TRUPANION, INC., 10-Q filed on 10/30/2020
Quarterly Report
v3.20.2
Cover Page Document - shares
 9 Months Ended
Sep. 30, 2020
Oct. 23, 2020
Cover Page [Abstract]    
Entity Central Index Key 0001371285  
Entity Common Stock, Shares Outstanding   35,578,580
Entity Shell Company false  
Entity Filer Category Large Accelerated Filer  
Entity Interactive Data Current Yes  
Entity Current Reporting Status Yes  
Title of 12(b) Security Common stock, $0.00001 par value per share  
City Area Code (855)  
Entity Address, Address Line One 6100 4th Avenue S, Suite 200  
Entity Address, City or Town Seattle,  
Entity Incorporation, State or Country Code DE  
Document Period End Date Sep. 30, 2020  
Document Transition Report false  
Document Quarterly Report true  
Entity File Number 001-36537  
Entity Tax Identification Number 83-0480694  
Entity Address, State or Province WA  
Entity Address, Postal Zip Code 98108  
Local Phone Number 727 - 9079  
Trading Symbol TRUP  
Security Exchange Name NASDAQ  
Entity Small Business false  
Entity Emerging Growth Company false  
Current Fiscal Year End Date --12-31  
Document Type 10-Q  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Registrant Name TRUPANION, INC.  
v3.20.2
Consolidated Statement of Operations - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Statement [Abstract]        
Revenue $ 130,120,000 $ 99,276,000 $ 359,341,000 $ 278,453,000
Cost of Revenue [Abstract]        
Veterinary invoice expense 91,266,000 69,086,000 252,955,000 196,301,000
Other Cost of Services Sold 18,265,000 12,745,000 48,078,000 34,962,000
Gross profit 20,589,000 17,445,000 58,308,000 47,190,000
Operating Expenses [Abstract]        
Technology and Development Expense 3,383,000 2,271,000 9,217,000 7,518,000
General and Administrative Expense 6,121,000 5,017,000 17,737,000 15,655,000
Selling and Marketing Expense 13,344,000 9,255,000 33,028,000 26,239,000
Operating Expenses 22,848,000 16,543,000 59,982,000 49,412,000
Income (Loss) from Equity Method Investments 2,000 (59,000) (84,000) (331,000)
Operating (loss) income (2,257,000) 843,000 (1,758,000) (2,553,000)
Interest expense 324,000 340,000 1,044,000 974,000
Other income, net (49,000) (297,000) (533,000) (1,094,000)
Income (Loss) before income taxes (2,532,000) 800,000 (2,269,000) (2,433,000)
Income tax expense 26,000 18,000 69,000 12,000
Net (loss) income $ (2,558,000) $ 782,000 $ (2,338,000) $ (2,445,000)
Earnings Per Share, Basic $ (0.07) $ 0.02 $ (0.07) $ (0.07)
Earnings Per Share, Diluted $ (0.07) $ 0.02 $ (0.07) $ (0.07)
Weighted Average Number of Shares Outstanding, Basic 35,426,742 34,876,782 35,193,317 34,593,345
Weighted Average Number of Shares Outstanding, Diluted 35,426,742 36,399,136 35,193,317 34,593,345
v3.20.2
Consolidated Statement of Comprehensive Income Statement - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (2,558,000) $ 782,000 $ (2,338,000) $ (2,445,000)
Foreign currency translation adjustments 199,000 (99,000) (141,000) 228,000
Net unrealized gain on available-for-sale debt securities 0 0 1,000 19,000
Other comprehensive income (loss), net of taxes 199,000 (99,000) (140,000) 247,000
Comprehensive Income (Loss) $ (2,359,000) $ 683,000 $ (2,478,000) $ (2,198,000)
v3.20.2
Consolidated Balance Sheet - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Assets [Abstract]    
Cash and cash equivalents $ 35,230 $ 29,168
Short-term Investments 83,072 69,732
Accounts and other receivables 92,409 54,408
Prepaid expenses and other assets 7,344 5,513
Total current assets 218,055 158,821
Restricted Cash 1,400 1,400
Long-Term Investments, at fair value 5,038 4,323
Property and equipment, net 71,114 70,372
Intangible assets, net 6,944 7,731
Other Long-Term Assets 14,591 14,553
Total assets 317,142 257,200
Liabilities and Equity [Abstract]    
Accounts payable 4,999 4,087
Accrued liabilities and other current liabilities 19,057 13,798
Reserve for veterinary invoices 28,839 21,194
Deferred Revenue 86,954 52,546
Total current liabilities 139,849 91,625
Long-term debt 29,839 26,086
Deferred Income Tax Liabilities, Net 1,118 1,118
Other liabilities 2,038 1,611
Total liabilities 172,844 120,440
Common stock 0 0
Preferred Stock 0 0
Additional paid-in capital 242,825 232,731
Accumulated other comprehensive loss 110 250
Accumulated deficit (87,858) (85,520)
Treasury stock, at cost (10,779) (10,701)
Stockholders' Equity Attributable to Parent 144,298 136,760
Total liabilities and stockholders' equity $ 317,142 $ 257,200
v3.20.2
Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - $ / shares
Sep. 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 36,511,705 35,876,882
Common Stock, Shares, Outstanding 35,578,540 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   604,566        
Common Stock, Shares, Outstanding Period End at Sep. 30, 2019   34,935,822        
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 339,000   339,000      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 5,232,000   5,232,000      
Other Comprehensive Income (Loss), Net of Tax 247,000       247,000  
Net Income (Loss) Available to Common Stockholders, Basic (2,445,000)     (2,445,000)    
Stockholders' Equity Attributable to Parent Period End at Sep. 30, 2019 132,846,000 $ 0 230,209,000 (86,156,000) (506,000) (10,701,000)
Common Stock, Shares, Outstanding Period Start at Jun. 30, 2019   34,782,324        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Redemption of warrants   0        
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings   153,498        
Common Stock, Shares, Outstanding Period End at Sep. 30, 2019   34,935,822        
Stockholders' Equity Attributable to Parent Period Beginning at Jun. 30, 2019 131,023,000 $ 0 229,069,000 (86,938,000) (407,000) (10,701,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Settlement of warrant liabilities 0   0     0
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings (753,000)   (753,000)      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 1,893,000   1,893,000      
Other Comprehensive Income (Loss), Net of Tax (99,000)       (99,000)  
Net Income (Loss) Available to Common Stockholders, Basic 782,000     782,000    
Stockholders' Equity Attributable to Parent Period End at Sep. 30, 2019 $ 132,846,000 $ 0 230,209,000 (86,156,000) (506,000) (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   634,823        
Common Stock, Shares, Outstanding Period End at Sep. 30, 2020 35,578,540 35,578,540        
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 3,606,000   3,606,000      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition $ 6,488,000   6,488,000      
Stock Repurchased During Period, Shares (3,300)          
Other Comprehensive Income (Loss), Net of Tax $ (140,000)       (140,000)  
Net Income (Loss) Available to Common Stockholders, Basic (2,338,000)     (2,338,000)    
Stockholders' Equity Attributable to Parent Period End at Sep. 30, 2020 144,298,000 $ 0 242,825,000 (87,858,000) 110,000 (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 Jun. 30, 2020   35,246,292        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock Issued During Period, Shares, Share-based Compensation, Net of Tax Withholdings   332,248        
Common Stock, Shares, Outstanding Period End at Sep. 30, 2020 35,578,540 35,578,540        
Stockholders' Equity Attributable to Parent Period Beginning 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]            
Stock Issued During Period, Value, Share-based Compensation, Net of Tax Withholdings 2,260,000   2,260,000      
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition 2,488,000   2,488,000      
Other Comprehensive Income (Loss), Net of Tax 199,000       199,000  
Net Income (Loss) Available to Common Stockholders, Basic (2,558,000)     (2,558,000)    
Stockholders' Equity Attributable to Parent Period End at Sep. 30, 2020 $ 144,298,000 $ 0 $ 242,825,000 $ (87,858,000) $ 110,000 $ (10,779,000)
v3.20.2
Consolidated Statement of Cash Flows - USD ($)
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Statement of Cash Flows [Abstract]    
Net Income (Loss) Available to Common Stockholders, Basic $ (2,338,000) $ (2,445,000)
Net Loss (2,338,000) (2,445,000)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]    
Depreciation and Amortization 4,770,000 4,358,000
Stock-based compensation expense 6,310,000 5,075,000
Other, Net 118,000 143,000
Increase (Decrease) in Operating Assets [Abstract]    
Accounts and other receivables (38,068,000) (18,582,000)
Prepaid expenses and other assets (1,979,000) 275,000
Accounts Payable, Accrued Liabilities, and Other Liabilities 6,602,000 2,806,000
Claims Reserve 7,692,000 3,187,000
Deferred revenue 34,473,000 16,808,000
Net cash provided by operating activities 17,580,000 11,625,000
Net Cash Provided by Investing Activities [Abstract]    
Payments to Acquire Investments (43,972,000) (45,492,000)
Maturities of Investment Securities 29,817,000 28,224,000
Purchases of property and equipment (4,512,000) (3,586,000)
Payments for (Proceeds from) Other Investing Activities 88,000 (1,937,000)
Net cash used in investing activities (18,579,000) (22,791,000)
Net Cash Provided by Financing Activities [Abstract]    
Proceeds from exercise of stock options 4,296,000 2,255,000
Payments Related to Tax Withholding for Share-based Compensation (656,000) (1,610,000)
Proceeds from Debt, Net of Issuance Costs 6,213,000 9,167,000
Repayments of Long-term Debt (2,500,000) 0
Proceeds from (Payments for) Other Financing Activities (78,000) (438,000)
Net cash provided by financing activities 7,275,000 9,374,000
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net (214,000) 267,000
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect 6,062,000 (1,525,000)
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 36,630,000 26,427,000
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 $ 613,000 $ 214,000
v3.20.2
Nature of Operations and Summary of Significant Accounting Policies
 9 Months Ended
Sep. 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 nine months ended September 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
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
2020201920202019
Basic earnings per share:
Net (loss) income$(2,558)$782 $(2,338)$(2,445)
Shares used in computation:
Weighted average shares of common stock outstanding35,426,742 34,876,782 35,193,317 34,593,345 
Basic earnings per share$(0.07)$0.02 $(0.07)$(0.07)
Diluted earnings per share:
Net (loss) income$(2,558)$782 $(2,338)$(2,445)
Shares used in computation:
Weighted average shares of common stock outstanding35,426,742 34,876,782 35,193,317 34,593,345 
Stock options— 1,457,486 — — 
Restricted stock awards and units— 64,868 — — 
Weighted average shares of diluted common stock outstanding35,426,742 36,399,136 35,193,317 34,593,345 
Diluted earnings per share$(0.07)$0.02 $(0.07)$(0.07)

The following potentially dilutive equity securities were not included in the diluted earnings per share of common stock calculation because they would have had an antidilutive effect:
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Stock options1,647,052 2,000 1,647,052 2,199,213 
Restricted stock awards and restricted stock units765,825 43,114 765,825 605,568 
v3.20.2
Investment Securities (Notes)
 9 Months Ended
Sep. 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 September 30, 2020 and December 31, 2019 (in thousands):
Amortized
Cost		Gross
Unrealized
Holding
Gains		Gross
Unrealized
Holding
Losses		Fair
Value
As of September 30, 2020
Long-term investments:
Foreign deposits$4,037 $— $— $4,037 
Municipal bond1,000 1 — 1,001 
$5,037 $1 $— $5,038 
       Short-term investments:
              U.S. Treasury securities$6,476 $— $(1)$6,475 
              Certificates of deposit1,634 — — 1,634 
              U.S. government funds74,962 — — 74,962 
$83,072 $— $(1)$83,071 
 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 September 30, 2020
 Amortized
Cost		Fair
Value
Available-for-sale:
Due after one year through five years$5,037 $5,038 
$5,037 $5,038 

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)
 9 Months Ended
Sep. 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 September 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 $1.0 million of these services for both of the nine months ended September 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 September 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
 9 Months Ended
Sep. 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 September 30, 2020
 Fair ValueLevel 1Level 2Level 3
Assets
Restricted cash$1,400 $1,400 $— $— 
Money market funds1,053 1,053 — — 
Fixed maturities:
Foreign deposits4,037 4,037 — — 
Municipal bond1,001 — 1,001 — 
Investment in variable interest entity7,625 — — 7,625 
Total$15,116 $6,490 $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 September 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 $5.9 million as of September 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 nine months ended September 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 September 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 nine months ended September 30, 2020 and the year ended December 31, 2019.
v3.20.2
Debt
 9 Months Ended
Sep. 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 September 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 September 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 September 30, 2020, available borrowing capacity on the line of credit was $19.9 million, with an outstanding balance of $0.2 million for ancillary services and letters of credit, and borrowings under the facility of $30.0 million, recorded net of financing fees of $0.1 million.
v3.20.2
Commitment and Contingencies
 9 Months Ended
Sep. 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
 9 Months Ended
Sep. 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):
 Nine Months Ended September 30,
Subscription20202019
Reserve at beginning of year$15,541 $13,875 
Veterinary invoices during the period related to:
Current year202,734 169,234 
Prior years356 560 
Total veterinary invoice expense203,090 169,794 
Amounts paid during the period related to:
Current year185,828 155,129 
Prior years12,849 11,985 
Total paid198,677 167,114 
Non-cash expenses903 514 
Reserve at end of period$19,051 $16,041 

The Company's reserve for the subscription business segment increased from $15.5 million at December 31, 2019 to $19.1 million at September 30, 2020. This change was comprised of $203.1 million in expense recorded during the period less $198.7 million in payments of veterinary invoices. The $203.1 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 nine months ended September 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):
 Nine Months Ended September 30,
Other Business20202019
Reserve at beginning of year$5,653 $2,187 
Veterinary invoices during the period related to:
Current year50,062 26,821 
Prior years(197)(314)
Total veterinary invoice expense49,865 26,507 
Amounts paid during the period related to:
Current year40,406 23,671 
Prior years5,324 1,765 
Total paid45,730 25,436 
Non-cash expenses— — 
Reserve at end of period$9,788 $3,258 
The Company’s reserve for the other business segment increased from $5.7 million at December 31, 2019 to $9.8 million at September 30, 2020. This change was comprised of $49.9 million in expense recorded during the period less $45.7 million in payments of veterinary invoices. The $49.9 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 nine months ended September 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 September 30, 2020
Year of Occurrence
2018 and prior$769 
20192,280 
202016,002 
$19,051 

Other Business As of September 30, 2020
Year of Occurrence
2018 and prior$45 
201988 
20209,655 
$9,788 
v3.20.2
Stock-based Compensation
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
 2020201920202019
Veterinary invoice expense$337 $169 $760 $515 
Other cost of revenue111 89 300 268 
Technology and development133 94 366 267 
General and administrative1,108 916 2,912 2,452 
Sales and marketing741 577 1,972 1,573 
Total stock-based compensation expense2,430 1,845 6,310 5,075 
Capitalized stock-based compensation58 48 178 157 
Total stock-based compensation$2,488 $1,893 $6,488 $5,232 

As of September 30, 2020, the Company had 66,956 unvested stock options and 765,825 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expenses of $0.4 million related to unvested stock options and $20.2 million related to unvested restricted stock awards and restricted stock units are expected to be recognized over a weighted average period of approximately 0.6 years and 2.9 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(438,981)9.71 20,132 
Forfeited(11,945)17.40 — 
Outstanding as of September 30, 20201,647,052 9.84 113,740 
Exercisable as of September 30, 20201,580,096 9.49 109,670 

As of September 30, 2020, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.3 years and 4.2 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 
Granted457,553 28.53 
Vested(213,495)29.41 
Forfeited(60,176)30.43 
Unvested shares as of September 30, 2020765,825 28.91 
v3.20.2
Leases (Notes)
 9 Months Ended
Sep. 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 $0.4 million and $1.5 million for the three and nine months ended September 30, 2020.
v3.20.2
Stockholders' Equity (Notes)
 9 Months Ended
Sep. 30, 2020
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity Note Disclosure [Text Block] Stockholders' Equity
Common Stock and Preferred Stock
As of September 30, 2020, the Company had 100,000,000 shares of common stock authorized and 35,578,540 shares of common stock outstanding. Holders of common stock are entitled to one vote on each matter properly submitted to the stockholders of the Company except those related to matters concerning possible outstanding preferred stock. At September 30, 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 September 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 nine months ended September 30, 2020. The Company did not repurchase any shares during the three months ended September 30, 2020 or the year ended December 31, 2019.
v3.20.2
Segments
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
 2020201920202019
Subscription business:
Revenue$99,379 $82,613 $281,316 $234,571 
Veterinary invoice expense71,872 58,995 203,090 169,794 
Other cost of revenue9,226 7,775 26,024 21,627 
Gross profit18,281 15,843 52,202 43,150 
Technology and development2,584 1,890 7,214 6,342 
General and administrative4,675 4,175 13,893 13,199 
Sales and marketing13,079 9,161 32,409 25,977 
Subscription business operating income (loss)(2,057)617 (1,314)(2,368)
Other business:
Revenue30,741 16,663 78,025 43,882 
Veterinary invoice expense19,394 10,091 49,865 26,507 
Other cost of revenue9,039 4,970 22,054 13,335 
Gross profit2,308 1,602 6,106 4,040 
Technology and development799 381 2,003 1,176 
General and administrative1,446 842 3,844 2,456 
Sales and marketing265 94 619 262 
Other business operating income (loss)(202)285 (360)146 
Gain (loss) from investment in joint venture2 (59)(84)(331)
Total operating income (loss)$(2,257)$843 $(1,758)$(2,553)
The following table presents the Company’s revenue by geographic region of the member (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
United States$109,119 $81,890 $300,699 $228,977 
Canada21,001 17,386 58,642 49,476 
Total revenue$130,120 $99,276 $359,341 $278,453 
Substantially all of the Company’s long-lived assets were located in the United States as of September 30, 2020 and December 31, 2019.
v3.20.2
Related Parties (Notes)
 9 Months Ended
Sep. 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 $1.7 million of expenses for consulting services provided by the investee during the three and nine months ended September 30, 2020, respectively.
v3.20.2
Subsequent Events
Oct. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On October 26, 2020, the Company entered into a Strategic Alliance Agreement, Shareholder Agreement, and a Stock Purchase Agreement with Aflac Incorporated (“Aflac”). The Strategic Alliance Agreement sets forth the structure for a distribution alliance between the parties (the “Alliance”). This includes responsibilities of Aflac relating to brand, access and distribution, responsibilities of the Company relating to marketing, product development and middle and back office functions, the intended go-to-market approach, the economic assumptions, and the intending timing. The parties have agreed to negotiate in good faith and to act reasonably with each other in order to agree on such terms as are necessary to fully implement the Alliance. To drive long term alignment, Aflac committed to invest $200.0 million cash in exchange for 3,636,364 newly issued shares of the Company's common stock at a price of $55 per share, subject to a minimum holding period of three years. The initial investment of $60.0 million closed on October 26, 2020. The remaining $140.0 million is subject to regulatory approvals and is expected to close by the end of 2020.
On October 30, 2020, the Company completed an acquisition of an unaffiliated software company and also completed an asset acquisition for a total purchase price of approximately $48.2 million. The acquired technology in both transactions focuses on the pet space and, along with the acquired personnel, is intended to enable the Company to improve its back-end software to help facilitate growth opportunities, additional products and geographies, as well as enhance its mobile platform. The initial accounting of these acquisitions has not been completed at the time this Quarterly Report on Form 10-Q is issued.
v3.20.2
Nature of Operations and Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 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 nine months ended September 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 nine months ended September 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)
 9 Months Ended
Sep. 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 September 30, 2020 and December 31, 2019.
v3.20.2
Other Investments Investment in Joint Venture (Policies)
 9 Months Ended
Sep. 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 September 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)
 9 Months Ended
Sep. 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 $5.9 million as of September 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 nine months ended September 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 September 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 nine months ended September 30, 2020 and the year ended December 31, 2019.
v3.20.2
Claims Reserve Claims Reserve (Policies)
 9 Months Ended
Sep. 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)
 9 Months Ended
Sep. 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)
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
2020201920202019
Basic earnings per share:
Net (loss) income$(2,558)$782 $(2,338)$(2,445)
Shares used in computation:
Weighted average shares of common stock outstanding35,426,742 34,876,782 35,193,317 34,593,345 
Basic earnings per share$(0.07)$0.02 $(0.07)$(0.07)
Diluted earnings per share:
Net (loss) income$(2,558)$782 $(2,338)$(2,445)
Shares used in computation:
Weighted average shares of common stock outstanding35,426,742 34,876,782 35,193,317 34,593,345 
Stock options— 1,457,486 — — 
Restricted stock awards and units— 64,868 — — 
Weighted average shares of diluted common stock outstanding35,426,742 36,399,136 35,193,317 34,593,345 
Diluted earnings per share$(0.07)$0.02 $(0.07)$(0.07)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following potentially dilutive equity securities were not included in the diluted earnings per share of common stock calculation because they would have had an antidilutive effect:
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Stock options1,647,052 2,000 1,647,052 2,199,213 
Restricted stock awards and restricted stock units765,825 43,114 765,825 605,568 
v3.20.2
Investment Securities Available-for-Sale (Tables)
 9 Months Ended
Sep. 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 September 30, 2020 and December 31, 2019 (in thousands):
Amortized
Cost		Gross
Unrealized
Holding
Gains		Gross
Unrealized
Holding
Losses		Fair
Value
As of September 30, 2020
Long-term investments:
Foreign deposits$4,037 $— $— $4,037 
Municipal bond1,000 1 — 1,001 
$5,037 $1 $— $5,038 
       Short-term investments:
              U.S. Treasury securities$6,476 $— $(1)$6,475 
              Certificates of deposit1,634 — — 1,634 
              U.S. government funds74,962 — — 74,962 
$83,072 $— $(1)$83,071 
 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 September 30, 2020
 Amortized
Cost		Fair
Value
Available-for-sale:
Due after one year through five years$5,037 $5,038 
$5,037 $5,038 
v3.20.2
Fair Value (Tables)
 9 Months Ended
Sep. 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 September 30, 2020
 Fair ValueLevel 1Level 2Level 3
Assets
Restricted cash$1,400 $1,400 $— $— 
Money market funds1,053 1,053 — — 
Fixed maturities:
Foreign deposits4,037 4,037 — — 
Municipal bond1,001 — 1,001 — 
Investment in variable interest entity7,625 — — 7,625 
Total$15,116 $6,490 $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)
 9 Months Ended
Sep. 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):
 Nine Months Ended September 30,
Subscription20202019
Reserve at beginning of year$15,541 $13,875 
Veterinary invoices during the period related to:
Current year202,734 169,234 
Prior years356 560 
Total veterinary invoice expense203,090 169,794 
Amounts paid during the period related to:
Current year185,828 155,129 
Prior years12,849 11,985 
Total paid198,677 167,114 
Non-cash expenses903 514 
Reserve at end of period$19,051 $16,041 

The Company's reserve for the subscription business segment increased from $15.5 million at December 31, 2019 to $19.1 million at September 30, 2020. This change was comprised of $203.1 million in expense recorded during the period less $198.7 million in payments of veterinary invoices. The $203.1 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 nine months ended September 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):
 Nine Months Ended September 30,
Other Business20202019
Reserve at beginning of year$5,653 $2,187 
Veterinary invoices during the period related to:
Current year50,062 26,821 
Prior years(197)(314)
Total veterinary invoice expense49,865 26,507 
Amounts paid during the period related to:
Current year40,406 23,671 
Prior years5,324 1,765 
Total paid45,730 25,436 
Non-cash expenses— — 
Reserve at end of period$9,788 $3,258 
The Company’s reserve for the other business segment increased from $5.7 million at December 31, 2019 to $9.8 million at September 30, 2020. This change was comprised of $49.9 million in expense recorded during the period less $45.7 million in payments of veterinary invoices. The $49.9 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 nine months ended September 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 September 30, 2020
Year of Occurrence
2018 and prior$769 
20192,280 
202016,002 
$19,051 

Other Business As of September 30, 2020
Year of Occurrence
2018 and prior$45 
201988 
20209,655 
$9,788 
v3.20.2
Stock-based Compensation (Tables)
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
 2020201920202019
Veterinary invoice expense$337 $169 $760 $515 
Other cost of revenue111 89 300 268 
Technology and development133 94 366 267 
General and administrative1,108 916 2,912 2,452 
Sales and marketing741 577 1,972 1,573 
Total stock-based compensation expense2,430 1,845 6,310 5,075 
Capitalized stock-based compensation58 48 178 157 
Total stock-based compensation$2,488 $1,893 $6,488 $5,232 
As of September 30, 2020, the Company had 66,956 unvested stock options and 765,825 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expenses of $0.4 million related to unvested stock options and $20.2 million related to unvested restricted stock awards and restricted stock units are expected to be recognized over a weighted average period of approximately 0.6 years and 2.9 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(438,981)9.71 20,132 
Forfeited(11,945)17.40 — 
Outstanding as of September 30, 20201,647,052 9.84 113,740 
Exercisable as of September 30, 20201,580,096 9.49 109,670 

As of September 30, 2020, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.3 years and 4.2 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 
Granted457,553 28.53 
Vested(213,495)29.41 
Forfeited(60,176)30.43 
Unvested shares as of September 30, 2020765,825 28.91 
v3.20.2
Segments (Tables)
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
 2020201920202019
Subscription business:
Revenue$99,379 $82,613 $281,316 $234,571 
Veterinary invoice expense71,872 58,995 203,090 169,794 
Other cost of revenue9,226 7,775 26,024 21,627 
Gross profit18,281 15,843 52,202 43,150 
Technology and development2,584 1,890 7,214 6,342 
General and administrative4,675 4,175 13,893 13,199 
Sales and marketing13,079 9,161 32,409 25,977 
Subscription business operating income (loss)(2,057)617 (1,314)(2,368)
Other business:
Revenue30,741 16,663 78,025 43,882 
Veterinary invoice expense19,394 10,091 49,865 26,507 
Other cost of revenue9,039 4,970 22,054 13,335 
Gross profit2,308 1,602 6,106 4,040 
Technology and development799 381 2,003 1,176 
General and administrative1,446 842 3,844 2,456 
Sales and marketing265 94 619 262 
Other business operating income (loss)(202)285 (360)146 
Gain (loss) from investment in joint venture2 (59)(84)(331)
Total operating income (loss)$(2,257)$843 $(1,758)$(2,553)
Revenue from External Customers by Geographic Areas [Table Text Block]
The following table presents the Company’s revenue by geographic region of the member (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
United States$109,119 $81,890 $300,699 $228,977 
Canada21,001 17,386 58,642 49,476 
Total revenue$130,120 $99,276 $359,341 $278,453 
v3.20.2
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Employee Stock Option [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 1,647,052 2,000 1,647,052 2,199,213
Restricted Stock Units (RSUs) [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 765,825 43,114 765,825 605,568
v3.20.2
Net Loss per Share Computation of Net Income (Loss) Per Share (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Net Income (Loss) Available to Common Stockholders, Basic $ (2,558,000) $ 782,000 $ (2,338,000) $ (2,445,000)
Weighted Average Number of Shares Outstanding, Basic 35,426,742 34,876,782 35,193,317 34,593,345
Earnings Per Share, Basic $ (0.07) $ 0.02 $ (0.07) $ (0.07)
Weighted Average Number of Shares Outstanding, Diluted 35,426,742 36,399,136 35,193,317 34,593,345
Earnings Per Share, Diluted $ (0.07) $ 0.02 $ (0.07) $ (0.07)
Employee Stock Option [Member]        
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Weighted Average Number of Shares Outstanding, Diluted 0   0  
Restricted Stock Units (RSUs) [Member]        
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Weighted Average Number of Shares Outstanding, Diluted 0   0  
v3.20.2
Investment Securities (Details) Investment Schedule - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Schedule of Investments [Line Items]    
Debt Securities, Held-to-maturity $ 83,072 $ 69,732
Debt Securities, Available-for-sale 5,037 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 5,038 4,323
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss 1 1
Debt Securities, Held-to-maturity, Fair Value 83,071 69,731
Deposits [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Available-for-sale 4,037 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 4,037 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 6,476 6,156
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain 0 0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss 1 1
Debt Securities, Held-to-maturity, Fair Value 6,475 6,155
Certificates of Deposit [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Held-to-maturity 1,634 440
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 1,634 440
US Government Debt Securities [Member]    
Schedule of Investments [Line Items]    
Debt Securities, Held-to-maturity 74,962 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 $ 74,962 $ 63,136
v3.20.2
Investment Securities (Details) Available-for-Sale - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Abstract]    
Available-for-sale securities, debt maturities, year two through five, amortized cost basis $ 5,037  
Available-for-sale securities, debt maturities, year two through five, fair value 5,038  
Available-for-sale securities, amortized cost 5,037  
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value $ 5,038 $ 4,323
v3.20.2
Other Investments (Details) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2020
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 $ 1.0 $ 1.0  
v3.20.2
Fair Value (Details) Unobservable - USD ($)
Sep. 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 5,038,000 4,323,000
Noncontrolling Interest in Variable Interest Entity 7,625,000 7,625,000
Assets, Fair Value Disclosure 15,116,000 14,398,000
Notes Receivable, Fair Value Disclosure 5,900,000 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 6,490,000 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 4,037,000 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 4,037,000 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 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Note Receivable, Fair Value [Abstract]            
Net unrealized gain on available-for-sale debt securities $ 0 $ 0 $ 1 $ 19    
Notes Receivable, Fair Value Disclosure 5,900   5,900   $ 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
 9 Months Ended
Sep. 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 19.9
Line of Credit Facility, Ancillary Services and Letter of Credit 0.2
Long-term Line of Credit 30.0
Line of Credit Financing Fee $ 0.1
v3.20.2
Claims Reserve (Details) Claims Loss Roll-forward - Other business - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]        
Claims Reserve $ 9,788 $ 3,258 $ 5,653 $ 2,187
Current Year Claims Incurred 50,062 26,821    
Prior Year Claims Incurred (197) (314)    
Total Claims Incurred 49,865 26,507    
Current Year Claims Paid 40,406 23,671    
Prior Years Claims Paid 5,324 1,765    
Total Claims Paid 45,730 25,436    
Claims expense non-cash 0 $ 0    
Claims Reserve by Loss Year        
Incurred but Not Reported (IBNR) Claims Liability 9,788      
Short-duration Insurance Contracts, Accident Year 2019 [Member]        
Claims Reserve by Loss Year        
Incurred but Not Reported (IBNR) Claims Liability 88      
Short-duration Insurance Contracts, Accident Year 2020 [Member]        
Claims Reserve by Loss Year        
Incurred but Not Reported (IBNR) Claims Liability $ 9,655      
v3.20.2
Claims Reserve (Details) Narrative - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
Subscription business        
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]        
Claims Reserve $ 19,051 $ 16,041 $ 15,541 $ 13,875
Total Claims Incurred 203,090 169,794    
Total Claims Paid 198,677 167,114    
Prior Year Claims Incurred 356 560    
Other business        
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]        
Claims Reserve 9,788 3,258 $ 5,653 $ 2,187
Total Claims Incurred 49,865 26,507    
Total Claims Paid 45,730 25,436    
Prior Year Claims Incurred $ (197) $ (314)    
v3.20.2
Claims Reserve Claims Reserve (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Sep. 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 $ 19,051      
Claims Reserve 19,051 $ 16,041 $ 15,541 $ 13,875
Current Year Claims Incurred 202,734 169,234    
Prior Year Claims Incurred 356 560    
Current Year Claims Paid 185,828 155,129    
Prior Years Claims Paid 12,849 11,985    
Total Claims Paid 198,677 167,114    
Claims expense non-cash 903 514    
Total Claims Incurred 203,090 169,794    
Other business        
Liability for Claims and Claims Adjustment Expense [Line Items]        
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net 9,788      
Claims Reserve 9,788 3,258 $ 5,653 $ 2,187
Current Year Claims Incurred 50,062 26,821    
Prior Year Claims Incurred (197) (314)    
Current Year Claims Paid 40,406 23,671    
Prior Years Claims Paid 5,324 1,765    
Total Claims Paid 45,730 25,436    
Claims expense non-cash 0 0    
Total Claims Incurred 49,865 $ 26,507    
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 769      
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 2,280      
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 88      
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 16,002      
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 $ 9,655      
v3.20.2
Stock-based Compensation (Details) Expense Category - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost $ 2,488 $ 1,893 $ 6,488 $ 5,232
Share-based Compensation Arrangement by Share-based Payment Award, Capitalized Cost 58 48 178 157
Claims expense        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 337 169 760 515
Other Cost of Revenue        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 111 89 300 268
Technology and development        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 133 94 366 267
General and administrative        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 1,108 916 2,912 2,452
Sales and marketing        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 741 577 1,972 1,573
Total Expense [Member]        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 2,430 $ 1,845 $ 6,310 $ 5,075
Restricted Stock Units (RSUs) [Member]        
Stock-based Compensation        
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period     2 years 10 months 24 days  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 20,200   $ 20,200  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 765,825   765,825  
Employee Stock Option [Member]        
Stock-based Compensation        
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period     7 months 6 days  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 400   $ 400  
Employee share-based compensation arrangement by share-based payment award, options, nonvested, number of shares 66,956   66,956  
v3.20.2
Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]    
Stock-based compensation, options, outstanding, number of shares 1,647,052 2,097,978
Stock-based compensation, options, granted, number of options 0  
Stock-based compensation, options, exercised (438,981)  
Stock-based compensation, options, forfeited (11,945)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number 1,580,096  
Stock-based compensation, options, outstanding, weighted-average exercise price $ 9.84 $ 9.86
Stock-based compensation, options, granted, weighted-average exercise price 0  
Stock-based compensation, options, exercised, weighted-average exercise price 9.71  
Stock-based compensation, options, forfeited, weighted-average exercise price 17.40  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price $ 9.49  
Stock-based compensation, options, outstanding, aggregate intrinsic value $ 113,740 $ 57,907
Stock-based compensation, options, exercised, aggregate intrinsic value 20,132  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value $ 109,670  
Remaining contractual life, share-based payments, weighted average 4 years 3 months 18 days  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term 4 years 2 months 12 days  
v3.20.2
Stock-based Compensation Restricted Stock Awards (Details) - Restricted Stock [Member] - $ / shares
 9 Months Ended
Sep. 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 765,825 581,943
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 457,553  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (60,176)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (213,495)  
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 $ 28.91 $ 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 28.53  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value 30.43  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value $ 29.41  
v3.20.2
Leases (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Leases [Abstract]    
Proceeds from Rents Received $ 400,000 $ 1,500,000
v3.20.2
Stockholders' Equity (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 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 35,578,540 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 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Segment Reporting Information [Line Items]        
Revenue $ 130,120 $ 99,276 $ 359,341 $ 278,453
Veterinary invoice expense 91,266 69,086 252,955 196,301
Other Cost of Services Sold 18,265 12,745 48,078 34,962
Gross profit 20,589 17,445 58,308 47,190
Operating Expenses 22,848 16,543 59,982 49,412
Technology and Development Expense 3,383 2,271 9,217 7,518
General and administrative 6,121 5,017 17,737 15,655
Sales and marketing 13,344 9,255 33,028 26,239
Income (Loss) from Equity Method Investments 2 (59) (84) (331)
Operating (loss) income (2,257) 843 (1,758) (2,553)
Subscription business        
Segment Reporting Information [Line Items]        
Revenue 99,379 82,613 281,316 234,571
Veterinary invoice expense 71,872 58,995 203,090 169,794
Other Cost of Services Sold 9,226 7,775 26,024 21,627
Gross profit 18,281 15,843 52,202 43,150
Technology and Development Expense 2,584 1,890 7,214 6,342
General and administrative 4,675 4,175 13,893 13,199
Sales and marketing 13,079 9,161 32,409 25,977
Operating (loss) income (2,057) 617 (1,314) (2,368)
Other business        
Segment Reporting Information [Line Items]        
Revenue 30,741 16,663 78,025 43,882
Veterinary invoice expense 19,394 10,091 49,865 26,507
Other Cost of Services Sold 9,039 4,970 22,054 13,335
Gross profit 2,308 1,602 6,106 4,040
Technology and Development Expense 799 381 2,003 1,176
General and administrative 1,446 842 3,844 2,456
Sales and marketing 265 94 619 262
Operating (loss) income $ (202) $ 285 $ (360) $ 146
v3.20.2
Segments (Details) Revenue by Geography - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Segment Reporting Information [Line Items]        
Revenues $ 130,120 $ 99,276 $ 359,341 $ 278,453
CANADA        
Segment Reporting Information [Line Items]        
Revenues 21,001 17,386 58,642 49,476
UNITED STATES        
Segment Reporting Information [Line Items]        
Revenues $ 109,119 $ 81,890 $ 300,699 $ 228,977
v3.20.2
Related Parties (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2020
USD ($)
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 $ 1,700,000
v3.20.2
Subsequent Events (Details) - USD ($)
Oct. 30, 2020
Oct. 30, 2020
Oct. 26, 2020
Subsequent Event [Line Items]      
Subsequent Events   Subsequent Events
On October 26, 2020, the Company entered into a Strategic Alliance Agreement, Shareholder Agreement, and a Stock Purchase Agreement with Aflac Incorporated (“Aflac”). The Strategic Alliance Agreement sets forth the structure for a distribution alliance between the parties (the “Alliance”). This includes responsibilities of Aflac relating to brand, access and distribution, responsibilities of the Company relating to marketing, product development and middle and back office functions, the intended go-to-market approach, the economic assumptions, and the intending timing. The parties have agreed to negotiate in good faith and to act reasonably with each other in order to agree on such terms as are necessary to fully implement the Alliance. To drive long term alignment, Aflac committed to invest $200.0 million cash in exchange for 3,636,364 newly issued shares of the Company's common stock at a price of $55 per share, subject to a minimum holding period of three years. The initial investment of $60.0 million closed on October 26, 2020. The remaining $140.0 million is subject to regulatory approvals and is expected to close by the end of 2020.
On October 30, 2020, the Company completed an acquisition of an unaffiliated software company and also completed an asset acquisition for a total purchase price of approximately $48.2 million. The acquired technology in both transactions focuses on the pet space and, along with the acquired personnel, is intended to enable the Company to improve its back-end software to help facilitate growth opportunities, additional products and geographies, as well as enhance its mobile platform. The initial accounting of these acquisitions has not been completed at the time this Quarterly Report on Form 10-Q is issued.
  
Subsequent Event [Member]      
Subsequent Event [Line Items]      
Proceeds from Issuance of Private Placement     $ 60,000,000.0
Payments to Acquire Businesses, Gross $ 48,200,000    
Committed Capital Remaining     $ 140,000,000.0
Stock Issued During Period, Shares, New Issues     3,636,364
Shares Issued, Price Per Share     $ 55
Total Committed Capital     $ 200,000,000.0