TRUPANION, INC., 10-Q filed on 8/3/2018
Quarterly Report
v3.10.0.1
Document and Entity Information Document - shares
6 Months Ended
Jun. 30, 2018
Jul. 25, 2018
Entity [Abstract]    
Entity Registrant Name TRUPANION, INC.  
Entity Central Index Key 0001371285  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Document Type 10-Q  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   32,776,401
v3.10.0.1
Consolidated Statement of Operations - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Statement [Abstract]        
Revenue $ 73,392 $ 58,275 $ 143,152 $ 113,004
Cost of Revenue [Abstract]        
Veterinary invoice expense 51,780 41,009 101,893 80,196
Other cost of revenue 9,259 6,915 17,842 13,302
Gross profit 12,353 10,351 23,417 19,506
Operating Expenses [Abstract]        
Technology and Development 2,298 2,322 4,462 4,725
General and administrative 4,610 4,245 9,068 8,257
Sales and marketing 5,702 4,372 11,640 8,461
Total operating expenses 12,610 10,939 25,170 21,443
Operating loss (257) (588) (1,753) (1,937)
Interest expense 332 109 551 246
Other (income) expense, net (303) (1,112) (443) (1,140)
Income (Loss) before income taxes (286) 415 (1,861) (1,043)
Income tax expense (benefit) 91 4 (4) 28
Net (loss) income $ (377) $ 411 $ (1,857) $ (1,071)
Net income (loss) per share [Abstract]        
Earnings Per Share, Basic and Diluted $ (0.01) $ 0.01 $ (0.06) $ (0.04)
Weighted Average Number of Shares Outstanding, Basic 30,721,037 29,510,907 30,485,121 29,383,502
Weighted Average Number of Shares Outstanding, Diluted 30,721,037 32,734,624 30,485,121 29,383,502
v3.10.0.1
Consolidated Statement of Comprehensive Income Statement - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (377) $ 411 $ (1,857) $ (1,071)
Foreign currency translation adjustments (129) 111 (319) 123
Net unrealized gain on available-for-sale debt securities 15 16 0 9
Other comprehensive (loss) income, net of taxes (114) 127 (319) 132
Comprehensive Income (Loss) $ (491) $ 538 $ (2,176) $ (939)
v3.10.0.1
Consolidated Balance Sheet - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Assets [Abstract]    
Cash and cash equivalents $ 95,424 $ 25,706
Short-term Investments 42,802 37,590
Accounts and other receivables 28,552 20,367
Prepaid expenses and other assets 6,890 2,895
Total current assets 173,668 86,558
Restricted Cash 1,400 600
Long-Term Investments, at fair value 3,311 3,237
Property and equipment, net 8,208 7,868
Intangible assets, net 5,158 4,972
Other Long-Term Assets 2,554 2,624
Total assets 194,299 105,859
Liabilities and Equity [Abstract]    
Accounts payable 2,373 2,716
Accrued liabilities and other current liabilities 10,424 7,660
Reserve for veterinary invoices 13,996 12,756
Deferred Revenue 30,339 22,734
Total current liabilities 57,132 45,866
Long-term debt 18,628 9,324
Deferred tax liabilities 1,002 1,002
Other liabilities 1,285 1,233
Total liabilities 78,047 57,425
Common stock 0 0
Preferred Stock 0 0
Additional paid-in capital 207,505 134,511
Accumulated other comprehensive loss (411) (92)
Accumulated deficit (84,641) (82,784)
Treasury stock, at cost (6,201) (3,201)
Stockholders' Equity Attributable to Parent 116,252 48,434
Total liabilities and stockholders' equity $ 194,299 $ 105,859
v3.10.0.1
Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Common Stock [Member]    
Common Stock, Par or Stated Value Per Share $ 0.00001 $ 0.00001
Common Stock, Shares Authorized 100,000,000 100,000,000
Common Stock, Shares, Issued 33,475,275 30,778,796
Common Stock, Shares, Outstanding 32,719,290 30,121,496
Preferred Stock [Member]    
Preferred Stock, Par or Stated Value Per Share $ 0.00001 $ 0.00001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Treasury Stock [Member]    
Treasury Stock, Shares 755,985 657,300
v3.10.0.1
Consolidated Statement of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Net Cash Provided by Operating Activities [Abstract]    
Net loss $ (1,857) $ (1,071)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]    
Depreciation and Amortization 1,891 2,113
Stock-based compensation expense 2,254 1,669
Gain (Loss) on Sale of Equity Investments 0 1,036
Other, Net 38 56
Increase (Decrease) in Operating Assets [Abstract]    
Accounts and other receivables (8,168) (6,968)
Prepaid expenses and other assets (4,068) (183)
Accounts Payable, Accrued Liabilities, and Other Liabilities 2,567 913
Claims Reserve 1,293 1,259
Deferred revenue 7,661 6,929
Net cash provided by operating activities 1,611 3,681
Payments to Acquire Investments 20,386 14,895
Net Cash Provided by Investing Activities [Abstract]    
Maturities of Investment Securities 15,015 11,712
Proceeds from Sale of Equity Method Investments 0 1,402
Purchases of property and equipment (2,370) (1,264)
Other Investments 113 (2,753)
Proceeds from Issuance or Sale of Equity 65,886 0
Net cash used in investing activities (7,628) (5,798)
Net Cash Provided by Financing Activities [Abstract]    
Proceeds from Issuance or Sale of Equity 65,886 0
Proceeds from exercise of stock options 1,656 1,647
Proceeds from Warrant Exercises 300 0
Proceeds from Debt financing, net of financing fees 9,250 1,459
Proceeds from (Payments for) Other Financing Activities (356) (203)
Net cash provided by financing activities 76,736 2,903
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net (201) 181
Net Increase in Cash, Cash Equivalents, and Restricted Cash 70,518 967
Cash, Cash Equivalents, and Restricted Cash at beginning of period 26,306 24,237
Cash, Cash Equivalents, and Restricted Cash, End of Period 96,824 25,204
Supplemental Cash Flow Information [Abstract]    
Purchases of property and equipment included in accounts payable and accrued liabilities 153 352
Property and Equipment Acquired Under Capital Leases 0 66
Redemption of Warrants Non-Cash; Common Stock $ 3,000 $ 0
v3.10.0.1
Nature of Operations and Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2018
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, 2017 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 (loss) income, 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, 2018 (the 2017 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2017 10-K. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period.
Follow-on Public Offering
In June 2018, the Company completed a follow-on public offering (the June 2018 follow-on public offering) whereby the Company sold 2,090,909 shares of common stock (inclusive of 272,727 shares of common stock sold by the Company pursuant to the full exercise of the underwriters' option to purchase additional shares) at a price to the public of $33.00 per share. The Company received aggregate net proceeds from the June 2018 follow-on public offering of $65.9 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2017 10-K for additional discussion of these estimates and assumptions.
Accumulated Other Comprehensive Loss
There were no reclassifications out of accumulated other comprehensive loss during the three and six months ended June 30, 2018 and 2017.
Income Taxes
On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act), making broad and complex changes to the Internal Revenue Code. The Company has made significant judgments and estimates in accordance with its interpretation of the Tax Act. As additional guidance on the Tax Act becomes available, the Company may adjust its interpretation of the requirements, which may result in a material change to income tax benefit or expense in the period in which the adjustment is made.
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the consolidated balance sheets. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company has determined this guidance will require recognition of a lease liability and corresponding asset on the consolidated balance sheets equal to the present value of minimum lease payments. The carrying amount of the asset is derived from the amount of the lease liability at the end of each reporting period. The Company plans to adopt this guidance as of January 1, 2019, and is in the process of evaluating the impact on its consolidated financial statements.
v3.10.0.1
Net Loss per Share
6 Months Ended
Jun. 30, 2018
Earnings Per Share, Basic and Diluted [Abstract]  
Earnings Per Share [Text Block] Net (Loss) Income per Share
Basic net (loss) income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net (loss) income per share is calculated using the weighted average number of shares of common stock plus, when dilutive, potential common shares outstanding using the treasury-stock method. Potential common shares outstanding include stock options, unvested restricted stock awards and restricted stock units, and warrants.
The components of basic and diluted earnings per share were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Basic earnings per share:
 
 
 
 
 
 
 
Net (loss) income
$
(377
)
 
$
411

 
$
(1,857
)
 
$
(1,071
)
Shares used in computation:
 
 
 
 
 
 
 
Weighted average common shares outstanding
30,721,037

 
29,510,907

 
30,485,121

 
29,383,502

Basic earnings per share
$
(0.01
)
 
$
0.01

 
$
(0.06
)
 
$
(0.04
)
 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Net (loss) income
$
(377
)
 
$
411

 
$
(1,857
)
 
$
(1,071
)
Shares used in computation:
 
 
 
 
 
 
 
Weighted average common shares outstanding
30,721,037

 
29,510,907

 
30,485,121

 
29,383,502

Stock options

 
2,511,012

 

 

Restricted stock awards and units

 
351,668

 

 

Warrants

 
361,037

 

 

Weighted average number of shares
30,721,037

 
32,734,624

 
30,485,121

 
29,383,502

Diluted earnings per share
$
(0.01
)
 
$
0.01

 
$
(0.06
)
 
$
(0.04
)

The following potentially dilutive equity securities were not included in the diluted earnings per common share calculation because they would have had an antidilutive effect:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Stock options
3,696,242

 
1,035,163

 
3,696,242

 
4,207,577

Restricted stock awards and restricted stock units
555,984

 

 
555,984

 
351,668

Warrants
480,000

 

 
480,000

 
810,000

v3.10.0.1
Investment Securities (Notes)
6 Months Ended
Jun. 30, 2018
Investments [Abstract]  
Investment [Text Block] Investment Securities
The amortized cost, gross unrealized holding gains and losses, fair value of long-term investments, which are classified as available-for-sale, and fair value of short-term investments by major security type and class of security were as follows as of June 30, 2018 and December 31, 2017 (in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Fair
Value
As of June 30, 2018
 
 
 
 
 
 
 
       Available-for-sale:
 
 
 
 
 
 
 
Foreign deposits
$
2,311

 
$

 
$

 
$
2,311

Municipal bond
1,000

 

 

 
1,000

 
$
3,311

 
$

 
$

 
$
3,311

       Short-term investments:
 
 
 
 
 
 
 
              U.S. Treasury securities
$
6,231

 
$

 
$
(2
)
 
$
6,229

              Certificates of deposit
439

 

 

 
439

              U.S. government funds
36,132

 

 

 
36,132

 
$
42,802


$

 
$
(2
)

$
42,800

 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Fair
Value
As of December 31, 2017
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Foreign deposits
$
2,237

 
$

 
$

 
$
2,237

Municipal bond
1,000

 

 

 
1,000

 
$
3,237


$

 
$


$
3,237

Short-term investments:
 
 
 
 
 
 
 
U.S. Treasury securities
$
5,783

 
$

 
$
(4
)
 
$
5,779

Certificates of deposit
690

 
1

 

 
691

U.S. government funds
31,117

 

 

 
31,117

 
$
37,590


$
1

 
$
(4
)

$
37,587


Maturities of debt securities classified as available-for-sale were as follows (in thousands):
 
June 30, 2018
 
Amortized
Cost
 
Fair
Value
Available-for-sale:
 
 
 
Due after one year through five years
$
2,311

 
$
2,311

Due after five years through ten years
1,000

 
1,000

 
$
3,311

 
$
3,311


The Company evaluated its securities for other-than-temporary impairment and considers the decline in market value for the securities to be primarily attributable to current economic and market conditions. For debt securities, the Company does not intend to sell, nor is it more likely than not that the Company will be required to sell, the securities prior to maturity or prior to the recovery of the amortized cost basis.
Investments [Text Block] The amortized cost, gross unrealized holding gains and losses, fair value of long-term investments, which are classified as available-for-sale, and fair value of short-term investments by major security type and class of security were as follows as of June 30, 2018 and December 31, 2017 (in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Fair
Value
As of June 30, 2018
 
 
 
 
 
 
 
       Available-for-sale:
 
 
 
 
 
 
 
Foreign deposits
$
2,311

 
$

 
$

 
$
2,311

Municipal bond
1,000

 

 

 
1,000

 
$
3,311

 
$

 
$

 
$
3,311

       Short-term investments:
 
 
 
 
 
 
 
              U.S. Treasury securities
$
6,231

 
$

 
$
(2
)
 
$
6,229

              Certificates of deposit
439

 

 

 
439

              U.S. government funds
36,132

 

 

 
36,132

 
$
42,802


$

 
$
(2
)

$
42,800

 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Fair
Value
As of December 31, 2017
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Foreign deposits
$
2,237

 
$

 
$

 
$
2,237

Municipal bond
1,000

 

 

 
1,000

 
$
3,237


$

 
$


$
3,237

Short-term investments:
 
 
 
 
 
 
 
U.S. Treasury securities
$
5,783

 
$

 
$
(4
)
 
$
5,779

Certificates of deposit
690

 
1

 

 
691

U.S. government funds
31,117

 

 

 
31,117

 
$
37,590


$
1

 
$
(4
)

$
37,587

v3.10.0.1
Fair Value
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block] Fair Value
Investments
The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands):
 
As of June 30, 2018
 
Fair Value
 
Level 1
 
Level 2
Assets
 
 
 
 
 
Restricted cash
$
1,400

 
$
1,400

 
$

Foreign deposits
2,311

 
2,311

 

Municipal bond
1,000

 

 
1,000

Money market funds
45,420

 
45,420

 

Total
$
50,131

 
$
49,131

 
$
1,000

 
 
 
 
 
 
 
As of December 31, 2017
 
Fair Value
 
Level 1
 
Level 2
Assets
 
 
 
 
 
Restricted cash
$
600

 
$
600

 
$

Foreign deposits
2,237

 
2,237

 

Municipal bond
1,000

 

 
1,000

Money market funds
5,167

 
5,167

 

Total
$
9,004

 
$
8,004

 
$
1,000


The Company measures the fair value of restricted cash, foreign deposits, and money market funds based on quoted prices in active markets for identical assets. The fair value of the municipal bond is based on either recent trades in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. Short-term investments are carried at amortized cost and the fair value is disclosed in Note 3, Investment Securities. 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.
Fair Value Disclosures
As of June 30, 2018 and December 31, 2017, the Company's other long-term assets balance included a $2.5 million note receivable, recorded at its estimated collectible amount. The Company estimates that the carrying value of the note receivable approximates its fair value. The estimated fair value represents a Level 3 measurement within the fair value hierarchy, and is based on market interest rates and the assessed creditworthiness of the third party.
The Company estimates the fair value of its long-term debt based upon rates currently available to the Company for debt with similar terms and remaining maturities. This is a Level 3 measurement. Based upon the terms of the debt, the carrying amount of long-term debt approximated fair value at June 30, 2018 and December 31, 2017.
v3.10.0.1
Debt
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block] Debt
On June 28, 2018, the Company amended its credit agreement, increasing its borrowing capacity from $30.0 million to $50.0 million, extending the maturity date to June 2021, and increasing the required amount of restricted cash. 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 1.25% plus the prime rate (6.25% at June 30, 2018). The credit agreement includes other ancillary services and letters of credit of up to $4.5 million, and requires a deposit of restricted cash of $1.4 million. As of June 30, 2018, 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 and the total amount of cash and securities held by the Company's insurance subsidiaries (American Pet Insurance Company and Wyndham Insurance Company (SAC) Limited Segregated Account AX). As of June 30, 2018, available borrowing capacity on the line of credit was $20.2 million, with an outstanding balance of $1.9 million for ancillary services and letters of credit, and borrowings under the facility of $18.8 million, recorded net of financing fees of $0.2 million.
v3.10.0.1
Commitment and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block] Commitments and Contingencies
Litigation
From time to time, the Company is subject to litigation matters and claims arising from the ordinary course of business. The Company records a provision for a liability relating to legal matters when it is both probable that a material liability has been incurred and the amount of the loss can be reasonably estimated. At this time, the Company does not believe any such matters to be material individually or in the aggregate. These views are subject to change following the outcome of future events or the results of future developments.
Agreement for the Purchase of Corporate Headquarters
In June 2018, the Company entered into a Real Estate Purchase and Sale Agreement (Real Estate Purchase Agreement) with Benaroya Capital Company, L.L.C to purchase certain properties (Properties) as defined within the Real Estate Purchase Agreement, located at 6100 Fourth Avenue South, Seattle, Washington. The purchase price will consist of $55.0 million in cash and 303,030 shares of common stock. The Company currently leases a portion of the Properties for use as its corporate headquarters and has recognized $1.0 million of rent expense under this lease for the six months ended June 30, 2018. Pursuant to this agreement, in June 2018, the Company made a $3.3 million earnest money deposit into an escrow account that, subject to limited exceptions, is non-refundable but creditable toward the purchase price of the Properties upon closing. Portions of the Properties are leased by unrelated parties, and the Company will assume those leases as part of its purchase. The closing date will be no later than January 1, 2019, and is subject to routine contingencies as provided in the Real Estate Purchase Agreement.
v3.10.0.1
Claims Reserve
6 Months Ended
Jun. 30, 2018
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]  
Supplementary Insurance Information, for Insurance Companies 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, including expected future trends in the number of veterinary invoices the Company will receive and the average cost of those veterinary invoices. The reserve is made for each of the Company's segments, subscription and other business, and are continually refined as the Company receives and pays veterinary invoices. Changes in management's assumptions and estimates may have a relatively large impact to the reserve and associated expense.
Reserve for veterinary invoices
Summarized below are the changes in the total liability for the Company's subscription business segment (in thousands):
 
 
Six Months Ended June 30,
Subscription
 
2018
 
2017
Reserve at beginning of year
 
$
11,059

 
$
8,538

Veterinary invoices during the period related to:
 
 
 
 
Current year
 
91,464

 
74,244

Prior years
 
119

 
(257
)
Total veterinary invoice expense
 
91,583

 
73,987

Amounts paid during the period related to:
 
 
 
 
Current year
 
80,841

 
65,549

Prior years
 
9,256

 
7,138

Total paid
 
90,097

 
72,687

Non-cash expenses
 
333

 
229

Reserve at end of period
 
$
12,212

 
$
9,609

The Company's reserve for the subscription business segment increased from $11.1 million at December 31, 2017 to $12.2 million at June 30, 2018. This change was comprised of $91.6 million in expense recorded during the period less $90.1 million in payments of veterinary invoices. The $91.6 million in veterinary invoice expense incurred includes an adjustment of $0.1 million to the reserves relating to prior years, which is the result of ongoing analysis of recent payment trends. For the six months ended June 30, 2017, the Company decreased prior year reserves by $0.3 million as a result of analysis of payment trends.
Summarized below are the changes in total liability for the Company's other business segment (in thousands):
 
 
Six Months Ended June 30,
Other Business
 
2018
 
2017
Reserve at beginning of year
 
$
1,697

 
$
983

Veterinary invoices during the period related to:
 
 
 
 
Current year
 
10,589

 
6,337

Prior years
 
(279
)
 
(128
)
Total veterinary invoice expense
 
10,310

 
6,209

Amounts paid during the period related to:
 
 
 
 
Current year
 
8,916

 
5,217

Prior years
 
1,307

 
764

Total paid
 
10,223

 
5,981

Non-cash expenses
 

 

Reserve at end of period
 
$
1,784

 
$
1,211


The Company’s reserve for the other business segment increased from $1.7 million at December 31, 2017 to $1.8 million at June 30, 2018. This change was comprised of $10.3 million in expense recorded during the period less $10.2 million in payments of veterinary invoices. The $10.3 million in veterinary invoice expense incurred includes a reduction of $0.3 million to the reserves relating to prior years, which is the result of ongoing analysis of recent payment trends. For the six months ended June 30, 2017, the Company decreased prior year reserves by $0.1 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 year the veterinary invoice relates to, referred to as the year of occurrence.
Subscription
As of June 30, 2018
Year of Occurrence
 
2016
$
386

2017
1,537

2018
10,289

 
$
12,212

Other Business
As of June 30, 2018
Year of Occurrence
 
2017
$
110

2018
1,674

 
$
1,784

v3.10.0.1
Stock-based Compensation
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] Stock-Based Compensation and Stockholders' Equity
Stock-based Compensation
Stock-based compensation expense includes stock options, restricted stock awards, and restricted stock units granted to employees and non-employees and has been reported in the Company’s consolidated statements of operations depending on the function performed by the employee or non-employee. Stock-based compensation expense recognized in the consolidated statements of operations was as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Veterinary invoice expense
$
148

 
$
89

 
$
268

 
$
159

Other cost of revenue
104

 
60

 
181

 
103

Technology and development
60

 
59

 
109

 
109

General and administrative
625

 
482

 
1,074

 
913

Sales and marketing
349

 
198

 
622

 
385

Total stock-based compensation
$
1,286

 
$
888

 
$
2,254

 
$
1,669


As of June 30, 2018, for all employees, the Company had 683,338 unvested stock options and 555,984 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expense of $4.3 million related to unvested stock options and $8.4 million related to unvested restricted stock awards and restricted stock units, each expected to be recognized over a weighted average period of approximately 2.3 years.
Stock Options
A summary of the Company's stock option activity is as follows:
 
Number Of Options
 
Weighted Average Exercise Price per Share
 
Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2017
4,006,399

 
$
7.16

 
$
88,578

Granted

 

 
 
Exercised
(262,967
)
 
6.30

 
6,681

Forfeited
(47,190
)
 
15.44

 
 
Outstanding as of June 30, 2018
3,696,242

 
$
7.12

 
$
116,370

 
 
 
 
 
 
Exercisable as of June 30, 2018
3,008,570

 
$
5.22

 
$
100,432

As of June 30, 2018, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.8 years and 4.1 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, 2017
256,842

 
$
4.77

Granted
323,358

 
27.87

Vested
(12,603
)
 
26.85

Forfeited
(11,613
)
 
28.36

Unvested shares as of June 30, 2018
555,984

 
$
18.27



Stockholders’ Equity
In the June 2018 follow-on public offering, the Company sold 2,090,909 shares of common stock (inclusive of 272,727 shares of common stock sold by the Company pursuant to the full exercise of the underwriters' option to purchase additional shares) at a price to the public of $33.00 per share. The Company received aggregate net proceeds of $65.9 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company.
During the six months ended June 30, 2018, 330,000 of the Company's outstanding warrants were exercised. As of June 30, 2018, warrants to purchase 480,000 shares of the Company's common stock at $10.00 per share remained outstanding. The warrants automatically convert to common stock in 2019.
v3.10.0.1
Segments
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] Segments
The Company has two segments: subscription business and other business. The subscription business segment includes monthly subscription fees related to the Company’s medical insurance which is marketed directly to consumers, while the other business segment includes all other business that is not directly marketed to consumers.
The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Additionally, other operating expenses, such as sales and marketing expenses, are allocated to each segment and evaluated when material. Interest and other expenses and income taxes are not allocated to the segments, nor included in the measure of segment profit or loss. The Company does not analyze discrete segment balance sheet information related to long-term assets.
Revenue and gross profit of the Company’s segments were as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
Subscription business
$
63,867

 
$
52,641

 
$
125,384

 
$
102,870

Other business
9,525

 
5,634

 
17,768

 
10,134

 
73,392

 
58,275

 
143,152

 
113,004

Veterinary invoice expense:
 
 
 
 
 
 
 
Subscription business
46,446

 
37,664

 
91,583

 
73,987

Other business
5,334

 
3,345

 
10,310

 
6,209

 
51,780

 
41,009

 
101,893

 
80,196

Other cost of revenue:
 
 
 
 
 
 
 
Subscription business
5,887

 
4,927

 
11,764

 
9,850

Other business
3,372

 
1,988

 
6,078

 
3,452

 
9,259

 
6,915

 
17,842

 
13,302

Gross profit:
 
 
 
 
 
 
 
Subscription business
11,534

 
10,050

 
22,037

 
19,033

Other business
819


301

 
1,380

 
473

 
12,353


10,351

 
23,417

 
19,506

 
 
 
 
 
 
 
 
Technology and development
2,298

 
2,322

 
4,462

 
4,725

General and administrative
4,610

 
4,245

 
9,068

 
8,257

Sales and marketing:
 
 
 
 
 
 
 
Subscription business
5,614

 
4,309

 
11,465

 
8,350

Other business
88

 
63

 
175

 
111

 
5,702

 
4,372

 
11,640

 
8,461

Operating loss
$
(257
)

$
(588
)
 
$
(1,753
)
 
$
(1,937
)

The following table presents the Company’s revenue by geographic region of the member (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
United States
$
59,431

 
$
47,306

 
$
115,440

 
$
91,440

Canada
13,961

 
10,969

 
27,712

 
21,564

Total revenue
$
73,392

 
$
58,275

 
$
143,152

 
$
113,004


Substantially all of the Company’s long-lived assets were located in the United States as of June 30, 2018 and December 31, 2017.
v3.10.0.1
Subsequent Events (Notes)
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events [Text Block] Subsequent EventsOn July 18, 2018, the Company purchased an equity interest, as a limited partner, in a privately held corporation for approximately $3.0 million. The Company has a contingent commitment to purchase an additional $4.0 million of equity for eighteen months following the initial investment. In conjunction with the investment, the Company has extended a revolving line of credit with a maximum borrowing capacity of $2.5 million.
v3.10.0.1
Nature of Operations and Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2018
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, 2017 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 (loss) income, 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, 2018 (the 2017 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2017 10-K. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year or any other interim period.
Follow-on Public Offering
In June 2018, the Company completed a follow-on public offering (the June 2018 follow-on public offering) whereby the Company sold 2,090,909 shares of common stock (inclusive of 272,727 shares of common stock sold by the Company pursuant to the full exercise of the underwriters' option to purchase additional shares) at a price to the public of $33.00 per share. The Company received aggregate net proceeds from the June 2018 follow-on public offering of $65.9 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company.
Basis of Accounting, Policy [Policy Text Block] The financial data as of December 31, 2017 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 (loss) income, 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, 2018 (the 2017 10-K). The Company's accounting policies are described in Note 1 to the audited financial statements included in the 2017 10-K. Operating results for the three and six months ended June 30, 2018 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 EstimatesThe preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from such estimates. See Note 1 to the audited financial statements included in the 2017 10-K for additional discussion of these estimates and assumptions.
Comprehensive Income, Policy [Policy Text Block] Accumulated Other Comprehensive LossThere were no reclassifications out of accumulated other comprehensive loss during the three and six months ended June 30, 2018 and 2017.
Income Tax, Policy [Policy Text Block] Income TaxesOn December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act), making broad and complex changes to the Internal Revenue Code. The Company has made significant judgments and estimates in accordance with its interpretation of the Tax Act. As additional guidance on the Tax Act becomes available, the Company may adjust its interpretation of the requirements, which may result in a material change to income tax benefit or expense in the period in which the adjustment is made.
New Accounting Pronouncements, Policy [Policy Text Block] Recent Accounting PronouncementsIn February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) amending the lease presentation guidance. The ASU requires organizations that lease assets to recognize the rights and obligations created by those leases on the consolidated balance sheets. This ASU is effective for fiscal years beginning after December 15, 2018 including interim periods within that reporting period, with early adoption permitted. The Company has determined this guidance will require recognition of a lease liability and corresponding asset on the consolidated balance sheets equal to the present value of minimum lease payments. The carrying amount of the asset is derived from the amount of the lease liability at the end of each reporting period. The Company plans to adopt this guidance as of January 1, 2019, and is in the process of evaluating the impact on its consolidated financial statements.
v3.10.0.1
Fair Value Notes Receivable (Policies)
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] As of June 30, 2018 and December 31, 2017, the Company's other long-term assets balance included a $2.5 million note receivable, recorded at its estimated collectible amount. The Company estimates that the carrying value of the note receivable approximates its fair value. The estimated fair value represents a Level 3 measurement within the fair value hierarchy, and is based on market interest rates and the assessed creditworthiness of the third party. The Company estimates the fair value of its long-term debt based upon rates currently available to the Company for debt with similar terms and remaining maturities. This is a Level 3 measurement. Based upon the terms of the debt, the carrying amount of long-term debt approximated fair value at June 30, 2018 and December 31, 2017.
v3.10.0.1
Fair Value Fair Value (Policies)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments, Policy [Policy Text Block] The Company measures the fair value of restricted cash, foreign deposits, and money market funds based on quoted prices in active markets for identical assets. The fair value of the municipal bond is based on either recent trades in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. Short-term investments are carried at amortized cost and the fair value is disclosed in Note 3, Investment Securities. 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.
v3.10.0.1
Claims Reserve Claims Reserve (Policies)
6 Months Ended
Jun. 30, 2018
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, including expected future trends in the number of veterinary invoices the Company will receive and the average cost of those veterinary invoices. The reserve is made for each of the Company's segments, subscription and other business, and are continually refined as the Company receives and pays veterinary invoices. Changes in management's assumptions and estimates may have a relatively large impact to the reserve and associated expense.
v3.10.0.1
Segments Segments (Policies)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting, Policy [Policy Text Block] The Company has two segments: subscription business and other business. The subscription business segment includes monthly subscription fees related to the Company’s medical insurance which is marketed directly to consumers, while the other business segment includes all other business that is not directly marketed to consumers. The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Additionally, other operating expenses, such as sales and marketing expenses, are allocated to each segment and evaluated when material. Interest and other expenses and income taxes are not allocated to the segments, nor included in the measure of segment profit or loss. The Company does not analyze discrete segment balance sheet information related to long-term assets.
v3.10.0.1
Net Loss per Share (Tables)
6 Months Ended
Jun. 30, 2018
Earnings Per Share, Basic and Diluted [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] The components of basic and diluted earnings per share were as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Basic earnings per share:
 
 
 
 
 
 
 
Net (loss) income
$
(377
)
 
$
411

 
$
(1,857
)
 
$
(1,071
)
Shares used in computation:
 
 
 
 
 
 
 
Weighted average common shares outstanding
30,721,037

 
29,510,907

 
30,485,121

 
29,383,502

Basic earnings per share
$
(0.01
)
 
$
0.01

 
$
(0.06
)
 
$
(0.04
)
 
 
 
 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
Net (loss) income
$
(377
)
 
$
411

 
$
(1,857
)
 
$
(1,071
)
Shares used in computation:
 
 
 
 
 
 
 
Weighted average common shares outstanding
30,721,037

 
29,510,907

 
30,485,121

 
29,383,502

Stock options

 
2,511,012

 

 

Restricted stock awards and units

 
351,668

 

 

Warrants

 
361,037

 

 

Weighted average number of shares
30,721,037

 
32,734,624

 
30,485,121

 
29,383,502

Diluted earnings per share
$
(0.01
)
 
$
0.01

 
$
(0.06
)
 
$
(0.04
)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] The following potentially dilutive equity securities were not included in the diluted earnings per common share calculation because they would have had an antidilutive effect:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Stock options
3,696,242

 
1,035,163

 
3,696,242

 
4,207,577

Restricted stock awards and restricted stock units
555,984

 

 
555,984

 
351,668

Warrants
480,000

 

 
480,000

 
810,000

v3.10.0.1
Investment Securities Available-for-Sale (Tables)
6 Months Ended
Jun. 30, 2018
Investments [Abstract]  
Investment [Table Text Block] The amortized cost, gross unrealized holding gains and losses, fair value of long-term investments, which are classified as available-for-sale, and fair value of short-term investments by major security type and class of security were as follows as of June 30, 2018 and December 31, 2017 (in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Fair
Value
As of June 30, 2018
 
 
 
 
 
 
 
       Available-for-sale:
 
 
 
 
 
 
 
Foreign deposits
$
2,311

 
$

 
$

 
$
2,311

Municipal bond
1,000

 

 

 
1,000

 
$
3,311

 
$

 
$

 
$
3,311

       Short-term investments:
 
 
 
 
 
 
 
              U.S. Treasury securities
$
6,231

 
$

 
$
(2
)
 
$
6,229

              Certificates of deposit
439

 

 

 
439

              U.S. government funds
36,132

 

 

 
36,132

 
$
42,802


$

 
$
(2
)

$
42,800

 
 
 
 
 
 
 
 
 
Amortized
Cost
 
Gross
Unrealized
Holding
Gains
 
Gross
Unrealized
Holding
Losses
 
Fair
Value
As of December 31, 2017
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Foreign deposits
$
2,237

 
$

 
$

 
$
2,237

Municipal bond
1,000

 

 

 
1,000

 
$
3,237


$

 
$


$
3,237

Short-term investments:
 
 
 
 
 
 
 
U.S. Treasury securities
$
5,783

 
$

 
$
(4
)
 
$
5,779

Certificates of deposit
690

 
1

 

 
691

U.S. government funds
31,117

 

 

 
31,117

 
$
37,590


$
1

 
$
(4
)

$
37,587

Available-for-sale Securities [Table Text Block] Maturities of debt securities classified as available-for-sale were as follows (in thousands):
 
June 30, 2018
 
Amortized
Cost
 
Fair
Value
Available-for-sale:
 
 
 
Due after one year through five years
$
2,311

 
$
2,311

Due after five years through ten years
1,000

 
1,000

 
$
3,311

 
$
3,311

v3.10.0.1
Fair Value (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair value, asset & liabilities measured on recurring basis [Table Text Block] The following table summarizes, by major security type, the Company's assets that are measured at fair value on a recurring basis, and placement within the fair value hierarchy (in thousands):
 
As of June 30, 2018
 
Fair Value
 
Level 1
 
Level 2
Assets
 
 
 
 
 
Restricted cash
$
1,400

 
$
1,400

 
$

Foreign deposits
2,311

 
2,311

 

Municipal bond
1,000

 

 
1,000

Money market funds
45,420

 
45,420

 

Total
$
50,131

 
$
49,131

 
$
1,000

 
 
 
 
 
 
 
As of December 31, 2017
 
Fair Value
 
Level 1
 
Level 2
Assets
 
 
 
 
 
Restricted cash
$
600

 
$
600

 
$

Foreign deposits
2,237

 
2,237

 

Municipal bond
1,000

 

 
1,000

Money market funds
5,167

 
5,167

 

Total
$
9,004

 
$
8,004

 
$
1,000


The Company measures the fair value of restricted cash, foreign deposits, and money market funds based on quoted prices in active markets for identical assets. The fair value of the municipal bond is based on either recent trades in inactive markets or quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. Short-term investments are carried at amortized cost and the fair value is disclosed in Note 3, Investment Securities. 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.
v3.10.0.1
Claims Reserve (Tables)
6 Months Ended
Jun. 30, 2018
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]  
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] Summarized below are the changes in the total liability for the Company's subscription business segment (in thousands):
 
 
Six Months Ended June 30,
Subscription
 
2018
 
2017
Reserve at beginning of year
 
$
11,059

 
$
8,538

Veterinary invoices during the period related to:
 
 
 
 
Current year
 
91,464

 
74,244

Prior years
 
119

 
(257
)
Total veterinary invoice expense
 
91,583

 
73,987

Amounts paid during the period related to:
 
 
 
 
Current year
 
80,841

 
65,549

Prior years
 
9,256

 
7,138

Total paid
 
90,097

 
72,687

Non-cash expenses
 
333

 
229

Reserve at end of period
 
$
12,212

 
$
9,609

The Company's reserve for the subscription business segment increased from $11.1 million at December 31, 2017 to $12.2 million at June 30, 2018. This change was comprised of $91.6 million in expense recorded during the period less $90.1 million in payments of veterinary invoices. The $91.6 million in veterinary invoice expense incurred includes an adjustment of $0.1 million to the reserves relating to prior years, which is the result of ongoing analysis of recent payment trends. For the six months ended June 30, 2017, the Company decreased prior year reserves by $0.3 million as a result of analysis of payment trends.
Summarized below are the changes in total liability for the Company's other business segment (in thousands):
 
 
Six Months Ended June 30,
Other Business
 
2018
 
2017
Reserve at beginning of year
 
$
1,697

 
$
983

Veterinary invoices during the period related to:
 
 
 
 
Current year
 
10,589

 
6,337

Prior years
 
(279
)
 
(128
)
Total veterinary invoice expense
 
10,310

 
6,209

Amounts paid during the period related to:
 
 
 
 
Current year
 
8,916

 
5,217

Prior years
 
1,307

 
764

Total paid
 
10,223

 
5,981

Non-cash expenses
 

 

Reserve at end of period
 
$
1,784

 
$
1,211


The Company’s reserve for the other business segment increased from $1.7 million at December 31, 2017 to $1.8 million at June 30, 2018. This change was comprised of $10.3 million in expense recorded during the period less $10.2 million in payments of veterinary invoices. The $10.3 million in veterinary invoice expense incurred includes a reduction of $0.3 million to the reserves relating to prior years, which is the result of ongoing analysis of recent payment trends. For the six months ended June 30, 2017, the Company decreased prior year reserves by $0.1 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 year the veterinary invoice relates to, referred to as the year of occurrence.
Subscription
As of June 30, 2018
Year of Occurrence
 
2016
$
386

2017
1,537

2018
10,289

 
$
12,212

Other Business
As of June 30, 2018
Year of Occurrence
 
2017
$
110

2018
1,674

 
$
1,784

v3.10.0.1
Stock-based Compensation (Tables)
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [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 non-employees and has been reported in the Company’s consolidated statements of operations depending on the function performed by the employee or non-employee. Stock-based compensation expense recognized in the consolidated statements of operations was as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Veterinary invoice expense
$
148

 
$
89

 
$
268

 
$
159

Other cost of revenue
104

 
60

 
181

 
103

Technology and development
60

 
59

 
109

 
109

General and administrative
625

 
482

 
1,074

 
913

Sales and marketing
349

 
198

 
622

 
385

Total stock-based compensation
$
1,286

 
$
888

 
$
2,254

 
$
1,669


As of June 30, 2018, for all employees, the Company had 683,338 unvested stock options and 555,984 unvested restricted stock awards and restricted stock units that are expected to vest. Stock-based compensation expense of $4.3 million related to unvested stock options and $8.4 million related to unvested restricted stock awards and restricted stock units, each expected to be recognized over a weighted average period of approximately 2.3 years
Share-based Compensation, Stock Options, Activity [Table Text Block] A summary of the Company's stock option activity is as follows:
 
Number Of Options
 
Weighted Average Exercise Price per Share
 
Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2017
4,006,399

 
$
7.16

 
$
88,578

Granted

 

 
 
Exercised
(262,967
)
 
6.30

 
6,681

Forfeited
(47,190
)
 
15.44

 
 
Outstanding as of June 30, 2018
3,696,242

 
$
7.12

 
$
116,370

 
 
 
 
 
 
Exercisable as of June 30, 2018
3,008,570

 
$
5.22

 
$
100,432

As of June 30, 2018, stock options outstanding and stock options exercisable had a weighted average remaining contractual life of 4.8 years and 4.1 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, 2017
256,842

 
$
4.77

Granted
323,358

 
27.87

Vested
(12,603
)
 
26.85

Forfeited
(11,613
)
 
28.36

Unvested shares as of June 30, 2018
555,984

 
$
18.27

v3.10.0.1
Stock-based Compensation Stockholder's Equity (Tables)
6 Months Ended
Jun. 30, 2018
Class of Warrant or Right [Line Items]  
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] During the six months ended June 30, 2018, 330,000 of the Company's outstanding warrants were exercised. As of June 30, 2018, warrants to purchase 480,000 shares of the Company's common stock at $10.00 per share remained outstanding. The warrants automatically convert to common stock in 2019.
v3.10.0.1
Stock-based Compensation Follow-on Public Offering (Tables)
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Follow-on Public Offering, June 2018 [Table Text Block] In the June 2018 follow-on public offering, the Company sold 2,090,909 shares of common stock (inclusive of 272,727 shares of common stock sold by the Company pursuant to the full exercise of the underwriters' option to purchase additional shares) at a price to the public of $33.00 per share. The Company received aggregate net proceeds of $65.9 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company.On July 18, 2018, the Company purchased an equity interest, as a limited partner, in a privately held corporation for approximately $3.0 million. The Company has a contingent commitment to purchase an additional $4.0 million of equity for eighteen months following the initial investment. In conjunction with the investment, the Company has extended a revolving line of credit with a maximum borrowing capacity of $2.5 million.
v3.10.0.1
Segments (Tables)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Revenue and Gross Profit from Segments [Table Text Block] Revenue and gross profit of the Company’s segments were as follows (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
Subscription business
$
63,867

 
$
52,641

 
$
125,384

 
$
102,870

Other business
9,525

 
5,634

 
17,768

 
10,134

 
73,392

 
58,275

 
143,152

 
113,004

Veterinary invoice expense:
 
 
 
 
 
 
 
Subscription business
46,446

 
37,664

 
91,583

 
73,987

Other business
5,334

 
3,345

 
10,310

 
6,209

 
51,780

 
41,009

 
101,893

 
80,196

Other cost of revenue:
 
 
 
 
 
 
 
Subscription business
5,887

 
4,927

 
11,764

 
9,850

Other business
3,372

 
1,988

 
6,078

 
3,452

 
9,259

 
6,915

 
17,842

 
13,302

Gross profit:
 
 
 
 
 
 
 
Subscription business
11,534

 
10,050

 
22,037

 
19,033

Other business
819


301

 
1,380

 
473

 
12,353


10,351

 
23,417

 
19,506

 
 
 
 
 
 
 
 
Technology and development
2,298

 
2,322

 
4,462

 
4,725

General and administrative
4,610

 
4,245

 
9,068

 
8,257

Sales and marketing:
 
 
 
 
 
 
 
Subscription business
5,614

 
4,309

 
11,465

 
8,350

Other business
88

 
63

 
175

 
111

 
5,702

 
4,372

 
11,640

 
8,461

Operating loss
$
(257
)

$
(588
)
 
$
(1,753
)
 
$
(1,937
)
Revenue from External Customers by Geographic Areas [Table Text Block] The following table presents the Company’s revenue by geographic region of the member (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
United States
$
59,431

 
$
47,306

 
$
115,440

 
$
91,440

Canada
13,961

 
10,969

 
27,712

 
21,564

Total revenue
$
73,392

 
$
58,275

 
$
143,152

 
$
113,004

v3.10.0.1
Subsequent Events (Tables)
6 Months Ended
Jun. 30, 2018
Subsequent Events [Abstract]  
Follow-on Public Offering, June 2018 [Table Text Block] In the June 2018 follow-on public offering, the Company sold 2,090,909 shares of common stock (inclusive of 272,727 shares of common stock sold by the Company pursuant to the full exercise of the underwriters' option to purchase additional shares) at a price to the public of $33.00 per share. The Company received aggregate net proceeds of $65.9 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company.On July 18, 2018, the Company purchased an equity interest, as a limited partner, in a privately held corporation for approximately $3.0 million. The Company has a contingent commitment to purchase an additional $4.0 million of equity for eighteen months following the initial investment. In conjunction with the investment, the Company has extended a revolving line of credit with a maximum borrowing capacity of $2.5 million.
Building Purchase [Table Text Block] n July 18, 2018, the Company purchased an equity interest, as a limited partner, in a privately held corporation for approximately $3.0 million. The Company has a contingent commitment to purchase an additional $4.0 million of equity for eighteen months following the initial investment. In conjunction with the investment, the Company has extended a revolving line of credit with a maximum borrowing capacity of $2.5 million.
v3.10.0.1
Nature of Operations and Summary of Significant Accounting Policies (Details) Narrative - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Organization and Basis of Presentation [Line Items]    
Common Stock, Shares, Issued 2,090,909  
Common Stock, Shares, Issued to Underwriter 272,727  
Shares Issued, Price Per Share $ 33.00  
Proceeds from Issuance or Sale of Equity $ 65,886 $ 0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax $ 0 $ 0
v3.10.0.1
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
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 3,696,242 1,035,163 3,696,242 4,207,577
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 555,984 0 555,984 351,668
Warrant [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 480,000 0 480,000 810,000
v3.10.0.1
Net Loss per Share Computation of Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Net Income (Loss) Available to Common Stockholders, Basic $ (377) $ 411 $ (1,857) $ (1,071)
Weighted Average Number of Shares Outstanding, Basic 30,721,037 29,510,907 30,485,121 29,383,502
Earnings Per Share, Basic $ (0.01) $ 0.01 $ (0.06) $ (0.04)
Weighted Average Number of Shares Outstanding, Diluted 30,721,037 32,734,624 30,485,121 29,383,502
Earnings Per Share, Diluted $ (0.01) $ 0.01 $ (0.06) $ (0.04)
Employee Stock Option [Member]        
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Weighted Average Number Diluted Shares Outstanding Adjustment 0 2,511,012 0 0
Restricted Stock Units (RSUs) [Member]        
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Weighted Average Number Diluted Shares Outstanding Adjustment 0 351,668 0 0
Warrant [Member]        
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Weighted Average Number Diluted Shares Outstanding Adjustment 0 361,037 0 0
v3.10.0.1
Investment Securities (Details) Investment Schedule - USD ($)
$ in Thousands
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Investment [Line Items]      
Available-for-sale securities, amortized cost $ 3,311    
Available-for-sale Securities, Gross Unrealized Gain 0   $ 0
Available-for-sale Securities, Gross Unrealized Loss 0   0
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis   $ 3,311 3,237
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 3,311 $ 3,311 3,237
Short-term investments, amortized cost 42,802   37,590
Short-term Investments, Gross Unrealized Holding Gains 0   1
Short-term investments, gross unrealized holding losses (2)   (4)
Short-term Investments, fair value 42,800   37,587
Deposits [Member]      
Investment [Line Items]      
Available-for-sale securities, amortized cost 2,311   2,237
Available-for-sale Securities, Gross Unrealized Gain 0   0
Available-for-sale Securities, Gross Unrealized Loss 0   0
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 2,311   2,237
Municipal Bonds [Member]      
Investment [Line Items]      
Available-for-sale securities, amortized cost 1,000   1,000
Available-for-sale Securities, Gross Unrealized Gain 0   0
Available-for-sale Securities, Gross Unrealized Loss 0   0
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 1,000   1,000
U.S. Treasury securities      
Investment [Line Items]      
Short-term investments, amortized cost 6,231   5,783
Short-term Investments, Gross Unrealized Holding Gains 0   0
Short-term investments, gross unrealized holding losses (2)   (4)
Short-term Investments, fair value 6,229   5,779
Certificates of deposit      
Investment [Line Items]      
Short-term investments, amortized cost 439   690
Short-term Investments, Gross Unrealized Holding Gains 0   1
Short-term investments, gross unrealized holding losses 0   0
Short-term Investments, fair value 439   691
US government debt securities      
Investment [Line Items]      
Short-term investments, amortized cost 36,132   31,117
Short-term Investments, Gross Unrealized Holding Gains 0   0
Short-term investments, gross unrealized holding losses 0   0
Short-term Investments, fair value $ 36,132   $ 31,117
v3.10.0.1
Investment Securities (Details) Available-for-Sale - USD ($)
$ in Thousands
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Available-for-sale Securities [Abstract]      
Available-for-sale securities, debt maturities, year two through five, amortized cost basis   $ 2,311  
Available-for-sale securities, debt maturities, year two through five, fair value   2,311  
Available-for-sale securities, debt maturities, year six through ten, amortized cost basis   1,000  
Available-for-sale securities, debt maturities, year six through ten, fair value   1,000  
Available-for-sale securities, amortized cost   3,311 $ 3,237
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value $ 3,311 $ 3,311 $ 3,237
v3.10.0.1
Fair Value (Details) Unobservable - USD ($)
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Restricted Cash $ 1,400,000   $ 600,000
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 3,311,000 $ 3,311,000 3,237,000
Assets, Fair Value Disclosure 50,131,000   9,004,000
Notes Receivable, Fair Value Disclosure 2,500,000   2,500,000
Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets, Fair Value Disclosure 49,131,000   8,004,000
Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Assets, Fair Value Disclosure 1,000,000   1,000,000
Cash and Cash Equivalents [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Restricted Cash 1,400,000   600,000
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   600,000
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
Deposits [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 2,311,000   2,237,000
Deposits [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 2,311,000   2,237,000
Deposits [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 0   0
Municipal bond      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value 1,000,000   1,000,000
Available-for-sale Securities, Debt Maturities, Single Maturity Date 1,000,000   1,000,000
Municipal bond | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale Securities, Debt Maturities, Single Maturity Date 0   0
Municipal bond | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Available-for-sale Securities, Debt Maturities, Single Maturity Date 1,000,000   1,000,000
Money Market Funds [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents, Fair Value Disclosure 45,420,000   5,167,000
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents, Fair Value Disclosure 45,420,000   5,167,000
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and Cash Equivalents, Fair Value Disclosure $ 0   $ 0
v3.10.0.1
Debt (Details) Narrative - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Mar. 31, 2018
Debt Disclosure [Abstract]    
Payments to Acquire Buildings $ 55.0  
Line of Credit Facility, Maximum Borrowing Capacity $ 50.0 $ 30.0
Line of credit facility, interest rate description greater of 4.5%, or 1.25% plus the prime rate  
Line of Credit Facility, Interest Rate During Period 6.25%  
Line of Credit Facility, Ancillary Services and Letter of Credit $ 4.5  
Restricted Cash and Cash Equivalents 1.4  
Line of Credit Facility, Remaining Borrowing Capacity 20.2  
Line of Credit Facility, Ancillary Services and Letter of Credit 1.9  
Long-term Line of Credit 18.8  
Line of Credit Financing Fee $ 0.2  
v3.10.0.1
Commitment and Contingencies Agreement for the Purchase of Corporate Headquarter (Details)
$ in Millions
6 Months Ended
Jun. 30, 2018
USD ($)
shares
Commitments and Contingencies Disclosure [Abstract]  
Payments to Acquire Buildings $ 55.0
Payments to Acquire Buildings, Shares | shares 303,030
Operating Leases, Rent Expense $ 1.0
Earnest Money Deposits $ 3.3
v3.10.0.1
Claims Reserve (Details) Claims Loss Roll-forward - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2017
Dec. 31, 2016
Subscription business          
Supplementary Insurance Information, by Segment [Line Items]          
Claims Reserve $ 12,212 $ 9,609   $ 11,059 $ 8,538
Current Year Claims Incurred 91,464 74,244      
Prior Year Claims Incurred 119 (257) $ (300)    
Total Claims Incurred 91,583 73,987      
Current Year Claims Paid 80,841 65,549      
Prior Years Claims Paid 9,256 7,138      
Total Claims Paid 90,097 72,687      
Claims expense non-cash 333 229      
Claims Reserve by Loss Year          
Incurred but Not Reported (IBNR) Claims Liability 12,212        
Other business          
Supplementary Insurance Information, by Segment [Line Items]          
Claims Reserve 1,784 1,211   $ 1,697 $ 983
Current Year Claims Incurred 10,589 6,337      
Prior Year Claims Incurred (279) (128)      
Total Claims Incurred 10,310 6,209      
Current Year Claims Paid 8,916 5,217      
Prior Years Claims Paid 1,307 764      
Total Claims Paid 10,223 5,981      
Claims expense non-cash 0 $ 0      
Claims Reserve by Loss Year          
Incurred but Not Reported (IBNR) Claims Liability 1,784        
Short-duration Insurance Contracts, Accident Year 2016 [Member] | Subscription business          
Claims Reserve by Loss Year          
Incurred but Not Reported (IBNR) Claims Liability 386        
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Subscription business          
Claims Reserve by Loss Year          
Incurred but Not Reported (IBNR) Claims Liability 1,537        
Short-duration Insurance Contracts, Accident Year 2017 [Member] | Other business          
Claims Reserve by Loss Year          
Incurred but Not Reported (IBNR) Claims Liability 110        
Shortduration insurance contracts for accident year 2018 [Member] | Subscription business          
Claims Reserve by Loss Year          
Incurred but Not Reported (IBNR) Claims Liability 10,289        
Shortduration insurance contracts for accident year 2018 [Member] | Other business          
Claims Reserve by Loss Year          
Incurred but Not Reported (IBNR) Claims Liability $ 1,674        
v3.10.0.1
Claims Reserve (Details) Narrative - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2017
Dec. 31, 2016
Subscription business          
Supplementary Insurance Information, by Segment [Line Items]          
Claims Reserve $ 12,212 $ 9,609   $ 11,059 $ 8,538
Total Claims Incurred 91,583 73,987      
Total Claims Paid 90,097 72,687      
Prior Year Claims Incurred 119 (257) $ (300)    
Other business          
Supplementary Insurance Information, by Segment [Line Items]          
Claims Reserve 1,784 1,211   $ 1,697 $ 983
Total Claims Incurred 10,310 6,209      
Total Claims Paid 10,223 5,981      
Prior Year Claims Incurred $ (279) $ (128)      
v3.10.0.1
Claims Reserve Claims Reserve (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2017
Dec. 31, 2016
Subscription business          
Liability for Claims and Claims Adjustment Expense [Line Items]          
Claims Reserve $ 12,212 $ 9,609   $ 11,059 $ 8,538
Current Year Claims Incurred 91,464 74,244      
Prior Year Claims Incurred 119 (257) $ (300)    
Current Year Claims Paid 80,841 65,549      
Prior Years Claims Paid 9,256 7,138      
Total Claims Paid 90,097 72,687      
Claims expense non-cash 333 229      
Total Claims Incurred 91,583 73,987      
Other business          
Liability for Claims and Claims Adjustment Expense [Line Items]          
Claims Reserve 1,784 1,211   $ 1,697 $ 983
Current Year Claims Incurred 10,589 6,337      
Prior Year Claims Incurred (279) (128)      
Current Year Claims Paid 8,916 5,217      
Prior Years Claims Paid 1,307 764      
Total Claims Paid 10,223 5,981      
Claims expense non-cash 0 0      
Total Claims Incurred $ 10,310 $ 6,209      
v3.10.0.1
Stock-based Compensation (Details) Expense Category - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost $ 1,286 $ 888 $ 2,254 $ 1,669
Claims expense        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 148 89 268 159
Other Cost of Revenue        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 104 60 181 103
Technology and development        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 60 59 109 109
General and administrative        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 625 482 1,074 913
Sales and marketing        
Stock-based Compensation        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost 349 $ 198 $ 622 $ 385
Restricted Stock Units (RSUs) [Member]        
Stock-based Compensation        
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period     2 years 3 months  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 8,400   $ 8,400  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number 555,984   555,984  
Employee Stock Option [Member]        
Stock-based Compensation        
Employee share-based compensation arrangement and non-employee, weighted average remaining vesting period     2 years 3 months 18 days  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized $ 4,300   $ 4,300  
Employee share-based compensation arrangement by share-based payment award, options, nonvested, number of shares 683,338   683,338  
v3.10.0.1
Stock-based Compensation (Details) Options Granted, Exercised and Forfeited - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Stock-based compensation, options, outstanding, number of shares 3,696,242 4,006,399
Stock-based compensation, options, granted, number of options 0  
Stock-based compensation, options, exercised (262,967)  
Stock-based compensation, options, forfeited (47,190)  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number 3,008,570  
Stock-based compensation, options, outstanding, weighted-average exercise price $ 7.12 $ 7.16
Stock-based compensation, options, granted, weighted-average exercise price 0  
Stock-based compensation, options, exercised, weighted-average exercise price 6.30  
Stock-based compensation, options, forfeited, weighted-average exercise price 15.44  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price $ 5.22  
Stock-based compensation, options, outstanding, aggregate intrinsic value $ 116,370 $ 88,578
Stock-based compensation, options, exercised, aggregate intrinsic value 6,681  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value $ 100,432  
Remaining contractual life, share-based payments, weighted average 4 years 9 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 1 month 6 days  
v3.10.0.1
Stock-based Compensation Restricted Stock Awards (Details) - Restricted Stock [Member] - $ / shares
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
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 555,984 256,842
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period 323,358  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (11,613)  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (12,603)  
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 $ 18.27 $ 4.77
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value 27.87  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value 28.36  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value $ 26.85  
v3.10.0.1
Stock-based Compensation Stockholder Equity (Details) - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Stockholders' Equity Attributable to Parent [Abstract]    
Stock Issued During Period, Shares, New Issues 2,090,909  
Redemption of warrants 330,000  
Class of Warrant or Right, Outstanding 480,000  
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 10.00  
Common Stock, Shares, Issued to Underwriter 272,727  
Shares Issued, Price Per Share $ 33.00  
Proceeds from Issuance or Sale of Equity $ 65,886 $ 0
v3.10.0.1
Segments (Details) Business Segment - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Revenue $ 73,392 $ 58,275 $ 143,152 $ 113,004
Veterinary invoice expense 51,780 41,009 101,893 80,196
Other cost of revenue 9,259 6,915 17,842 13,302
Gross profit 12,353 10,351 23,417 19,506
Sales and marketing 5,702 4,372 11,640 8,461
Technology and Development 2,298 2,322 4,462 4,725
General and administrative 4,610 4,245 9,068 8,257
Operating loss (257) (588) (1,753) (1,937)
Subscription business        
Segment Reporting Information [Line Items]        
Revenue 63,867 52,641 125,384 102,870
Veterinary invoice expense 46,446 37,664 91,583 73,987
Other cost of revenue 5,887 4,927 11,764 9,850
Gross profit 11,534 10,050 22,037 19,033
Sales and marketing 5,614 4,309 11,465 8,350
Other business        
Segment Reporting Information [Line Items]        
Revenue 9,525 5,634 17,768 10,134
Veterinary invoice expense 5,334 3,345 10,310 6,209
Other cost of revenue 3,372 1,988 6,078 3,452
Gross profit 819 301 1,380 473
Sales and marketing $ 88 $ 63 $ 175 $ 111
v3.10.0.1
Segments (Details) Revenue by Geography - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information [Line Items]        
Revenues $ 73,392 $ 58,275 $ 143,152 $ 113,004
CANADA        
Segment Reporting Information [Line Items]        
Revenues 13,961 10,969 27,712 21,564
UNITED STATES        
Segment Reporting Information [Line Items]        
Revenues $ 59,431 $ 47,306 $ 115,440 $ 91,440
v3.10.0.1
Subsequent Events (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2018
Jul. 18, 2018
Subsequent Event [Line Items]    
Investment Company, Committed Capital $ 4.0  
Increase (Decrease) in Notes Receivables 2.5  
Payments to Acquire Buildings $ 55.0  
Payments to Acquire Buildings, Shares 303,030  
Subsequent Event [Member]    
Subsequent Event [Line Items]    
Purchase of Equity Interest   $ 3.0