plus the prime rate . As of June 30, 2017 and December 31, 2016 , borrowings on the revolving line of credit were limited to the lesser of $30.0 million and the total amount of cash and securities held by the Company's insurance subsidiaries (American Pet Insurance Company and Wyndham Insurance Company (SAC) Ltd. Segregated Account AX). The borrowing agreement includes other ancillary services and letters of credit of up to $4.5 million and $3.0 million as of June 30, 2017 and December 31, 2016 , respectively. The Company's outstanding balance for ancillary services and letters of credit of $1.5 million as of June 30, 2017 and $1.6 million as of December 31, 2016 , reduces available borrowing capacity on the line of credit. The facility also requires a deposit of restricted cash of $0.6 million . The agreement was most recently amended in March 2017 to extend the maturity date to December 2019. The credit agreement requires the Company to comply with various financial and non-financial covenants. As of June 30, 2017 and December 31, 2016 , the Company was in compliance with all covenants. As of June 30, 2017 , the Company's outstanding borrowings under this facility were $6.5 million , recorded net of financing fees of $0.2 million , with $22.0 million remaining available to borrow. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies From time to time, the Company is subject to litigation matters and claims arising from the ordinary course of business. The Company records a provision for a liability relating to legal matters when it is both probable that a material liability has been incurred and the amount of the loss can be reasonably estimated. At this time, the Company does not believe any such matters to be material individually or in the aggregate. These views are subject to change following the outcome of future events or the results of future developments. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation The following table presents information regarding stock options granted, exercised and forfeited for the periods presented: Number Of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2016 4,123,023 $ 5.06 $ 43,185 Granted 628,589 17.47 Exercised (494,970 ) 3.33 6,601 Forfeited (49,065 ) 10.22 Outstanding as of June 30, 2017 4,207,577 7.05 64,482 Vested and Exercisable at June 30, 2017 2,871,578 $ 3.67 $ 53,737 As of June 30, 2017 , the stock options outstanding had a weighted-average remaining contractual life of 5.9 years. Stock-based compensation expense includes stock options and restricted stock awards and units granted to employees and non-employees and has been reported in the Company’s consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Claims expenses $ 89 $ 57 $ 159 $ 115 Other cost of revenue 60 9 103 17 Sales and marketing 198 165 385 247 Technology and development 59 36 109 91 General and administrative 482 476 913 969 Total stock-based compensation expense $ 888 $ 743 $ 1,669 $ 1,439 As of June 30, 2017 , the Company had 1,335,999 unvested stock options and 351,668 restricted stock awards and units that are expected to vest. Total stock-based compensation expense of $7.8 million related to these unvested awards is expected to be recognized over a weighted-average period of approximately 2.7 years. |
Claims Reserve
Claims Reserve | 6 Months Ended |
Jun. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | Claims Reserve The claims reserve includes unpaid claims and claims adjustment expenses and an estimate of claims that have been incurred but not yet reported (IBNR) to the Company. The estimate, which involves actuarial projections, is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated claims patterns, including expected future trends in claims severity and frequency. Reserve estimates are continually refined as claims are reported and settled. Changes in management's assumptions and estimates may have a relatively large impact to the claims reserve and associated expense. This estimate is made for each of the Company's two segments, subscription business and other business. The subscription business segment includes monthly subscriptions related to the Company’s medical plan which are marketed directly to consumers, while the other business segment includes all other business that is not directly marketed to consumers. Summarized below are the changes in the total liability for the Company's subscription business segment: Six Months Ended June 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 8,538 $ 5,384 Claims incurred during the period related to: Current year 74,244 58,162 Prior years (257 ) 459 Total claims incurred 73,987 58,621 Claims paid during period related to: Current year 65,549 51,844 Prior years 7,138 5,415 Total claims paid 72,687 57,259 Non-cash claims expense 229 187 Claims reserve at end of period $ 9,609 $ 6,559 The Company’s claim reserve for the subscription business segment increased $1.1 million from $8.5 million at December 31, 2016 to $9.6 million at June 30, 2017 . This change was comprised of $74.0 million in claims expense incurred during the period less $72.7 million in claims expense paid during the period. The $74.0 million in claims expense incurred includes a reduction of $0.3 million to the reserves relating to prior years. The change is the result of ongoing analysis of recent claims trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims. Summarized below are the changes in total liability for the Company's other business segment: Six Months Ended June 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 983 $ 890 Claims incurred during the period related to: Current year 6,337 4,427 Prior years (128 ) 22 Total claims incurred 6,209 4,449 Claims paid during period related to: Current year 5,217 3,484 Prior years 764 832 Total claims paid 5,981 4,316 Non-cash claims expense — — Claims reserve at end of period $ 1,211 $ 1,023 The Company’s claim reserve for the other business segment increased $0.2 million from $1.0 million at December 31, 2016 to $1.2 million at June 30, 2017 . This change was comprised of $6.2 million in claims expense incurred during the period less $6.0 million in claims expense paid during the period. The $6.2 million in claims expense incurred includes a reduction of $0.1 million to the reserves relating to prior years. The change is the result of ongoing analysis of recent claims trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims. Claims Reserve by Loss Year The total claims reserve as of June 30, 2017 for the subscription business segment relates to activity incurred during the years as follows (in thousands): As of June 30, 2017 Year Incurred 2015 $ 229 2016 913 2017 8,467 $ 9,609 The total claims reserve as of June 30, 2017 for the other business segment relates to activity incurred during the years as follows (in thousands): As of June 30, 2017 Year Incurred 2015 $ 2 2016 88 2017 1,121 $ 1,211 |
Equity Method Investment (Notes
Equity Method Investment (Notes) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Equity Method Investment In June 2017, the Company sold its share of an investment previously accounted for under the equity method. The sale resulted in a gain of $1.0 million recorded within other income on the consolidated statement of operations. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segments The Company has two segments: subscription business and other business. The subscription business segment includes monthly subscriptions related to the Company’s medical plan which are marketed directly to consumers, while the other business segment includes all other business that is not directly marketed to consumers. The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Additionally, other operating expenses, such as sales and marketing expenses, are allocated to each segment and evaluated when material. Interest and other expenses and income taxes are not allocated to the segments, nor included in the measure of segment profit or loss. The Company does not analyze discrete segment balance sheet information related to long-term assets. Revenue and gross profit of the Company’s segments were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue: Subscription business $ 52,641 $ 42,162 $ 102,870 $ 81,305 Other business 5,634 3,670 10,134 7,226 58,275 45,832 113,004 88,531 Claims expenses: Subscription business 37,664 30,111 73,987 58,621 Other business 3,345 2,355 6,209 4,449 41,009 32,466 80,196 63,070 Other cost of revenue: Subscription business 4,927 4,047 9,850 7,740 Other business 1,988 1,053 3,452 2,151 6,915 5,100 13,302 9,891 Gross profit: Subscription business 10,050 8,004 19,033 14,944 Other business 301 262 473 626 10,351 8,266 19,506 15,570 Sales and marketing: Subscription business 4,309 3,509 8,350 7,311 Other business 63 55 111 93 4,372 3,564 8,461 7,404 Technology and development 2,322 2,164 4,725 4,451 General and administrative 4,245 3,495 8,257 7,217 Operating loss $ (588 ) $ (957 ) $ (1,937 ) $ (3,502 ) The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 United States $ 47,306 $ 36,748 $ 91,440 $ 71,225 Canada 10,969 9,084 21,564 17,306 Total revenue $ 58,275 $ 45,832 $ 113,004 $ 88,531 Substantially all of the Company’s long-lived assets were located in the United States as of June 30, 2017 and December 31, 2016 . |
Nature of Operations and Summ17
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | Description of Business and Basis of Presentation Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada and Puerto Rico. |
Description of Business and Basis of Presentation | The financial data as of December 31, 2016 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S Securities and Exchange Commission on February 15, 2017 (the 2016 10-K). The Company's accounting policies are described in Note 1 to the financial statements included in the 2016 10-K. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period. |
Reclassifications [Text Block] | Reclassifications Certain prior year amounts have been reclassified within the Company’s consolidated financial statements from their original presentation to conform to the current period presentation. |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2016 10-K for additional discussion of these estimates and assumptions. |
Comprehensive Income, Policy [Policy Text Block] | Accumulated Other Comprehensive Loss There were no reclassifications out of accumulated other comprehensive loss during the three and six months ended June 30, 2017 and 2016 . |
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Pronouncements Adopted During Period In November 2015, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the accounting for income taxes and requiring all deferred tax assets and liabilities be classified as non-current in the consolidated balance sheets. The Company adopted this ASU as of January 1, 2017 and has retrospectively applied the provisions of this standard. In March 2016, the FASB issued an ASU amending the accounting for employee share-based payments, including income tax recognition and classification. The Company adopted this ASU as of January 1, 2017. As a result, the Company has elected to use actual forfeitures in the estimate of stock-based compensation expense. Additionally, the guidance related to the accounting for excess tax benefits and deficiencies resulted in an initial adjustment as of January 1, 2017 to the Company's net operating loss deferred tax asset to eliminate the Company's existing windfall pool amounting to $4.3 million , which was offset by an adjustment to the Company's valuation allowance. Finally, tax withholding of shares will be allowed up to the employee's maximum individual tax rate in the relevant jurisdiction without resulting in liability classification of the award, subject to the Company's internal policies for making this election. Recent Accounting Pronouncements In February 2016, the FASB issued an ASU amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the consolidated balance sheets. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company plans to adopt this guidance as of January 1, 2019. The Company has determined this guidance will require recognition of a lease liability and corresponding asset on the consolidated balance sheets equal to the present value of minimum lease payments. The carrying amount of the asset is derived from the amount of the lease liability at the end of each reporting period. |
Fair Value Notes Receivable (Po
Fair Value Notes Receivable (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | As of June 30, 2017, the Company's other long-term assets balance included a $2.6 million note receivable, recorded at its estimated collectible amount, plus accrued interest. The Company estimates that the carrying value of the note receivable approximates the fair value. The estimated fair value represents a Level 3 measurement within the fair value hierarchy, and is based on market interest rates and the assessed creditworthiness of the third party. |
Claims Reserve Claims Reserve (
Claims Reserve Claims Reserve (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Claims Reserve [Abstract] | |
Liability Reserve Estimate, Policy [Policy Text Block] | The estimate, which involves actuarial projections, is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated claims patterns, including expected future trends in claims severity and frequency. Reserve estimates are continually refined as claims are reported and settled. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The components of basic and diluted earnings per share were as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands, except per share data) Basic earnings per share: Net income (loss) $ 411 $ (964 ) $ (1,071 ) $ (3,536 ) Shares used in computation: Weighted average common shares outstanding 29,510,907 28,348,348 29,383,502 28,173,798 Basic earnings per share $ 0.01 $ (0.03 ) $ (0.04 ) $ (0.13 ) Diluted earnings per share: Net income (loss) $ 411 $ (964 ) $ (1,071 ) $ (3,536 ) Shares used in computation: Weighted average common shares outstanding 29,510,907 28,348,348 29,383,502 28,173,798 Stock options 2,511,012 — — — Restricted stock awards and units 351,668 — — — Warrants 361,037 — — — Weighted average number of shares 32,734,624 28,348,348 29,383,502 28,173,798 Diluted earnings per share $ 0.01 $ (0.03 ) $ (0.04 ) $ (0.13 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following potentially dilutive equity securities were not included in the diluted earnings per common share calculation because they would have had an antidilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Stock options 1,035,163 4,338,867 4,207,577 4,338,867 Restricted stock awards and units — 472,238 351,668 472,238 Warrants — 869,999 810,000 869,999 |
Investment Securities Available
Investment Securities Available-for-Sale (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment [Table Text Block] | The amortized cost, gross unrealized holding gains and losses, and fair value of available-for-sale and short-term investments by major security type and class of security were as follows as of June 30, 2017 and December 31, 2016 (in thousands): Amortized Gross Gross Fair As of June 30, 2017 Available-for-sale: Foreign deposits $ 1,829 $ — $ — $ 1,829 Municipal bond 1,000 — — 1,000 $ 2,829 $ — $ — $ 2,829 Short-term investments: U.S. treasury securities $ 5,786 $ — $ (3 ) $ 5,783 Certificates of deposit 709 1 — 710 U.S. government funds 26,070 — — 26,070 $ 32,565 $ 1 $ (3 ) $ 32,563 Amortized Gross Gross Fair As of December 31, 2016 Available-for-sale: Foreign deposits $ 1,587 $ — $ — $ 1,587 Municipal bond 1,000 — (8 ) 992 $ 2,587 $ — $ (8 ) $ 2,579 Short-term investments: U.S. treasury securities $ 5,791 $ — $ — $ 5,791 Certificates of deposit 707 — — 707 U.S. government funds 23,072 — — 23,072 $ 29,570 $ — $ — $ 29,570 |
Available-for-sale Securities [Table Text Block] | Maturities of debt securities classified as available-for-sale were as follows (in thousands): June 30, 2017 Amortized Fair Available-for-sale: Due under one year $ — $ — Due after one year through five years 1,829 1,829 Due after five years through ten years 1,000 1,000 Due after ten years — — $ 2,829 $ 2,829 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value, asset & liabilities measured on recurring basis [Table Text Block] | The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands): As of June 30, 2017 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 1,829 1,829 — Municipal bond 1,000 — 1,000 Money market funds 4,871 4,871 — Total $ 8,300 $ 7,300 $ 1,000 As of December 31, 2016 Fair Value Level 1 Level 2 Assets Restricted cash $ 600 $ 600 $ — Foreign deposits 1,587 1,587 — Municipal bond 992 — 992 Money market funds 7,033 7,033 — Total $ 10,212 $ 9,220 $ 992 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table presents information regarding stock options granted, exercised and forfeited for the periods presented: Number Of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2016 4,123,023 $ 5.06 $ 43,185 Granted 628,589 17.47 Exercised (494,970 ) 3.33 6,601 Forfeited (49,065 ) 10.22 Outstanding as of June 30, 2017 4,207,577 7.05 64,482 Vested and Exercisable at June 30, 2017 2,871,578 $ 3.67 $ 53,737 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Stock-based compensation expense includes stock options and restricted stock awards and units granted to employees and non-employees and has been reported in the Company’s consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (in thousands) Claims expenses $ 89 $ 57 $ 159 $ 115 Other cost of revenue 60 9 103 17 Sales and marketing 198 165 385 247 Technology and development 59 36 109 91 General and administrative 482 476 913 969 Total stock-based compensation expense $ 888 $ 743 $ 1,669 $ 1,439 |
Claims Reserve (Tables)
Claims Reserve (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | Summarized below are the changes in the total liability for the Company's subscription business segment: Six Months Ended June 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 8,538 $ 5,384 Claims incurred during the period related to: Current year 74,244 58,162 Prior years (257 ) 459 Total claims incurred 73,987 58,621 Claims paid during period related to: Current year 65,549 51,844 Prior years 7,138 5,415 Total claims paid 72,687 57,259 Non-cash claims expense 229 187 Claims reserve at end of period $ 9,609 $ 6,559 The Company’s claim reserve for the subscription business segment increased $1.1 million from $8.5 million at December 31, 2016 to $9.6 million at June 30, 2017 . This change was comprised of $74.0 million in claims expense incurred during the period less $72.7 million in claims expense paid during the period. The $74.0 million in claims expense incurred includes a reduction of $0.3 million to the reserves relating to prior years. The change is the result of ongoing analysis of recent claims trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims. Summarized below are the changes in total liability for the Company's other business segment: Six Months Ended June 30, 2017 2016 (in thousands) Claims reserve at beginning of year $ 983 $ 890 Claims incurred during the period related to: Current year 6,337 4,427 Prior years (128 ) 22 Total claims incurred 6,209 4,449 Claims paid during period related to: Current year 5,217 3,484 Prior years 764 832 Total claims paid 5,981 4,316 Non-cash claims expense — — Claims reserve at end of period $ 1,211 $ 1,023 The Company’s claim reserve for the other business segment increased $0.2 million from $1.0 million at December 31, 2016 to $1.2 million at June 30, 2017 . This change was comprised of $6.2 million in claims expense incurred during the period less $6.0 million in claims expense paid during the period. The $6.2 million in claims expense incurred includes a reduction of $0.1 million to the reserves relating to prior years. The change is the result of ongoing analysis of recent claims trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims. |
IBRN plus expected development on reported claims[Table Text Block] | The total claims reserve as of June 30, 2017 for the subscription business segment relates to activity incurred during the years as follows (in thousands): As of June 30, 2017 Year Incurred 2015 $ 229 2016 913 2017 8,467 $ 9,609 The total claims reserve as of June 30, 2017 for the other business segment relates to activity incurred during the years as follows (in thousands): As of June 30, 2017 Year Incurred 2015 $ 2 2016 88 2017 1,121 $ 1,211 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Revenue and Gross Profit from Segments [Table Text Block] | Revenue and gross profit of the Company’s segments were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue: Subscription business $ 52,641 $ 42,162 $ 102,870 $ 81,305 Other business 5,634 3,670 10,134 7,226 58,275 45,832 113,004 88,531 Claims expenses: Subscription business 37,664 30,111 73,987 58,621 Other business 3,345 2,355 6,209 4,449 41,009 32,466 80,196 63,070 Other cost of revenue: Subscription business 4,927 4,047 9,850 7,740 Other business 1,988 1,053 3,452 2,151 6,915 5,100 13,302 9,891 Gross profit: Subscription business 10,050 8,004 19,033 14,944 Other business 301 262 473 626 10,351 8,266 19,506 15,570 Sales and marketing: Subscription business 4,309 3,509 8,350 7,311 Other business 63 55 111 93 4,372 3,564 8,461 7,404 Technology and development 2,322 2,164 4,725 4,451 General and administrative 4,245 3,495 8,257 7,217 Operating loss $ (588 ) $ (957 ) $ (1,937 ) $ (3,502 ) |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents the Company’s revenue by geographic region of the member (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 United States $ 47,306 $ 36,748 $ 91,440 $ 71,225 Canada 10,969 9,084 21,564 17,306 Total revenue $ 58,275 $ 45,832 $ 113,004 $ 88,531 |
Nature of Operations and Summ26
Nature of Operations and Summary of Significant Accounting Policies (Details) Narrative - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 4.3 |
Net Loss per Share (Details) Co
Net Loss per Share (Details) Computation of Net Income (Loss) Per Share - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income (loss) | $ 411 | $ (964) | $ (1,071) | $ (3,536) |
Weighted Average Number of Shares Outstanding, Basic | 29,510,907 | 28,348,348 | 29,383,502 | 28,173,798 |
Weighted Average Number of Shares Outstanding, Diluted | 32,734,624 | 28,348,348 | 29,383,502 | 28,173,798 |
Earnings Per Share [Abstract] | ||||
Earnings Per Share, Basic | $ 0.01 | $ (0.03) | $ (0.04) | $ (0.13) |
Earnings Per Share, Diluted | $ 0.01 | $ (0.03) | $ (0.04) | $ (0.13) |
Employee Stock Option [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,511,012 | 0 | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 351,668 | 0 | 0 | 0 |
Warrant [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 361,037 | 0 | 0 | 0 |
Net Loss per Share (Details) Sc
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,035,163 | 4,338,867 | 4,207,577 | 4,338,867 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 472,238 | 351,668 | 472,238 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 869,999 | 810,000 | 869,999 |
Investment Securities (Details)
Investment Securities (Details) Investment Schedule - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | $ 2,829 | $ 2,587 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (8) |
Available-for-sale securities, fair value | 2,829 | 2,579 |
Short-term investments, amortized cost | 32,565 | 29,570 |
Short-term Investments, Gross Unrealized Holding Gains | 1 | 0 |
Short-term investments, gross unrealized holding losses | (3) | 0 |
Short-term Investments, fair value | 32,563 | 29,570 |
Deposits [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 1,829 | 1,587 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | 0 |
Available-for-sale securities, fair value | 1,829 | 1,587 |
Municipal Bonds [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, amortized cost | 1,000 | 1,000 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (8) |
Available-for-sale securities, fair value | 1,000 | 992 |
U.S. Treasury securities | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 5,786 | 5,791 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | (3) | 0 |
Short-term Investments, fair value | 5,783 | 5,791 |
Certificates of deposit | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 709 | 707 |
Short-term Investments, Gross Unrealized Holding Gains | 1 | 0 |
Short-term investments, gross unrealized holding losses | 0 | 0 |
Short-term Investments, fair value | 710 | 707 |
US government debt securities | ||
Investment [Line Items] | ||
Short-term investments, amortized cost | 26,070 | 23,072 |
Short-term Investments, Gross Unrealized Holding Gains | 0 | 0 |
Short-term investments, gross unrealized holding losses | 0 | 0 |
Short-term Investments, fair value | $ 26,070 | $ 23,072 |
Investment Securities (Detail30
Investment Securities (Details) Available-for-Sale $ in Thousands | Jun. 30, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale securities, debt maturities, next twelve months, amortized cost basis | $ 0 |
Available-for-sale securities, debt maturities, next twelve months, fair value | 0 |
Available-for-sale securities, debt maturities, year two through five, amortized cost basis | 1,829 |
Available-for-sale securities, debt maturities, year two through five, fair value | 1,829 |
Available-for-sale securities, debt maturities, year six through ten, amortized cost basis | 1,000 |
Available-for-sale securities, debt maturities, year six through ten, fair value | 1,000 |
Available-for-sale securities, debt maturities, after ten years, amortized cost basis | 0 |
Available-for-sale securities, debt maturities, after ten years, fair value | 0 |
Available-for-sale securities, amortized cost | 2,829 |
Available-for-sale securities, debt maturities, fair value | $ 2,829 |
Fair Value (Details) Unobservab
Fair Value (Details) Unobservable - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | $ 600 | $ 600 |
Marketable Securities, Noncurrent | 2,829 | 2,579 |
Assets, Fair Value Disclosure | 8,300 | 10,212 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 7,300 | 9,220 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 1,000 | 992 |
Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 600 | 600 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 600 | 600 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Cash | 0 | 0 |
Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 1,829 | 1,587 |
Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 1,829 | 1,587 |
Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 0 | 0 |
Municipal bond | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 1,000 | 992 |
Municipal bond | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 0 | 0 |
Municipal bond | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities, Noncurrent | 1,000 | 992 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 4,871 | 7,033 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 4,871 | 7,033 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value (Details) Narrative
Fair Value (Details) Narrative $ in Millions | Jun. 30, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Notes Receivable, Fair Value Disclosure | $ 2.6 |
Debt (Details) Narrative
Debt (Details) Narrative - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Line of credit facility, interest rate description | greater of 4.5%, or 1.25% plus the prime rate | |
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 30 | $ 30 |
Line of Credit Facility, Ancillary Services and Letter of Credit | 4.5 | 3 |
Line of Credit Facility, Ancillary Services and Letter of Credit | 1.5 | 1.6 |
Restricted Cash and Cash Equivalents | 0.6 | $ 0.6 |
Long-term Line of Credit, Noncurrent | 6.5 | |
Line of Credit Financing Fee | 0.2 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 22 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation, options, outstanding, number of shares | 4,207,577 | 4,123,023 |
Stock-based compensation, options, granted, number of options | 628,589 | |
Stock-based compensation, options, exercised | (494,970) | |
Stock-based compensation, options, forfeited | (49,065) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 2,871,578 | |
Stock-based compensation, options, outstanding, weighted-average exercise price | $ 7.05 | $ 5.06 |
Stock-based compensation, options, granted, weighted-average exercise price | 17.47 | |
Stock-based compensation, options, exercised, weighted-average exercise price | 3.33 | |
Stock-based compensation, options, forfeited, weighted-average exercise price | 10.22 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 3.67 | |
Stock-based compensation, options, outstanding, aggregate intrinsic value | $ 64,482 | $ 43,185 |
Stock-based compensation, options, exercised, aggregate intrinsic value | 6,601 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 53,737 |
Stock-based Compensation (Det35
Stock-based Compensation (Details) Expense Category - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 888 | $ 743 | $ 1,669 | $ 1,439 |
Claims expense | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 89 | 57 | 159 | 115 |
Other Cost of Revenue | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 60 | 9 | 103 | 17 |
Sales and marketing | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 198 | 165 | 385 | 247 |
Technology and development | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | 59 | 36 | 109 | 91 |
General and administrative | ||||
Stock-based Compensation | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 482 | $ 476 | $ 913 | $ 969 |
Stock-based Compensation (Det36
Stock-based Compensation (Details) Narrative $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining contractual life, share-based payments, weighted average | 5 years 11 months |
Share-based compensation arrangement by share-based payment award, options, nonvested, number of shares | 1,335,999 |
Restricted stock, outstanding | 351,668 |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ | $ 7.8 |
Share-based compensation arrangement and non-employee, weighted average remaining vesting period | 2 years 8 months |
Claims Reserve (Details) Claims
Claims Reserve (Details) Claims Loss Roll-forward - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subscription business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | $ 9,609 | $ 6,559 | $ 8,538 | $ 5,384 |
Current Year Claims Incurred | 74,244 | 58,162 | ||
Prior Year Claims Incurred | (257) | 459 | ||
Total Claims Incurred | 73,987 | 58,621 | ||
Current Year Claims Paid | 65,549 | 51,844 | ||
Prior Years Claims Paid | 7,138 | 5,415 | ||
Total Claims Paid | 72,687 | 57,259 | ||
Claims expense non-cash | 229 | 187 | ||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 9,609 | |||
Other business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Claims Reserve | 1,211 | 1,023 | $ 983 | $ 890 |
Current Year Claims Incurred | 6,337 | 4,427 | ||
Prior Year Claims Incurred | (128) | 22 | ||
Total Claims Incurred | 6,209 | 4,449 | ||
Current Year Claims Paid | 5,217 | 3,484 | ||
Prior Years Claims Paid | 764 | 832 | ||
Total Claims Paid | 5,981 | 4,316 | ||
Claims expense non-cash | 0 | $ 0 | ||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 1,211 | |||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 229 | |||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 2 | |||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 913 | |||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 88 | |||
Short duration insurance contracts accident year 2017 [Member] | Subscription business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | 8,467 | |||
Short duration insurance contracts accident year 2017 [Member] | Other business | ||||
Claims Reserve by Loss Year | ||||
Incurred but Not Reported (IBNR) Claims Liability | $ 1,121 |
Claims Reserve (Details) Narrat
Claims Reserve (Details) Narrative - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | ||||
Increase (Decrease) in Claims Reserve and Loss Adjustment | $ 1,259 | $ 1,244 | ||
Subscription business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) | 1,100 | |||
Current Year Claims Incurred | 74,244 | 58,162 | ||
Current Year Claims Paid | 65,549 | 51,844 | ||
Claims expense non-cash | 229 | 187 | ||
Claims Reserve | 9,609 | 6,559 | $ 8,538 | $ 5,384 |
Prior Years Claims Paid | 7,138 | 5,415 | ||
Other business | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) | 200 | |||
Current Year Claims Incurred | 6,337 | 4,427 | ||
Current Year Claims Paid | 5,217 | 3,484 | ||
Claims expense non-cash | 0 | 0 | ||
Claims Reserve | 1,211 | 1,023 | $ 983 | $ 890 |
Prior Years Claims Paid | $ 764 | $ 832 |
Equity Method Investment (Detai
Equity Method Investment (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 1 |
Segments (Details) Business Seg
Segments (Details) Business Segment - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 58,275 | $ 45,832 | $ 113,004 | $ 88,531 |
Claims expenses | 41,009 | 32,466 | 80,196 | 63,070 |
Other cost of revenue | 6,915 | 5,100 | 13,302 | 9,891 |
Gross profit | 10,351 | 8,266 | 19,506 | 15,570 |
Sales and marketing | 4,372 | 3,564 | 8,461 | 7,404 |
Technology and Development | 2,322 | 2,164 | 4,725 | 4,451 |
General and administrative | 4,245 | 3,495 | 8,257 | 7,217 |
Operating loss | (588) | (957) | (1,937) | (3,502) |
Subscription business | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 52,641 | 42,162 | 102,870 | 81,305 |
Claims expenses | 37,664 | 30,111 | 73,987 | 58,621 |
Other cost of revenue | 4,927 | 4,047 | 9,850 | 7,740 |
Gross profit | 10,050 | 8,004 | 19,033 | 14,944 |
Sales and marketing | 4,309 | 3,509 | 8,350 | 7,311 |
Other business | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,634 | 3,670 | 10,134 | 7,226 |
Claims expenses | 3,345 | 2,355 | 6,209 | 4,449 |
Other cost of revenue | 1,988 | 1,053 | 3,452 | 2,151 |
Gross profit | 301 | 262 | 473 | 626 |
Sales and marketing | $ 63 | $ 55 | $ 111 | $ 93 |
Segments (Details) Revenue by G
Segments (Details) Revenue by Geography - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 58,275 | $ 45,832 | $ 113,004 | $ 88,531 |
CANADA | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,969 | 9,084 | 21,564 | 17,306 |
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 47,306 | $ 36,748 | $ 91,440 | $ 71,225 |