TRUPANION, INC., 10-Q filed on 8/5/2020
Quarterly Report
v3.20.2
Cover Page Document - shares
6 Months Ended
Jun. 30, 2020
Jul. 28, 2020
Cover Page [Abstract]    
Entity Central Index Key 0001371285  
Entity Common Stock, Shares Outstanding   35,268,571
Entity Shell Company false  
Entity Filer Category Large Accelerated Filer  
Entity Interactive Data Current Yes  
Entity Current Reporting Status Yes  
Title of 12(b) Security Common stock, $0.00001 par value per share  
City Area Code (855)  
Entity Address, Address Line One 6100 4th Avenue S, Suite 200  
Entity Address, City or Town Seattle,  
Entity Incorporation, State or Country Code DE  
Document Period End Date Jun. 30, 2020  
Document Transition Report false  
Document Quarterly Report true  
Entity File Number 001-36537  
Entity Tax Identification Number 83-0480694  
Entity Address, State or Province WA  
Entity Address, Postal Zip Code 98108  
Local Phone Number 727 - 9079  
Trading Symbol TRUP  
Security Exchange Name NASDAQ  
Entity Small Business false  
Entity Emerging Growth Company false  
Current Fiscal Year End Date --12-31  
Document Type 10-Q  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Registrant Name TRUPANION, INC.  
v3.20.2
Consolidated Statement of Operations - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement [Abstract]        
Revenue $ 117,920,000 $ 92,199,000 $ 229,221,000 $ 179,177,000
Cost of Revenue [Abstract]        
Veterinary invoice expense 82,049,000 65,933,000 161,689,000 127,215,000
Other Cost of Services Sold 16,004,000 11,553,000 29,813,000 22,217,000
Gross profit 19,867,000 14,713,000 37,719,000 29,745,000
Operating Expenses [Abstract]        
Technology and Development Expense 2,989,000 2,578,000 5,834,000 5,247,000
General and Administrative Expense 6,100,000 5,219,000 11,616,000 10,638,000
Selling and Marketing Expense 9,242,000 8,757,000 19,684,000 16,984,000
Operating Expenses 18,331,000 16,554,000 37,134,000 32,869,000
Income (Loss) from Equity Method Investments (27,000) (272,000) (86,000) (272,000)
Operating income (loss) 1,509,000 (2,113,000) 499,000 (3,396,000)
Interest expense 341,000 317,000 720,000 634,000
Other income, net (202,000) (453,000) (484,000) (797,000)
Income (Loss) before income taxes 1,370,000 (1,977,000) 263,000 (3,233,000)
Income tax expense (benefit) 17,000 (46,000) 43,000 (6,000)
Net income (loss) $ 1,353,000 $ (1,931,000) $ 220,000 $ (3,227,000)
Earnings Per Share, Basic $ 0.04 $ (0.06) $ 0.01 $ (0.09)
Earnings Per Share, Diluted $ 0.04 $ (0.06) $ 0.01 $ (0.09)
Weighted Average Number of Shares Outstanding, Basic 35,143,592 34,610,709 35,075,322 34,450,070
Weighted Average Number of Shares Outstanding, Diluted 36,688,167 34,610,709 36,601,927 34,450,070
v3.20.2
Consolidated Statement of Comprehensive Income Statement - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 1,353,000 $ (1,931,000) $ 220,000 $ (3,227,000)
Foreign currency translation adjustments 291,000 138,000 (339,000) 328,000
Net unrealized gain on available-for-sale debt securities 5,000 0 0 18,000
Other comprehensive income (loss), net of taxes 296,000 138,000 (339,000) 346,000
Comprehensive Income (Loss) $ 1,649,000 $ (1,793,000) $ (119,000) $ (2,881,000)
v3.20.2
Consolidated Balance Sheet - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Assets [Abstract]    
Cash and cash equivalents $ 30,013 $ 29,168
Short-term Investments 75,162 69,732
Accounts and other receivables 80,724 54,408
Prepaid expenses and other assets 5,888 5,513
Total current assets 191,787 158,821
Restricted Cash 1,400 1,400
Long-Term Investments, at fair value 4,462 4,323
Property and equipment, net 71,018 70,372
Intangible assets, net 7,111 7,731
Other Long-Term Assets 14,495 14,553
Total assets 290,273 257,200
Liabilities and Equity [Abstract]    
Accounts payable 2,928 4,087
Accrued liabilities and other current liabilities 15,017 13,798
Reserve for veterinary invoices 24,380 21,194
Deferred Revenue 75,658 52,546
Total current liabilities 117,983 91,625
Long-term debt 27,347 26,086
Deferred Income Tax Liabilities, Net 1,118 1,118
Other liabilities 1,916 1,611
Total liabilities 148,364 120,440
Common stock 0 0
Preferred Stock 0 0
Additional paid-in capital 238,077 232,731
Accumulated other comprehensive loss (89) 250
Accumulated deficit (85,300) (85,520)
Treasury stock, at cost (10,779) (10,701)
Stockholders' Equity Attributable to Parent 141,909 136,760
Total liabilities and stockholders' equity $ 290,273 $ 257,200
v3.20.2
Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - $ / shares
Jun. 30, 2020
Dec. 31, 2019
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 36,179,457 35,876,882
Common Stock, Shares, Outstanding 35,246,292 34,947,017
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 933,165 929,865
v3.20.2
Consolidated Statement of Stockholders' Equity Statement - USD ($)
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Treasury Stock [Member]
Common Stock, Shares, Outstanding Period Start at Dec. 31, 2018   34,025,136        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Redemption of warrants   306,120        
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings   451,068        
Common Stock, Shares, Outstanding Period End at Jun. 30, 2019   34,782,324        
Stockholders' Equity Attributable to Parent Period Beginning at Dec. 31, 2018 $ 129,173,000 $ 0 $ 219,838,000 $ (83,711,000) $ (753,000) $ (6,201,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Settlement of warrant liabilities 300,000   4,800,000     (4,500,000)
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings 1,092,000   1,092,000      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 3,339,000   3,339,000      
Other Comprehensive Income (Loss), Net of Tax 346,000       346,000  
Net Income (Loss) Available to Common Stockholders, Basic (3,227,000)     (3,227,000)    
Stockholders' Equity Attributable to Parent Period End at Jun. 30, 2019 131,023,000 $ 0 229,069,000 (86,938,000) (407,000) (10,701,000)
Common Stock, Shares, Outstanding Period Start at Mar. 31, 2019   34,467,465        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Redemption of warrants   30,000        
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings   284,859        
Common Stock, Shares, Outstanding Period End at Jun. 30, 2019   34,782,324        
Stockholders' Equity Attributable to Parent Period Beginning at Mar. 31, 2019 130,009,000 $ 0 226,262,000 (85,007,000) (545,000) (10,701,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Settlement of warrant liabilities 300,000   300,000     0
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings 585,000   585,000      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 1,922,000   1,922,000      
Other Comprehensive Income (Loss), Net of Tax 138,000       138,000  
Net Income (Loss) Available to Common Stockholders, Basic (1,931,000)     (1,931,000)    
Stockholders' Equity Attributable to Parent Period End at Jun. 30, 2019 $ 131,023,000 $ 0 229,069,000 (86,938,000) (407,000) (10,701,000)
Common Stock, Shares, Outstanding Period Start at Dec. 31, 2019 34,947,017 34,947,017        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings   302,575        
Common Stock, Shares, Outstanding Period End at Jun. 30, 2020 35,246,292 35,246,292        
Stockholders' Equity Attributable to Parent Period Beginning at Dec. 31, 2019 $ 136,760,000 $ 0 232,731,000 (85,520,000) 250,000 (10,701,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings 1,346,000   1,346,000      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition $ 4,000,000   4,000,000      
Stock Repurchased During Period, Shares (3,300)          
Other Comprehensive Income (Loss), Net of Tax $ (339,000)       (339,000)  
Net Income (Loss) Available to Common Stockholders, Basic 220,000     220,000    
Stockholders' Equity Attributable to Parent Period End at Jun. 30, 2020 141,909,000 $ 0 238,077,000 (85,300,000) (89,000) (10,779,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Treasury Stock, Value, Acquired, Cost Method $ (78,000)          
Common Stock, Shares, Outstanding Period Start at Mar. 31, 2020   35,084,505        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings   161,787        
Common Stock, Shares, Outstanding Period End at Jun. 30, 2020 35,246,292 35,246,292        
Stockholders' Equity Attributable to Parent Period Beginning at Mar. 31, 2020 $ 136,825,000 $ 0 234,642,000 (86,653,000) (385,000) (10,779,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings 1,141,000   1,141,000      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 2,294,000   2,294,000      
Other Comprehensive Income (Loss), Net of Tax 296,000       296,000  
Net Income (Loss) Available to Common Stockholders, Basic 1,353,000     1,353,000    
Stockholders' Equity Attributable to Parent Period End at Jun. 30, 2020 $ 141,909,000 $ 0 $ 238,077,000 $ (85,300,000) $ (89,000) $ (10,779,000)
v3.20.2
Consolidated Statement of Cash Flows - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Statement of Cash Flows [Abstract]    
Net Income (Loss) Available to Common Stockholders, Basic $ 220,000 $ (3,227,000)
Net Loss 220,000 (3,227,000)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]    
Depreciation and Amortization 3,104,000 3,177,000
Stock-based compensation expense 3,880,000 3,230,000
Other, Net 102,000 97,000
Increase (Decrease) in Operating Assets [Abstract]    
Accounts and other receivables (26,102,000) (11,940,000)
Prepaid expenses and other assets (444,000) 989,000
Accounts Payable, Accrued Liabilities, and Other Liabilities 516,000 1,443,000
Claims Reserve 3,264,000 2,145,000
Deferred revenue 23,234,000 10,967,000
Net cash provided by operating activities 7,774,000 6,881,000
Net Cash Provided by Investing Activities [Abstract]    
Payments to Acquire Investments (26,550,000) (32,222,000)
Maturities of Investment Securities 20,804,000 21,895,000
Purchases of property and equipment (3,239,000) (1,780,000)
Payments for (Proceeds from) Other Investing Activities 107,000 (1,474,000)
Net cash used in investing activities (8,878,000) (13,581,000)
Net Cash Provided by Financing Activities [Abstract]    
Proceeds from exercise of stock options 1,667,000 1,626,000
Payments Related to Tax Withholding for Share-based Compensation (441,000) (247,000)
Proceeds from Debt, Net of Issuance Costs 3,735,000 6,167,000
Repayments of Long-term Debt (2,500,000) 0
Proceeds from (Payments for) Other Financing Activities (78,000) (415,000)
Net cash provided by financing activities 2,383,000 7,131,000
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net (434,000) 396,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect 845,000 827,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance 30,568,000 27,952,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance 31,413,000 28,779,000
Supplemental Cash Flow Information [Abstract]    
Redemption of Warrants Non-Cash; Common Stock 0 4,500,000
Purchases of property and equipment included in accounts payable and accrued liabilities $ 273,000 $ 637,000
v3.20.2
Nature of Operations and Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2020
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, 2019 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), stockholders' equity and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 13, 2020 (the 2019 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2019 10-K. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2019 10-K for additional discussion of these estimates and assumptions.
Recently Adopted Accounting Pronouncements
The Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326), using the modified retrospective approach on January 1, 2020. The ASU replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The new standard did not have a material impact on the Company's consolidated statements of operations, balance sheets, stockholders' equity, or cash flows. The Company did not record any cumulative-effect adjustment to its retained earnings upon the adoption.
v3.20.2
Net Loss per Share
6 Months Ended
Jun. 30, 2020
Earnings Per Share, Basic and Diluted [Abstract]  
Earnings Per Share [Text Block] Net Income (Loss) per Share
Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is calculated using the weighted average number of shares of common stock plus, when dilutive, potential shares of common stock outstanding using the treasury-stock method. Potential shares of common stock outstanding include stock options, unvested restricted stock awards and restricted stock units, and warrants.
The components of basic and diluted earnings per share were as follows (in thousands except share and per share information):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Basic earnings per share:
Net income (loss)$1,353  $(1,931) $220  $(3,227) 
Shares used in computation:
Weighted average shares of common stock outstanding35,143,592  34,610,709  35,075,322  34,450,070  
Basic earnings per share$0.04  $(0.06) $0.01  $(0.09) 
Diluted earnings per share:
Net income (loss)$1,353  $(1,931) $220  $(3,227) 
Shares used in computation:
Weighted average shares of common stock outstanding35,143,592  34,610,709  35,075,322  34,450,070  
Stock options1,390,249  —  1,382,192  —  
Restricted stock awards and units154,326  —  144,413  —  
Weighted average shares of diluted common stock outstanding36,688,167  34,610,709  36,601,927  34,450,070  
Diluted earnings per share$0.04  $(0.06) $0.01  $(0.09) 

The following potentially dilutive equity securities were not included in the diluted earnings per share of common stock calculation because they would have had an antidilutive effect:
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Stock options—  2,253,995  —  2,253,995  
Restricted stock awards and restricted stock units56,311  715,941  56,311  715,941  
v3.20.2
Investment Securities (Notes)
6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Cost and Equity Method Investments Disclosure [Text Block] Long-term investments are classified as available-for-sale and reported at fair value with unrealized gains and losses included in accumulated other comprehensive income (loss). Short-term investments are classified as held-to-maturity and reported at amortized cost. 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 June 30, 2020 and December 31, 2019 (in thousands):
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Fair
Value
As of June 30, 2020
Long-term investments:
Foreign deposits$3,461  $—  $—  $3,461  
Municipal bond1,000   —  1,001  
$4,461  $ $—  $4,462  
       Short-term investments:
              U.S. Treasury securities$6,162  $—  $—  $6,162  
              Certificates of deposit1,610  —  —  1,610  
              U.S. government funds67,390  —  —  67,390  
$75,162  $—  $—  $75,162  
 Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Fair
Value
As of December 31, 2019
Long-term investments:
Foreign deposits$3,323  $—  $—  $3,323  
Municipal bond1,000  —  —  1,000  
$4,323  $—  $—  $4,323  
Short-term investments:
U.S. Treasury securities$6,156  $—  $(1) $6,155  
Certificates of deposit440  —  —  440  
U.S. government funds63,136  —  —  63,136  
$69,732  $—  $(1) $69,731  
Maturities of debt securities classified as available-for-sale were as follows (in thousands):
 As of June 30, 2020
 Amortized
Cost
Fair
Value
Available-for-sale:
Due after one year through five years$4,461  $4,462  
$4,461  $4,462  

The Company does not expect any credit losses from its held-to-maturity investments, considering the composition of the investment portfolio and the credit loss history of these investments. For available-for-sale debt securities, the Company determined that the unrealized losses were immaterial and due to non-credit factors. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell, the securities prior to maturity or prior to the recovery of the amortized cost basis.
v3.20.2
Other Investments (Notes)
6 Months Ended
Jun. 30, 2020
Investments, All Other Investments [Abstract]  
Investments and Other Noncurrent Assets [Text Block] Other Investments
Investment in Variable Interest Entity
In July 2018, the Company purchased $3.0 million in preferred stock of a privately held corporation with a complementary business line. In October 2019, the Company purchased an additional $4.0 million in preferred stock upon the exercise of an option by the variable interest entity. 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 on the fifth anniversary of the initial preferred stock purchase.
Additionally, the Company has extended a $2.5 million revolving line of credit to the variable interest entity to fund its inventory purchases. The Company's investment and amounts loaned under the line of credit are recorded in other long-term assets on its consolidated balance sheet. The outstanding loan balance under the line of credit was $2.5 million as of June 30, 2020 and December 31, 2019. The Company has also entered into a series of agreements to provide ancillary services to the variable interest entity at cost. The Company provided $0.7 million and $0.6 million of these services for the six months ended June 30, 2020 and 2019, respectively, which were recorded against its operating expenses.
Investment in Joint Venture
In September 2018, the Company acquired a non-controlling equity interest in a joint venture, whereby it has committed to licensing certain intellectual property and contributing up to $2.2 million AUD upon the achievement of specific operational milestones over a period of at least four years from the agreement execution date. As of June 30, 2020, the Company has contributed $0.5 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.
v3.20.2
Fair Value
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block] Fair Value
Investments
The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands):
 As of June 30, 2020
 Fair ValueLevel 1Level 2Level 3
Assets
Restricted cash$1,400  $1,400  $—  $—  
Money market funds1,053  1,053  —  —  
Fixed maturities:
Foreign deposits3,461  3,461  —  —  
Municipal bond1,001  —  1,001  —  
Investment in variable interest entity7,625  —  —  7,625  
Total$14,540  $5,914  $1,001  $7,625  
 As of December 31, 2019
 Fair ValueLevel 1Level 2Level 3
Assets
Restricted cash$1,400  $1,400  $—  $—  
Money market funds1,050  1,050  —  —  
Fixed maturities:
Foreign deposits3,323  3,323  —  —  
Municipal bond1,000  —  1,000  —  
Investment in variable interest entity7,625  —  —  7,625  
Total$14,398  $5,773  $1,000  $7,625  

The Company measures the fair value of restricted cash, money market funds, and foreign deposits based on quoted prices in active markets for identical assets. The fair value of the municipal bond is based on either recent trades in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. Short-term investments are carried at amortized cost, and the fair value and changes in unrealized gains (losses) are disclosed in Note 3, Investments. The fair value of these investments is determined in the same manner as for available-for-sale securities and is considered a Level 1 measurement.
The Company's preferred stock investment in the variable interest entity (see Note 4) is accounted for as an available-for-sale debt security and measured at fair value at each balance sheet date. The estimated fair value of the preferred stock investment is a Level 3 measurement and is based on certain unobservable inputs such as the value of the underlying enterprise, volatility, time to liquidity, and market interest rates. An increase or decrease in any of these unobservable inputs would result in a change in the fair value measurement. Estimated fair value was $7.6 million as of June 30, 2020, unchanged from December 31, 2019, recorded in other long-term assets on the Company's consolidated balance sheet. An unrealized gain of $0.6 million was recorded in other comprehensive income in the quarter ended December 31, 2019.
Fair Value Disclosures
The Company's other long-term assets balance included notes receivable of $6.0 million as of June 30, 2020 and $6.1 million as of December 31, 2019, 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 six months ended June 30, 2020.

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, 2020 and December 31, 2019.

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 six months ended June 30, 2020 and the year ended December 31, 2019.
v3.20.2
Debt
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block] Debt The Company has a revolving line of credit of up to $50.0 million, maturing June 2022. The facility is secured by any and all interests in the Company's assets that are not otherwise restricted. Interest on the revolving line of credit is payable monthly at the greater of 4.5%, or 0.75% plus the prime rate (4.50% at June 30, 2020). The credit agreement includes other ancillary services and letters of credit of up to $4.5 million. It also requires a deposit of restricted cash of $1.4 million and a minimum cash or investment balance of $2.1 million. The credit agreement requires the Company to comply with various financial and non-financial covenants. As of June 30, 2020, the Company was in compliance with all financial and non-financial covenants required by the credit agreement. Borrowings on the revolving line of credit are limited to the lesser of $50.0 million or the total amount of cash and securities held by the Company's insurance subsidiaries (American Pet Insurance Company and Wyndham Insurance Company (SAC) Limited Segregated Account AX). As of June 30, 2020, available borrowing capacity on the line of credit was $22.2 million, with an outstanding balance of $0.3 million for ancillary services and letters of credit, and borrowings under the facility of $27.5 million, recorded net of financing fees of $0.1 million.
v3.20.2
Commitment and Contingencies
6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block] Commitments and Contingencies
Certain state insurance regulators in the United States have contacted the Company regarding whether employees who had helped prospective members enroll by telephone in prior years were required to have an insurance license to conduct such telephone conversations. To date, the Company has resolved each of these matters in non-material amounts and believes it is compliant with the applicable regulations. The Company is currently engaged with a limited number of state insurance regulators to resolve this same legacy issue and believes it has adequately reserved for these matters.
In addition, from time to time the Company is or may become subject to various legal proceedings arising in the ordinary course of business, including proceedings against members, other entities or regulatory bodies. Estimated liabilities are recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. At this time, the Company does not believe any such matters to be material individually or in the aggregate. These views are subject to change following the outcome of future events or the results of future developments.
v3.20.2
Claims Reserve
6 Months Ended
Jun. 30, 2020
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]  
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Disclosure [Text Block] Reserve for Veterinary 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 is continually refined as the Company receives and pays veterinary invoices. Changes in management's assumptions and estimates may have a relatively large impact to the reserve and associated expense.
Reserve for veterinary invoices
Summarized below are the changes in the total liability for the Company's subscription business segment (in thousands):
 Six Months Ended June 30,
Subscription20202019
Reserve at beginning of year$15,541  $13,875  
Veterinary invoices during the period related to:
Current year130,825  110,248  
Prior years393  551  
Total veterinary invoice expense131,218  110,799  
Amounts paid during the period related to:
Current year116,676  97,165  
Prior years12,129  11,364  
Total paid128,805  108,529  
Non-cash expenses514  369  
Reserve at end of period$17,440  $15,776  

The Company's reserve for the subscription business segment increased from $15.5 million at December 31, 2019 to $17.4 million at June 30, 2020. This change was comprised of $131.2 million in expense recorded during the period less $128.8 million in payments of veterinary invoices. The $131.2 million in veterinary invoice expense incurred included an adjustment of $0.4 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. For the six months ended June 30, 2019, the Company increased prior year reserves by $0.6 million as a result of analysis of payment trends.
Summarized below are the changes in total liability for the Company's other business segment (in thousands):
 Six Months Ended June 30,
Other Business20202019
Reserve at beginning of year$5,653  $2,187  
Veterinary invoices during the period related to:
Current year30,650  16,747  
Prior years(179) (331) 
Total veterinary invoice expense30,471  16,416  
Amounts paid during the period related to:
Current year23,994  14,431  
Prior years5,190  1,668  
Total paid29,184  16,099  
Non-cash expenses—  —  
Reserve at end of period$6,940  $2,504  
The Company’s reserve for the other business segment increased from $5.7 million at December 31, 2019 to $6.9 million at June 30, 2020. This change was comprised of $30.5 million in expense recorded during the period less $29.2 million in payments of veterinary invoices. The $30.5 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. For the six months ended June 30, 2019, the Company decreased prior year reserves by $0.3 million as a result of analysis of payment trends.
Reserve for veterinary invoices, by year of occurrence
In the following tables, the reserve for veterinary invoices for each segment is presented as the amount (in thousands) by the year to which the veterinary invoice relates, referred to as the year of occurrence.
SubscriptionAs of June 30, 2020
Year of Occurrence
2018 and prior$972  
20192,832  
202013,636  
$17,440  

Other Business As of June 30, 2020
Year of Occurrence
2018 and prior$45  
2019239  
20206,656  
$6,940  
v3.20.2
Stock-based Compensation
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] Stock-Based Compensation
Stock-based compensation expense includes stock options, restricted stock awards, 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 the consolidated statements of operations was as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Veterinary invoice expense$245  $185  $423  $346  
Other cost of revenue99  93  189  179  
Technology and development133  110  233  173  
General and administrative1,075  918  1,804  1,536  
Sales and marketing675  567  1,231  996  
Total stock-based compensation expense2,227  1,873  3,880  3,230  
Capitalized stock-based compensation67  49  120  109  
Total stock-based compensation$2,294  $1,922  $4,000  $3,339  

As of June 30, 2020, the Company had 101,341 unvested stock options and 812,143 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expenses of $0.7 million related to unvested stock options and $21.8 million related to unvested restricted stock awards and restricted stock units are expected to be recognized over a weighted average period of approximately 0.8 years and 3.1 years, respectively.
Stock Options
A summary of the Company's stock option activity is as follows:
Number of OptionsWeighted Average Exercise Price per ShareAggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 20192,097,978  $9.86  $57,907  
Granted—  —  —  
Exercised(156,295) 11.43  3,531  
Forfeited(11,332) 17.59  —  
Outstanding as of June 30, 20201,930,351  9.69  63,709  
Exercisable as of June 30, 20201,829,010  $9.23  $61,194  

As of June 30, 2020, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.5 years and 4.4 years, respectively.
Restricted Stock Awards and Restricted Stock Units
A summary of the Company’s restricted stock award and restricted stock unit activity is as follows:
Number of 
Shares
Weighted Average
Grant Date Fair Value per Share
Unvested shares as of December 31, 2019581,943  $29.56  
Granted439,690  27.34  
Vested(160,169) 29.08  
Forfeited(49,321) 29.81  
Unvested shares as of June 30, 2020812,143  $28.44  
v3.20.2
Leases (Notes)
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases of Lessor Disclosure [Text Block] 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. Leases with an initial term of 12 months or less are not recorded on its consolidated balance sheets.
The Company also leases a portion of its building to third parties and records related rental income within general and administrative expense in the consolidated statements of operations. These leases have remaining initial lease terms of 2 years to 8 years, some of which give the tenants options to renew the leases for up to an additional 10 years, and options to terminate the leases after 3 years of the initial lease terms, with early termination fees required. The Company recorded rental income of $0.5 million and $1.1 million for the three and six months ended June 30, 2020.
v3.20.2
Stockholders' Equity (Notes)
6 Months Ended
Jun. 30, 2020
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity Note Disclosure [Text Block] Stockholders' Equity
Common Stock and Preferred Stock
As of June 30, 2020, the Company had 100,000,000 shares of common stock authorized and 35,246,292 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 June 30, 2020, 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, 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 is unable to pay dividends to stockholders as of June 30, 2020 due to restrictions in its credit agreements.
Share Repurchase Program
In November 2019, the Company's board of directors approved a share repurchase program, pursuant to which the Company may repurchase up to $15.0 million of its outstanding shares over the twelve-month period following the approval. The Company repurchased 3,300 shares during the six months ended June 30, 2020. The Company did not repurchase any shares during the three months ended June 30, 2020 or the year ended December 31, 2019.
v3.20.2
Segments
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segments
The Company has two segments: subscription business and other business. The subscription business segment includes revenue and expenses related to monthly pet insurance subscriptions 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 reviews revenue, gross profit, and operating income (loss) to evaluate segment performance. Revenue, veterinary invoice expense, other cost of revenue, and sales and marketing expenses are generally directly attributed to each segment. Other operating expenses, such as technology and development expense and general and administrative expense, are allocated proportionately based on revenue in each segment. Interest and other expenses and income taxes are not allocated to the segments, nor included in the measure of segment profit or loss. The Company does not analyze discrete segment balance sheet information related to long-term assets.
Operating income (loss) of the Company’s segments were as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Subscription business:
Revenue$92,453  $77,736  $181,937  $151,958  
Veterinary invoice expense66,030  57,161  131,218  110,799  
Other cost of revenue8,564  7,103  16,798  13,852  
Gross profit17,859  13,472  33,921  27,307  
Technology and development2,343  2,174  4,630  4,450  
General and administrative4,783  4,400  9,218  9,022  
Sales and marketing9,051  8,719  19,330  16,816  
Subscription business operating income (loss)1,682  (1,821) 743  (2,981) 
Other business:
Revenue25,467  14,463  47,284  27,219  
Veterinary invoice expense16,019  8,772  30,471  16,416  
Other cost of revenue7,440  4,450  13,015  8,365  
Gross profit2,008  1,241  3,798  2,438  
Technology and development646  404  1,204  797  
General and administrative1,317  819  2,398  1,616  
Sales and marketing191  38  354  168  
Other business operating income (loss)(146) (20) (158) (143) 
Gain (loss) from investment in joint venture(27) (272) (86) (272) 
Total operating income (loss)$1,509  $(2,113) $499  $(3,396) 
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,
 2020201920202019
United States$99,056  $75,930  $191,580  $147,087  
Canada18,864  16,269  37,641  32,090  
Total revenue$117,920  $92,199  $229,221  $179,177  
Substantially all of the Company’s long-lived assets were located in the United States as of June 30, 2020 and December 31, 2019.
v3.20.2
Related Parties (Notes)
6 Months Ended
Jun. 30, 2020
Related Parties [Abstract]  
Related Party Transactions Disclosure [Text Block] Related PartiesIn August 2018, the Company invested $0.3 million in a limited liability entity in exchange for a 17.5% ownership interest. The investee is considered to be a related party, as the Company has the ability to exercise significant influence over the investee. In February 2020, the Company entered into a service agreement with the investee, under which the Company incurred $0.6 million and $1.1 million of expenses for consulting services provided by the investee during the three and six months ended June 30, 2020, respectively.
v3.20.2
Nature of Operations and Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business Description and Basis of Presentation [Text Block]
Description of Business and Basis of Presentation
Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) provides medical insurance for cats and dogs throughout the United States, Canada and Puerto Rico.
The financial data as of December 31, 2019 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), stockholders' equity and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 13, 2020 (the 2019 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2019 10-K. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2019 10-K for additional discussion of these estimates and assumptions.
Basis of Accounting, Policy [Policy Text Block] The financial data as of December 31, 2019 was derived from the Company's audited consolidated financial statements. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and, in management's opinion, have been prepared on the same basis as the audited financial statements and include all adjustments, consisting of normal recurring adjustments, necessary for the fair presentation of the Company's financial position, results of operations, comprehensive income (loss), stockholders' equity and cash flows for the interim periods. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (SEC) on February 13, 2020 (the 2019 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2019 10-K. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period.
Use of Estimates [Policy Text Block]
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2019 10-K for additional discussion of these estimates and assumptions.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Adopted Accounting Pronouncements
The Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326), using the modified retrospective approach on January 1, 2020. The ASU replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The new standard did not have a material impact on the Company's consolidated statements of operations, balance sheets, stockholders' equity, or cash flows. The Company did not record any cumulative-effect adjustment to its retained earnings upon the adoption.
v3.20.2
Other Investments Investment in Variable Interest Entity (Policies)
6 Months Ended
Jun. 30, 2020
Investments, All Other Investments [Abstract]  
Variable Interest Entity Disclosure [Text Block]
Investment in Variable Interest Entity
In July 2018, the Company purchased $3.0 million in preferred stock of a privately held corporation with a complementary business line. In October 2019, the Company purchased an additional $4.0 million in preferred stock upon the exercise of an option by the variable interest entity. 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 on the fifth anniversary of the initial preferred stock purchase.
Additionally, the Company has extended a $2.5 million revolving line of credit to the variable interest entity to fund its inventory purchases. The Company's investment and amounts loaned under the line of credit are recorded in other long-term assets on its consolidated balance sheet. The outstanding loan balance under the line of credit was $2.5 million as of June 30, 2020 and December 31, 2019.
v3.20.2
Other Investments Investment in Joint Venture (Policies)
6 Months Ended
Jun. 30, 2020
Investments, All Other Investments [Abstract]  
Equity Method Investments and Joint Ventures Disclosure [Text Block] Investment in Joint VentureIn September 2018, the Company acquired a non-controlling equity interest in a joint venture, 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 June 30, 2020, the Company has contributed $0.5 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.
v3.20.2
Fair Value Notes Receivable (Policies)
6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
The Company's other long-term assets balance included notes receivable of $6.0 million as of June 30, 2020 and $6.1 million as of December 31, 2019, 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 six months ended June 30, 2020.

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, 2020 and December 31, 2019.

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 six months ended June 30, 2020 and the year ended December 31, 2019.
v3.20.2
Claims Reserve Claims Reserve (Policies)
6 Months Ended
Jun. 30, 2020
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]  
Liability Reserve Estimate, Policy [Policy Text Block] Reserve for Veterinary InvoicesThe reserve for veterinary invoices is an estimate of the future amount the Company will pay for veterinary invoices that are dated as of, or prior to, its balance sheet date. The reserve also includes the Company's estimate of related internal processing costs. The reserve estimate involves actuarial projections, and is based on management's assessment of facts and circumstances currently known, and assumptions about anticipated patterns. The Company uses generally accepted actuarial methodologies, such as paid loss development methods, in estimating the amount of the reserve for veterinary invoices. The reserve is made for each of the Company's segments, subscription and other business, and is continually refined as the Company receives and pays veterinary invoices. Changes in management's assumptions and estimates may have a relatively large impact to the reserve and associated expense.
v3.20.2
Segments Segments (Policies)
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting, Policy [Policy Text Block] The Company has two segments: subscription business and other business. The subscription business segment includes revenue and expenses related to monthly pet insurance subscriptions 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 reviews revenue, gross profit, and operating income (loss) to evaluate segment performance. Revenue, veterinary invoice expense, other cost of revenue, and sales and marketing expenses are generally directly attributed to each segment. Other operating expenses, such as technology and development expense and general and administrative expense, 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.
v3.20.2
Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The components of basic and diluted earnings per share were as follows (in thousands except share and per share information):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Basic earnings per share:
Net income (loss)$1,353  $(1,931) $220  $(3,227) 
Shares used in computation:
Weighted average shares of common stock outstanding35,143,592  34,610,709  35,075,322  34,450,070  
Basic earnings per share$0.04  $(0.06) $0.01  $(0.09) 
Diluted earnings per share:
Net income (loss)$1,353  $(1,931) $220  $(3,227) 
Shares used in computation:
Weighted average shares of common stock outstanding35,143,592  34,610,709  35,075,322  34,450,070  
Stock options1,390,249  —  1,382,192  —  
Restricted stock awards and units154,326  —  144,413  —  
Weighted average shares of diluted common stock outstanding36,688,167  34,610,709  36,601,927  34,450,070  
Diluted earnings per share$0.04  $(0.06) $0.01  $(0.09) 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following potentially dilutive equity securities were not included in the diluted earnings per share of common stock calculation because they would have had an antidilutive effect:
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Stock options—  2,253,995  —  2,253,995  
Restricted stock awards and restricted stock units56,311  715,941  56,311  715,941  
v3.20.2
Investment Securities Available-for-Sale (Tables)
6 Months Ended
Jun. 30, 2020
Investments [Abstract]  
Unrealized Gain (Loss) on Investments [Table Text Block] The amortized cost, gross unrealized holding gains and losses, and estimates of fair value of long-term and short-term investments by major security type and class of security were as follows as of June 30, 2020 and December 31, 2019 (in thousands):
Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Fair
Value
As of June 30, 2020
Long-term investments:
Foreign deposits$3,461  $—  $—  $3,461  
Municipal bond1,000   —  1,001  
$4,461  $ $—  $4,462  
       Short-term investments:
              U.S. Treasury securities$6,162  $—  $—  $6,162  
              Certificates of deposit1,610  —  —  1,610  
              U.S. government funds67,390  —  —  67,390  
$75,162  $—  $—  $75,162  
 Amortized
Cost
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Fair
Value
As of December 31, 2019
Long-term investments:
Foreign deposits$3,323  $—  $—  $3,323  
Municipal bond1,000  —  —  1,000  
$4,323  $—  $—  $4,323  
Short-term investments:
U.S. Treasury securities$6,156  $—  $(1) $6,155  
Certificates of deposit440  —  —  440  
U.S. government funds63,136  —  —  63,136  
$69,732  $—  $(1) $69,731  
Available-for-sale Securities [Table Text Block]
Maturities of debt securities classified as available-for-sale were as follows (in thousands):
 As of June 30, 2020
 Amortized
Cost
Fair
Value
Available-for-sale:
Due after one year through five years$4,461  $4,462  
$4,461  $4,462  
v3.20.2
Fair Value (Tables)
6 Months Ended
Jun. 30, 2020
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, 2020
 Fair ValueLevel 1Level 2Level 3
Assets
Restricted cash$1,400  $1,400  $—  $—  
Money market funds1,053  1,053  —  —  
Fixed maturities:
Foreign deposits3,461  3,461  —  —  
Municipal bond1,001  —  1,001  —  
Investment in variable interest entity7,625  —  —  7,625  
Total$14,540  $5,914  $1,001  $7,625  
 As of December 31, 2019
 Fair ValueLevel 1Level 2Level 3
Assets
Restricted cash$1,400  $1,400  $—  $—  
Money market funds1,050  1,050  —  —  
Fixed maturities:
Foreign deposits3,323  3,323  —  —  
Municipal bond1,000  —  1,000  —  
Investment in variable interest entity7,625  —  —  7,625  
Total$14,398  $5,773  $1,000  $7,625  
v3.20.2
Claims Reserve (Tables)
6 Months Ended
Jun. 30, 2020
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):
 Six Months Ended June 30,
Subscription20202019
Reserve at beginning of year$15,541  $13,875  
Veterinary invoices during the period related to:
Current year130,825  110,248  
Prior years393  551  
Total veterinary invoice expense131,218  110,799  
Amounts paid during the period related to:
Current year116,676  97,165  
Prior years12,129  11,364  
Total paid128,805  108,529  
Non-cash expenses514  369  
Reserve at end of period$17,440  $15,776  

The Company's reserve for the subscription business segment increased from $15.5 million at December 31, 2019 to $17.4 million at June 30, 2020. This change was comprised of $131.2 million in expense recorded during the period less $128.8 million in payments of veterinary invoices. The $131.2 million in veterinary invoice expense incurred included an adjustment of $0.4 million to the reserves relating to prior years, which was the result of ongoing analysis of recent payment trends. For the six months ended June 30, 2019, the Company increased prior year reserves by $0.6 million as a result of analysis of payment trends.
Summarized below are the changes in total liability for the Company's other business segment (in thousands):
 Six Months Ended June 30,
Other Business20202019
Reserve at beginning of year$5,653  $2,187  
Veterinary invoices during the period related to:
Current year30,650  16,747  
Prior years(179) (331) 
Total veterinary invoice expense30,471  16,416  
Amounts paid during the period related to:
Current year23,994  14,431  
Prior years5,190  1,668  
Total paid29,184  16,099  
Non-cash expenses—  —  
Reserve at end of period$6,940  $2,504  
The Company’s reserve for the other business segment increased from $5.7 million at December 31, 2019 to $6.9 million at June 30, 2020. This change was comprised of $30.5 million in expense recorded during the period less $29.2 million in payments of veterinary invoices. The $30.5 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. For the six months ended June 30, 2019, the Company decreased prior year reserves by $0.3 million as a result of analysis of payment trends.
IBRN plus expected development on reported claims[Table Text Block]
In the following tables, the reserve for veterinary invoices for each segment is presented as the amount (in thousands) by the year to which the veterinary invoice relates, referred to as the year of occurrence.
SubscriptionAs of June 30, 2020
Year of Occurrence
2018 and prior$972  
20192,832  
202013,636  
$17,440  

Other Business As of June 30, 2020
Year of Occurrence
2018 and prior$45  
2019239  
20206,656  
$6,940  
v3.20.2
Stock-based Compensation (Tables)
6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]
Stock-based compensation expense includes stock options, restricted stock awards, 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 the consolidated statements of operations was as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Veterinary invoice expense$245  $185  $423  $346  
Other cost of revenue99  93  189  179  
Technology and development133  110  233  173  
General and administrative1,075  918  1,804  1,536  
Sales and marketing675  567  1,231  996  
Total stock-based compensation expense2,227  1,873  3,880  3,230  
Capitalized stock-based compensation67  49  120  109  
Total stock-based compensation$2,294  $1,922  $4,000  $3,339  
As of June 30, 2020, the Company had 101,341 unvested stock options and 812,143 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expenses of $0.7 million related to unvested stock options and $21.8 million related to unvested restricted stock awards and restricted stock units are expected to be recognized over a weighted average period of approximately 0.8 years and 3.1 years, respectively.
Share-based Compensation, Stock Options, Activity [Table Text Block]
A summary of the Company's stock option activity is as follows:
Number of OptionsWeighted Average Exercise Price per ShareAggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 20192,097,978  $9.86  $57,907  
Granted—  —  —  
Exercised(156,295) 11.43  3,531  
Forfeited(11,332) 17.59  —  
Outstanding as of June 30, 20201,930,351  9.69  63,709  
Exercisable as of June 30, 20201,829,010  $9.23  $61,194  

As of June 30, 2020, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.5 years and 4.4 years, respectively.
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]
A summary of the Company’s restricted stock award and restricted stock unit activity is as follows:
Number of 
Shares
Weighted Average
Grant Date Fair Value per Share
Unvested shares as of December 31, 2019581,943  $29.56  
Granted439,690  27.34  
Vested(160,169) 29.08  
Forfeited(49,321) 29.81  
Unvested shares as of June 30, 2020812,143  $28.44  
v3.20.2
Segments (Tables)
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Revenue and Gross Profit from Segments [Table Text Block]
Operating income (loss) of the Company’s segments were as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Subscription business:
Revenue$92,453  $77,736  $181,937  $151,958  
Veterinary invoice expense66,030  57,161  131,218  110,799  
Other cost of revenue8,564  7,103  16,798  13,852  
Gross profit17,859  13,472  33,921  27,307  
Technology and development2,343  2,174  4,630  4,450  
General and administrative4,783  4,400  9,218  9,022  
Sales and marketing9,051  8,719  19,330  16,816  
Subscription business operating income (loss)1,682  (1,821) 743  (2,981) 
Other business:
Revenue25,467  14,463  47,284  27,219  
Veterinary invoice expense16,019  8,772  30,471  16,416  
Other cost of revenue7,440  4,450  13,015  8,365  
Gross profit2,008  1,241  3,798  2,438  
Technology and development646  404  1,204  797  
General and administrative1,317  819  2,398  1,616  
Sales and marketing191  38  354  168  
Other business operating income (loss)(146) (20) (158) (143) 
Gain (loss) from investment in joint venture(27) (272) (86) (272) 
Total operating income (loss)$1,509  $(2,113) $499  $(3,396) 
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,
 2020201920202019
United States$99,056  $75,930  $191,580  $147,087  
Canada18,864  16,269  37,641  32,090  
Total revenue$117,920  $92,199  $229,221  $179,177  
v3.20.2
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Employee Stock Option [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 0 2,253,995 0 2,253,995
Restricted Stock Units (RSUs) [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 56,311 715,941 56,311 715,941
v3.20.2
Net Loss per Share Computation of Net Income (Loss) Per Share (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Net Income (Loss) Available to Common Stockholders, Basic $ 1,353,000 $ (1,931,000) $ 220,000 $ (3,227,000)
Weighted Average Number of Shares Outstanding, Basic 35,143,592 34,610,709 35,075,322 34,450,070
Earnings Per Share, Basic $ 0.04 $ (0.06) $ 0.01 $ (0.09)
Weighted Average Number of Shares Outstanding, Diluted 36,688,167 34,610,709 36,601,927 34,450,070
Earnings Per Share, Diluted $ 0.04 $ (0.06) $ 0.01 $ (0.09)
Employee Stock Option [Member]        
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Weighted Average Number of Shares Outstanding, Diluted 1,390,249   1,382,192  
Restricted Stock Units (RSUs) [Member]        
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Weighted Average Number of Shares Outstanding, Diluted 154,326   144,413  
v3.20.2
Investment Securities (Details) Investment Schedule - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Schedule of Investments [Line Items]    
Debt Securities, Held-to-maturity $ 75,162 $ 69,732
Debt Securities, Available-for-sale 4,461 4,323
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax 1 0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain 0 0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax 0 0
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 4,462 4,323
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss 0 1
Debt Securities, Held-to-maturity, Fair Value 75,162 69,731
Deposits [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Available-for-sale 3,461 3,323
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax 0 0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax 0 0
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 3,461 3,323
Municipal Bonds [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Available-for-sale 1,000 1,000
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax 1 0
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax 0 0
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 1,001 1,000
US Treasury Securities [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Held-to-maturity 6,162 6,156
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain 0 0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss 0 1
Debt Securities, Held-to-maturity, Fair Value 6,162 6,155
Certificates of Deposit [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Held-to-maturity 1,610 440
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 1,610 440
US Government Debt Securities [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Held-to-maturity 67,390 63,136
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 $ 67,390 $ 63,136
v3.20.2
Investment Securities (Details) Available-for-Sale - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Abstract]    
Available-for-sale securities, debt maturities, year two through five, amortized cost basis $ 4,461  
Available-for-sale securities, debt maturities, year two through five, fair value 4,462  
Available-for-sale securities, amortized cost 4,461  
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value $ 4,462 $ 4,323
v3.20.2
Other Investments (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Investments, All Other Investments [Abstract]        
Purchase of Equity Interest     $ 4.0 $ 3.0
Other Commitment $ 2.2      
Increase (Decrease) in Notes Receivables 2.5      
Loans Receivable, Net 2.5   $ 2.5  
Payments to Acquire Interest in Joint Venture 0.5      
Services performed for Variable Interest Entity $ 0.7 $ 0.6    
v3.20.2
Fair Value (Details) Unobservable - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted Cash $ 1,400,000 $ 1,400,000
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 4,462,000 4,323,000
Noncontrolling Interest in Variable Interest Entity 7,625,000 7,625,000
Assets, Fair Value Disclosure 14,540,000 14,398,000
Notes Receivable, Fair Value Disclosure 6,000,000.0 6,100,000
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Noncontrolling Interest in Variable Interest Entity 0 0
Assets, Fair Value Disclosure 5,914,000 5,773,000
Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Noncontrolling Interest in Variable Interest Entity 0 0
Assets, Fair Value Disclosure 1,001,000 1,000,000
Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Noncontrolling Interest in Variable Interest Entity 7,625,000 7,625,000
Assets, Fair Value Disclosure 7,625,000 7,625,000
Cash and Cash Equivalents [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted Cash 1,400,000 1,400,000
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted Cash 1,400,000 1,400,000
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted Cash 0 0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted Cash 0 0
Deposits [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 3,461,000 3,323,000
Cash and Cash Equivalents, Fair Value Disclosure 1,053,000 1,050,000
Deposits [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 3,461,000 3,323,000
Cash and Cash Equivalents, Fair Value Disclosure 1,053,000 1,050,000
Deposits [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 0 0
Cash and Cash Equivalents, Fair Value Disclosure 0 0
Deposits [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 0 0
Cash and Cash Equivalents, Fair Value Disclosure 0 0
Municipal bond    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value 1,001,000 1,000,000
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value 1,001,000 1,000,000
Municipal bond | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value 0 0
Municipal bond | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value 1,001,000 1,000,000
Municipal bond | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value $ 0 $ 0
v3.20.2
Fair Value (Details) Narrative - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Mar. 31, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Note Receivable, Fair Value [Abstract]              
Net unrealized gain on available-for-sale debt securities $ 5   $ 0 $ 0 $ 18    
Notes Receivable, Fair Value Disclosure 6,000     6,000   $ 6,100  
Purchase of Equity Interest           4,000 $ 3,000
Noncontrolling Interest in Variable Interest Entity $ 7,625     $ 7,625   $ 7,625  
Unrealized Gain (Loss) on Investments   $ 600          
v3.20.2
Debt (Details) Narrative
$ in Millions
6 Months Ended
Jun. 30, 2020
USD ($)
Debt Disclosure [Abstract]  
Line of Credit Facility, Maximum Borrowing Capacity $ 50.0
Line of credit facility, interest rate description greater of 4.5%, or 0.75% plus the prime rate
Line of Credit Facility, Interest Rate During Period 4.50%
Line of Credit Facility, Ancillary Services and Letter of Credit $ 4.5
Restricted Cash and Cash Equivalents 1.4
Minimum Cash or Investment Balance Required 2.1
Line of Credit Facility, Remaining Borrowing Capacity 22.2
Line of Credit Facility, Ancillary Services and Letter of Credit 0.3
Long-term Line of Credit 27.5
Line of Credit Financing Fee $ 0.1
v3.20.2
Claims Reserve (Details) Claims Loss Roll-forward - Other business - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]        
Claims Reserve $ 6,940 $ 2,504 $ 5,653 $ 2,187
Current Year Claims Incurred 30,650 16,747    
Prior Year Claims Incurred (179) (331)    
Total Claims Incurred 30,471 16,416    
Current Year Claims Paid 23,994 14,431    
Prior Years Claims Paid 5,190 1,668    
Total Claims Paid 29,184 16,099    
Claims expense non-cash 0 $ 0    
Claims Reserve by Loss Year        
Incurred but Not Reported (IBNR) Claims Liability 6,940      
Short-duration Insurance Contracts, Accident Year 2019 [Member]        
Claims Reserve by Loss Year        
Incurred but Not Reported (IBNR) Claims Liability 239      
Short-duration Insurance Contracts, Accident Year 2020 [Member]        
Claims Reserve by Loss Year        
Incurred but Not Reported (IBNR) Claims Liability $ 6,656      
v3.20.2
Claims Reserve (Details) Narrative - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Subscription business        
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]        
Claims Reserve $ 17,440 $ 15,776 $ 15,541 $ 13,875
Total Claims Incurred 131,218 110,799    
Total Claims Paid 128,805 108,529    
Prior Year Claims Incurred 393 551    
Other business        
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]        
Claims Reserve 6,940 2,504 $ 5,653 $ 2,187
Total Claims Incurred 30,471 16,416    
Total Claims Paid 29,184 16,099    
Prior Year Claims Incurred $ (179) $ (331)    
v3.20.2
Claims Reserve Claims Reserve (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Subscription business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net $ 17,440      
Claims Reserve 17,440 $ 15,776 $ 15,541 $ 13,875
Current Year Claims Incurred 130,825 110,248    
Prior Year Claims Incurred 393 551    
Current Year Claims Paid 116,676 97,165    
Prior Years Claims Paid 12,129 11,364    
Total Claims Paid 128,805 108,529    
Claims expense non-cash 514 369    
Total Claims Incurred 131,218 110,799    
Other business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net 6,940      
Claims Reserve 6,940 2,504 $ 5,653 $ 2,187
Current Year Claims Incurred 30,650 16,747    
Prior Year Claims Incurred (179) (331)    
Current Year Claims Paid 23,994 14,431    
Prior Years Claims Paid 5,190 1,668    
Total Claims Paid 29,184 16,099    
Claims expense non-cash 0 0    
Total Claims Incurred 30,471 $ 16,416    
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Subscription business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net 972      
Short-duration Insurance Contracts, Accident Year 2018 [Member] | Other business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net 45      
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Subscription business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net 2,832      
Short-duration Insurance Contracts, Accident Year 2019 [Member] | Other business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net 239      
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Subscription business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net 13,636      
Short-duration Insurance Contracts, Accident Year 2020 [Member] | Other business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net $ 6,656      
v3.20.2
Stock-based Compensation (Details) Expense Category - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost $ 2,294 $ 1,922 $ 4,000 $ 3,339
Share-based Compensation Arrangement by Share-based Payment Award, Capitalized Cost 67 49 120 109
Claims expense        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 245 185 423 346
Other Cost of Revenue        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 99 93 189 179
Technology and development        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 133 110 233 173
General and administrative        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 1,075 918 1,804 1,536
Sales and marketing        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 675 567 1,231 996
Total Expense [Member]        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 2,227 $ 1,873 $ 3,880 $ 3,230
Restricted Stock Units (RSUs) [Member]        
Stock-based Compensation        
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period     3 years 1 month 6 days  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 21,800   $ 21,800  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 812,143   812,143  
Employee Stock Option [Member]        
Stock-based Compensation        
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period     9 months 18 days  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 700   $ 700  
Employee share-based compensation arrangement by share-based payment award, options, nonvested, number of shares 101,341   101,341  
v3.20.2
Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]    
Stock-based compensation, options, outstanding, number of shares 1,930,351 2,097,978
Stock-based compensation, options, granted, number of options 0  
Stock-based compensation, options, exercised (156,295)  
Stock-based compensation, options, forfeited (11,332)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number 1,829,010  
Stock-based compensation, options, outstanding, weighted-average exercise price $ 9.69 $ 9.86
Stock-based compensation, options, granted, weighted-average exercise price 0  
Stock-based compensation, options, exercised, weighted-average exercise price 11.43  
Stock-based compensation, options, forfeited, weighted-average exercise price 17.59  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price $ 9.23  
Stock-based compensation, options, outstanding, aggregate intrinsic value $ 63,709 $ 57,907
Stock-based compensation, options, exercised, aggregate intrinsic value 3,531  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value $ 61,194  
Remaining contractual life, share-based payments, weighted average 4 years 6 months  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term 4 years 4 months 24 days  
v3.20.2
Stock-based Compensation Restricted Stock Awards (Details) - Restricted Stock [Member] - $ / shares
6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 812,143 581,943
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 439,690  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (49,321)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (160,169)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Weighted Average Grant Date Fair Value [Roll Forward]    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value $ 28.44 $ 29.56
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value 27.34  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value 29.81  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value $ 29.08  
v3.20.2
Leases (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2020
Leases [Abstract]    
Proceeds from Rents Received $ 500,000 $ 1,100,000
v3.20.2
Stockholders' Equity (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Stockholders' Equity Attributable to Parent [Abstract]    
Common Stock, Shares Authorized 100,000,000 100,000,000
Common Stock, Shares, Outstanding 35,246,292 34,947,017
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Stock Repurchase Program, Authorized Amount $ 15.0  
Stock Repurchased During Period, Shares 3,300  
v3.20.2
Segments (Details) Business Segment - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Segment Reporting Information [Line Items]        
Revenue $ 117,920 $ 92,199 $ 229,221 $ 179,177
Veterinary invoice expense 82,049 65,933 161,689 127,215
Other Cost of Services Sold 16,004 11,553 29,813 22,217
Gross profit 19,867 14,713 37,719 29,745
Operating Expenses 18,331 16,554 37,134 32,869
Technology and Development Expense 2,989 2,578 5,834 5,247
General and administrative 6,100 5,219 11,616 10,638
Sales and marketing 9,242 8,757 19,684 16,984
Income (Loss) from Equity Method Investments (27) (272) (86) (272)
Operating income (loss) 1,509 (2,113) 499 (3,396)
Subscription business        
Segment Reporting Information [Line Items]        
Revenue 92,453 77,736 181,937 151,958
Veterinary invoice expense 66,030 57,161 131,218 110,799
Other Cost of Services Sold 8,564 7,103 16,798 13,852
Gross profit 17,859 13,472 33,921 27,307
Technology and Development Expense 2,343 2,174 4,630 4,450
General and administrative 4,783 4,400 9,218 9,022
Sales and marketing 9,051 8,719 19,330 16,816
Operating income (loss) 1,682 (1,821) 743 (2,981)
Other business        
Segment Reporting Information [Line Items]        
Revenue 25,467 14,463 47,284 27,219
Veterinary invoice expense 16,019 8,772 30,471 16,416
Other Cost of Services Sold 7,440 4,450 13,015 8,365
Gross profit 2,008 1,241 3,798 2,438
Technology and Development Expense 646 404 1,204 797
General and administrative 1,317 819 2,398 1,616
Sales and marketing 191 38 354 168
Operating income (loss) $ (146) $ (20) $ (158) $ (143)
v3.20.2
Segments (Details) Revenue by Geography - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Segment Reporting Information [Line Items]        
Revenues $ 117,920 $ 92,199 $ 229,221 $ 179,177
CANADA        
Segment Reporting Information [Line Items]        
Revenues 18,864 16,269 37,641 32,090
UNITED STATES        
Segment Reporting Information [Line Items]        
Revenues $ 99,056 $ 75,930 $ 191,580 $ 147,087
v3.20.2
Related Parties (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Related Parties [Abstract]    
Equity Method Investments $ 300,000 $ 300,000
Equity Method Investment, Ownership Percentage 17.50% 17.50%
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party $ 600,000 $ 1,100,000