TRUPANION INC., 10-Q filed on 10/31/2014
Quarterly Report
Document and Entity Information Document
9 Months Ended
Sep. 30, 2014
Entity Information [Line Items]
 
Entity Registrant Name
TRUPANION INC. 
Entity Central Index Key
0001371285 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Non-accelerated Filer 
Document Type
10-Q 
Document Period End Date
Sep. 30, 2014 
Document Fiscal Year Focus
2014 
Document Fiscal Period Focus
Q3 
Amendment Flag
false 
Entity Common Stock, Shares Outstanding
27,789,803 
Condensed Consolidated Balance Sheet (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]
 
 
Cash and cash equivalents
$ 59,069 
$ 14,939 
Investments in fixed maturities, at amortized cost
19,297 
16,088 
Accounts and other receivables
8,598 
7,771 
Prepaid expenses and other assets
1,386 
935 
Total current assets
88,350 
39,733 
Restricted cash
3,000 
Investments in fixed maturities, at fair value
944 
832 
Property and equipment, net
6,355 
3,124 
Deferred offering costs
54 
Intangible assets, net
4,863 
4,910 
Total assets
100,512 
51,653 
Accounts payable
1,641 
1,263 
Accrued liabilities
3,519 
3,660 
Claims reserve
5,411 
5,612 
Deferred revenue
9,291 
8,468 
Short-term debt
900 
Warrant liabilities
4,900 
Other payables
1,340 
1,138 
Deferred tax liabilities
82 
82 
Total current liabilities
21,284 
26,023 
Long-term debt
14,900 
25,199 
Deferred tax liabilities
1,542 
1,540 
Other liabilities
141 
166 
Total liabilities
37,867 
52,928 
Redeemable convertible preferred stock: $0.00001 par value per share
31,724 
Common stock: $0.00001 par value per share
Preferred Stock, Value, Outstanding
Special voting shares: $0.00001 par value per share
Additional paid-in capital
118,153 
5,769 
Accumulated other comprehensive loss
(3)
(164)
Accumulated deficit
(52,904)
(36,003)
Treasury stock, at cost
2,601 
2,601 
Total stockholders' deficit
62,645 
(32,999)
Total liabilities, redeemable convertible preferred stock, and stockholders' deficit
$ 100,512 
$ 51,653 
Condensed Consolidated Balance Sheet Condensed Consolidated Balance Sheet Parentheticals (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Investment in fixed maturities, at amortized cost (fair value)
$ 19,297 
$ 16,088 
Investments in fixed maturities, at fair value (amortized cost)
$ 1,000 
$ 1,000 
Common Stock [Member]
 
 
Common Stock, Par or Stated Value Per Share
$ 0 
$ 0 
Common Stock, Shares Authorized
200,000,000 
26,000,000 
Common Stock, Shares, Issued
28,407,957 
2,857,620 
Common Stock, Shares, Outstanding
27,786,978 
2,236,641 
Convertible Preferred Stock [Member]
 
 
Preferred Stock, Par or Stated Value Per Share
$ 0 
$ 0 
Preferred Stock, Shares Authorized
15,648,723 
Preferred Stock, Shares Issued
14,857,989 
Preferred Stock, Shares Outstanding
14,857,989 
Preferred Stock [Member]
 
 
Preferred Stock, Par or Stated Value Per Share
$ 0 
$ 0 
Preferred Stock, Shares Authorized
10,000,000 
Preferred Stock, Shares Issued
Preferred Stock, Shares Outstanding
Treasury Stock [Member]
 
 
Treasury Stock, Shares
620,979 
620,979 
Special Voting Shares [Member]
 
 
Special Voting Shares, Par or Stated Value per Share
$ 0 
$ 0 
Special Voting Shares, Shares Authorized
2,500,030 
Special Voting Shares, Shares Issued
2,247,130 
Special Voting Shares, Shares Outstanding
2,247,130 
Condensed Consolidated Statement of Operations (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Income Statement [Abstract]
 
 
 
 
Revenue
$ 30,312 
$ 22,134 
$ 84,042 
$ 59,818 
Claims expenses
21,808 
14,810 
57,819 
40,320 
Other cost of revenue
4,059 
3,205 
11,872 
7,942 
Gross profit
4,445 
4,119 
14,351 
11,556 
Sales and marketing
2,934 
2,013 
8,390 
6,853 
Technology and development
2,532 
1,156 
7,285 
3,191 
General and administrative
4,385 
2,033 
10,463 
5,982 
Total operating expenses
9,851 
5,202 
26,138 
16,026 
Operating loss
(5,406)
(1,083)
(11,787)
(4,470)
Interest expense
5,155 
154 
6,623 
420 
Other (income) expense, net
(2,066)
(13)
(1,545)
168 
Loss before income taxes
(8,495)
(1,224)
(16,865)
(5,058)
Income tax expense (benefit)
14 
(2)
36 
(86)
Net loss
$ (8,509)
$ (1,222)
$ (16,901)
$ (4,972)
Net loss per share: Basic and diluted (per share)
$ (0.41)
$ (0.87)
$ (2.09)
$ (3.84)
Weighted average shares used to compute net loss per share: Basic and diluted (in shares)
20,857,126 
1,411,866 
8,092,287 
1,296,105 
Condensed Consolidated Statement of Comprehensive Income Statement (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net loss
$ (8,509)
$ (1,222)
$ (16,901)
$ (4,972)
Foreign currency translation adjustments
25 
(29)
49 
29 
Change in unrealized losses on available-for-sale securities
17 
(97)
112 
(131)
Other comprehensive income (loss), net of taxes
42 
(126)
161 
(102)
Comprehensive loss
$ (8,467)
$ (1,348)
$ (16,740)
$ (5,074)
Condensed Consolidated Statement of Cash Flows (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Statement of Cash Flows [Abstract]
 
 
Net loss
$ (16,901)
$ (4,972)
Depreciation and amortization
1,234 
663 
Amortization of prepaid loan fee
108 
Amortization of debt discount
4,925 
14 
Loss on disposal of equipment
48 
Warrant (income) expense
(1,574)
129 
Stock-based compensation expense
3,194 
1,364 
Loss from equity method investment
52 
Net amortization on bonds
12 
Accounts receivable
(828)
(5,460)
Prepaid expenses and other current assets
(456)
98 
Accounts payable
151 
128 
Accrued liabilities
(398)
(41)
Claims reserve
(201)
2,565 
Deferred revenue
823 
4,276 
Other payables
167 
106 
Net cash used in operating activities
(9,700)
(1,066)
Purchases of investment securities, held-to-maturity
(26,455)
(15,697)
Maturities of investment securities, held-to-maturity
23,239 
15,055 
Purchases of property and equipment
(4,013)
(1,416)
Other
(18)
Net cash used in investing activities
(7,229)
(2,076)
Restricted cash
3,000 
Proceeds from exercise of stock options
161 
434 
Proceeds from line of credit and debt financing
17,000 
3,700 
Payment of loan fee
(103)
Repayment of debt financing
(32,000)
Net proceeds from initial public offering
72,946 
Net cash provided by financing activities
61,004 
4,134 
Effect of foreign exchange rates on cash, net
55 
53 
Net change in cash and cash equivalents
44,130 
1,045 
Cash and cash equivalents at beginning of period
14,939 
4,234 
Cash and cash equivalents at end of period
59,069 
5,279 
Income taxes paid
Interest paid
1,372 
406 
Warrants issued in conjunction with debt issuance
1,123 
43 
Exchange of stock for equity method investment
448 
Increase in payables for property and equipment
488 
139 
Increase in payables for deferred financing costs
136 
Redemption of Warrants Non-Cash
$ 1,270 
$ 0 
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations and Summary of Significant Accounting Policies
Description of Business
Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) is a direct-to-consumer monthly subscription service provider of a medical plan for cats and dogs throughout the United States, Canada and Puerto Rico.
Basis of Presentation
The condensed consolidated balance sheet data as of December 31, 2013 was derived from audited consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes for the year ended December 31, 2013 included in the Company's prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933 on July 18, 2014. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Company's financial position and results of its operations, as of and for the periods presented. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014, or for any other period.
Reclassifications
Certain prior year amounts have been reclassified within the Company’s consolidated financial statements from their original presentation to conform with the current period presentation.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, warrant liabilities, claims reserve, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements.
Income Taxes
The Company is subject to income taxes in the United States and in Canada. The provision for income taxes reflects the Company's estimated effective tax rate for the year. The difference between this rate and the U.S. federal income tax rate of 35% was primarily due to a full valuation allowance on its U.S. deferred tax assets. During the nine months ended September 30, 2014, the Company reduced its accrual for its existing uncertain tax positions by $53.
Offering Costs
Prior to the Company's initial public offering (IPO), deferred offering costs, including legal, accounting and other fees and costs related to the IPO, were capitalized and included as a noncurrent asset in the consolidated balance sheets. Upon completion of the IPO, the deferred offering costs were offset against IPO proceeds in additional paid-in capital in the consolidated balance sheet.
Initial Public Offering
On July 23, 2014 the Company completed IPO pursuant to which 8,193,750 shares of common stock were sold to the public at a price of $10.00 per share. The Company received net proceeds of approximately $72.8 million from the IPO. Upon the closing of the IPO, all shares of the outstanding convertible preferred stock and exchangeable shares automatically converted into 14,944,945 and 2,247,130 shares of common stock, respectively. If this transaction had taken place on January 1, 2014, the Company's weighted-average shares outstanding for the three and nine months ended September 30, 2014 would have been 27,135,340 and 26,900,033, respectively.

Upon completion of the IPO, 25,170 warrants to purchase preferred stock were converted into warrants for the purchase of common shares on a 1:1 basis. These warrants were classified as liabilities on the consolidated balance sheet due to terms allowing for a modification of the exercise price under certain circumstances. Upon completion of the IPO, these warrants were revalued resulting in a gain of $14 that was recorded in other (income) expense, net in the consolidated statement of operations. Immediately after the IPO, all of these warrants were exercised at the IPO price of $10.00 per share, resulting in an increase of 25,170 shares of common stock outstanding.

Immediately prior to the Company's IPO, there were warrants to purchase 1,164,085 shares of common stock outstanding, of which warrants to purchase 415,646 of shares of common stock were issued on July 2, 2014 in connection with an amended and restated credit agreement that contained terms modifying the exercise price and number of underlying shares upon completion of an IPO resulting in historical liability classification in the consolidated balance sheet. Upon the closing of the IPO, the number of shares underlying these warrants was adjusted to 869,999 shares, and the exercise price of each warrant was adjusted to $10.00 per share. These warrants were also revalued resulting in a gain of $2,040, which was recorded in other (income) expense, net in the statement of operations. Immediatly following the IPO, these warrants were no longer subject to contractual modification provisions and were reclassified from a liability classification to an equity classification on the consolidated balance sheet.

Accumulated Other Comprehensive Loss, net of tax
A rollforward of accumulated other comprehensive loss is as follows:
 
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
UNREALIZED LOSSES ON AVAILABLE FOR SALE SECURITIES
 
FOREIGN CURRENCY GAIN
Balance at December 31, 2013
$
(168
)
 
$
4

Other comprehensive loss
35

 
51

Balance at March 31, 2014
(133
)
 
55

Other comprehensive loss
60

 
(27
)
Balance at June 30, 2014
(73
)
 
28

Other comprehensive loss
17

 
25

Balance at September 30, 2014
$
(56
)
 
$
53

There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2014 and 2013.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Insurance contracts are excluded from the scope of this new guidance. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited, and must be applied retrospectively or modified retrospectively. We are currently evaluating the impact this ASU will have on our consolidated financial statements.
Net Loss per Share
Earnings Per Share [Text Block]
Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. Excluded from the weighted-average number of shares outstanding are shares that have been issued and are subject to future vesting and unvested restricted stock. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common stock equivalents outstanding for the period determined using the treasury-stock method. Potentially dilutive common stock equivalents are comprised of convertible preferred stock, warrants for the purchase of convertible preferred stock and common stock, exchangeable shares, unvested restricted stock and stock options. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position.
The following potential dilutive equity securities are not included in the diluted net loss per common share calculation because they would have had an antidilutive effect:
 
AS OF SEPTEMBER 30,
 
2014
 
2013
Stock options
5,082,500

 
4,597,782

Restricted stock
595,665

 
730,149

Warrants
869,999

 
135,672

Series A convertible preferred stock

 
7,466,283

Series B convertible preferred stock

 
3,546,384

Series C convertible preferred stock

 
3,845,322

Exchangeable shares

 
2,247,130



Convertible preferred stock is presented on an as converted basis to reflect the applicable conversion ratio.
Investment Securities (Notes)
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
The amortized cost, gross unrealized holding gains and losses, and fair value of available-for-sale and held-to-maturity fixed maturity securities by major security type and class of security were as follows:

 
AMORTIZED
COST
 
GROSS
UNREALIZED
HOLDING
GAINS
 
GROSS
UNREALIZED
HOLDING
LOSSES
 
FAIR
VALUE
As of September 30, 2014
 
 
 
 
 
 
 
       Available-for-sale:
 
 
 
 
 
 
 
Municipal bond
$
1,000

 
$

 
$
(56
)
 
$
944

 
$
1,000

 
$

 
$
(56
)
 
$
944

       Held-to-maturity:
 
 
 
 
 
 
 
              U.S. Treasury securities
$
5,777

 
$

 
$

 
$
5,777

              Certificates of deposit
700

 

 

 
700

              U.S. government funds
12,820

 

 

 
12,820

 
$
19,297


$


$


$
19,297

 
 
 
 
 
 
 
 
 
AMORTIZED
COST
 
GROSS
UNREALIZED
HOLDING
GAINS
 
GROSS
UNREALIZED
HOLDING
LOSSES
 
FAIR
VALUE
As of December 31, 2013
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Municipal bond
$
1,000

 
$

 
$
(168
)
 
$
832

 
$
1,000


$


$
(168
)

$
832

Held-to-maturity:
 
 
 
 
 
 
 
U.S. Treasury securities
$
5,778

 
$

 
$

 
$
5,778

Certificates of deposit
2,700

 

 

 
$
2,700

U.S. government funds
7,610

 

 

 
$
7,610

 
$
16,088


$


$


$
16,088




Maturities of debt securities classified as available-for-sale were as follows:
 
SEPTEMBER 30, 2014
 
AMORTIZED
COST

FAIR
VALUE
Available-for-sale:



Due under one year
$


$

Due after one year through five years



Due after five years through ten years
1,000


944

Due after ten years




$
1,000


$
944




Maturities of debt securities classified held-to-maturity were as follows:

 
SEPTEMBER 30, 2014
 
AMORTIZED
COST
 
FAIR
VALUE
Held-to-maturity:
 
 
 
Due under one year
$
19,297


$
19,297

Due after one year through five years



Due after five years through ten years



Due after ten years




$
19,297


$
19,297



The Company had one investment with an unrealized loss of $56 and a fair value of $944 at September 30, 2014 and an unrealized loss of $168 and a fair value of $832 at December 31, 2013. The debt security has been in the unrealized loss position for more than 12 months. The Company has assessed the bond for credit impairment and has determined that there is no intent to sell this bond and it is likely that it will hold the investment for a period of time sufficient to allow for a recovery. Furthermore, future payments on this bond are insured by a financial guarantee insurer. Therefore, the Company believes that the unrealized loss on this bond constitutes a temporary impairment.
Fair Value
Fair Value Disclosures [Text Block]
. Fair Value
The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible.
When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
Level 2 inputs: Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.
The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis:
 
AS OF SEPTEMBER 30, 2014
 
FAIR VALUE
 
LEVEL 1
 
LEVEL 2
 
LEVEL 3
Assets
 
 
 
 
 
 
 
Municipal bond
944

 

 
944

 

Money market funds
$
50,500

 
$
50,500

 
$

 
$

Total
$
51,444

 
$
50,500

 
$
944

 
$

 
 
 
 
 
 
 
 
 
AS OF DECEMBER 31, 2013
 
FAIR VALUE
 
LEVEL 1
 
LEVEL 2
 
LEVEL 3
Assets
 
 
 
 
 
 
 
Restricted cash
$
3,000

 
$
3,000

 
$

 
$

Municipal bond
832

 

 
832

 

Total
$
3,832

 
$
3,000

 
$
832

 
$

Liabilities
 
 
 
 
 
 
 
Warrant liabilities
$
4,900

 
$

 
$

 
$
4,900

Total
$
4,900

 
$

 
$

 
$
4,900




A rollforward of activity in liabilities valued using Level 3 inputs is as follows:
 
WARRANT LIABILITIES
 
2014
 
2013
Balance at January 1,
$
4,900

 
$
551

Issuance of warrants

 
44

Change in fair value upon remeasurement
1,219

 
98

Balance at March 31,
6,119

 
693

Settlement of warrant liability upon exercise
(999
)
 

Change in fair value upon remeasurement
(740
)
 
28

Balance at June 30,
$
4,380

 
$
721

Issuance of warrants
1,123

 

Settlement of warrant liability upon exercise
(270
)
 

Change in fair value upon remeasurement
(2,053
)
 
3

Reclassification to stockholders' equity
(3,180
)
 

Balance at September 30,

 
724


 
Changes in fair value upon remeasurement are recorded in other (income) expense, net on the consolidated statement of operations.
The Company estimates fair value for 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 the $3,000 and $12,000 term loans approximated fair value at December 31, 2013.
The Company’s accounting policy is to recognize 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 three and nine months ended September 30, 2014.
The following methods and assumptions were used to estimate the fair value of each class of financial instruments:
Investment securities: Debt securities classified as available-for-sale are measured using quoted market prices when quoted market prices are available. If quoted market prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices of similar instruments and other significant inputs derived from observable market data obtained from third-party data providers. Held-to-maturity securities are carried at amortized cost and the fair value is disclosed in Note 3. Fair value is determined in the same manner as available-for-sale securities and is considered a Level 2 measurement.
Warrant liabilities: These liabilities are valued using the Black-Scholes-Merton option-pricing model using certain unobservable inputs that are estimated by the Company. These inputs include a measure of volatility using an average of peer companies’ publicly traded stock volatility, expected dividend payments based on management’s assertion that no dividends will be paid in the near term, the remaining contractual term and a discount rate using an average equivalent bond yield calculation. The range of inputs used is as follows:
 
THREE MONTHS ENDED
SEPTEMBER 30,
 
NINE MONTHS ENDED
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
Expected volatility
40%-41%
 
38%-40%
 
34%-46%
 
35%-46%
Expected dividends
—%
 
—%
 
—%
 
—%
Risk-free rate
1.69%-1.71%
 
1.01%-2.02%
 
0.03%-2.02%
 
0.10%-2.02%
Term
3.5-5.0 years
 
4.3-6.5 years
 
0.1-6.0 years
 
0.6-7.0 years


An increase or decrease in any of these unobservable inputs would result in a change in the fair value measurement, which may be significant. The liabilities were revalued each period-end until exercised, expired or modified to exclude recurring fair value measurement. Gains and losses on revaluation of the liabilities were recorded in other (income) expense, net in the Company’s consolidated financial statements.
Debt
Debt Disclosure [Text Block]
5. Debt

The Company's outstanding debt at September 30, 2014 was as follows:

BALANCE
 
INTEREST RATE
 
MATURITY
Line of credit
$14,900
 
5%
 
July 23, 2016


The Company has a revolving line of credit with a bank, which is secured by any and all interest the Company has in assets that are not otherwise restricted. The revolving line of credit bore a variable interest rate as of September 30, 2014 and 2013, equal to the greater of 5.0% or 1.5% plus the prime rate. Interest expense is due monthly on the outstanding principal amount with all amounts outstanding under the revolving line of credit due upon maturity in July 2016. The credit agreement requires the Company to comply with various financial and non-financial covenants. As of September 30, 2014, the Company was in compliance with these covenants. This facility also has a compensating balance requirement of $500.

Borrowings on the revolving line of credit are limited to the lesser of $15,000 in 2014 and 2013, and the total amount of cash and securities held by American Pet Insurance Company, (APIC), less up to $500 for obligations the Company may have outstanding for other ancillary services.

On March 28, 2013, the Company obtained a term loan from the same bank of $3,000 in aggregate principal. The interest rate on the term loan was the greater of 5.5% or 2.0% plus the prime rate. All amounts outstanding under the term loan, including principal and accrued interest, were payable in 30 equal monthly installments beginning on April 28, 2014. During July 2014, this outstanding term loan was repaid in full, which also resulted in a release of the Company's restricted cash.

On December 23, 2013, the Company obtained a term loan in an aggregate principal amount of $12,000. This note was entered into at a discount of $3,801 related to the issuance of warrants being deducted from the principal amount. On July 2, 2014, the Company entered into an amended and restated credit agreement in relation to this existing $12,000 term loan for a secured subordinated term loan totaling $29,000, which reflected an increase of $17,000 from the prior agreement. The amended principal amount was entered into at an additional discount of $1,123 as a result of the issuance of warrants. The term loan bore a fixed interest rate of 11.0% per year and was due on the earlier of three years from the issue date or certain triggering events, including a qualifying initial public offering, which would result in a 1.5% prepayment premium on the $17,000 increase related to the amendment. The $29,000 term loan was repaid in full on July 23, 2014 including $895 in accrued interest and a prepayment fee of $255. The unamortized discount on debt totaling $4,418 was written-off and included in interest expense in the consolidated statement of operations.
Commitment and Contingencies
Commitments and Contingencies Disclosure [Text Block]
During 2013, the Company determined that it owes goods and services tax (GST) and harmonized sales tax (HST) in Canada for certain intercompany fees charged to its Canadian entities from 2007 through 2013. The Company began a voluntary self-disclosure with the Canada Revenue Agency for these unpaid taxes in 2014 under the Canada Revenue Agency Voluntary Disclosures Program, which would, if successful, avoid the imposition of penalties for late payment. Interest will be due on the amounts owed. The Company submitted the completed voluntary self-disclosure during the second quarter of 2014. The Company has accrued $983 of GST/HST tax for the 2007 through 2013 tax years, including interest.

The Company’s subsidiary, APIC, a New York corporation, received an inquiry from the California Department of Insurance (CDOI) in 2011 alleging APIC’s trial insurance policies issued in California are in violation of California law. The Company has disputed this assertion. In July 2014, the CDOI filed a notice of non-compliance regarding this issue.  APIC received an extension to request a hearing to contest the notice. As of September 30, 2014 and December 31, 2013, the Company had accrued liabilities of $100 for this matter. While the Company intends to defend this matter vigorously, adverse outcomes beyond recorded amounts are reasonably possible. At this stage in the matter, however, the Company is unable to estimate a possible loss or range of possible loss beyond amounts previously accrued.

The Company received an inquiry from the Washington State Office of the Insurance Commissioner (OIC) in December 2012 concerning whether a subsidiary of the Company was properly licensed, and whether certain of its employees were properly licensed, under Washington law. The Company responded to this letter in January of 2013, stating that the subsidiary is licensed, and its employees are not required to be licensed under Washington law. The Company received additional correspondence from the OIC in July 2014 informing it that the OIC is scheduling a regulatory examination to further assess the Company’s compliance, which was underway at September 30, 2014.  Because of the inherent uncertainties of this matter, including the early stage and lack of specific claims, the Company currently believes the likelihood of a material loss is unlikely and cannot predict the impact (if any) that the matter may have on the Company’s business, results of operations, financial position or cash flows.
The Company is subject to a variety of other claims and suits that arise from time to time in the ordinary course of its business.
The Company makes a provision for a liability relating to legal matters when it is both probable that a liability beyond previously accrued amounts has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Although management currently believes that resolving outstanding matters, individually or in aggregate, will not have a material adverse impact on the Company’s financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.
Segments
Segment Reporting Disclosure [Text Block]
The Company has two segments: subscription business and other business. The subscription business segment includes monthly subscriptions related to the Company’s medical plan, while the other business segment includes all other business, including policies written for third parties and policies written under a federal government program. The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Corporate operating expenses, 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:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
SEPTEMBER 30,
 
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
Revenue:
 
 
 
 
 
 
 
Subscription business
$
27,517

 
$
20,007

 
$
75,965

 
$
55,392

Other business
2,795

 
2,127

 
8,077

 
4,426

 
30,312

 
22,134

 
84,042

 
59,818

Claims expenses:
 
 
 
 
 
 
 
Subscription business
20,611

 
14,002

 
54,534

 
38,442

Other business
1,197

 
808

 
3,285

 
1,878

 
21,808

 
14,810

 
57,819

 
40,320

Other cost of revenue:
 
 
 
 
 
 
 
Subscription business
2,793

 
2,115

 
7,990

 
5,847

Other business
1,266

 
1,090

 
3,882

 
2,095

 
4,059

 
3,205


11,872


7,942

Gross profit:
 
 
 
 
 
 
 
Subscription business
4,113

 
3,890


13,441


11,103

Other business
332


229


910


453

 
4,445


4,119


14,351


11,556

Sales and marketing
2,934

 
2,013

 
8,390

 
6,853

Technology and development
2,532

 
1,156

 
7,285

 
3,191

General and administrative
4,385

 
2,033

 
10,463

 
5,982

Operating loss
$
(5,406
)

$
(1,083
)

$
(11,787
)

$
(4,470
)


The following table presents the Company’s revenue by geographic region of the member:
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
SEPTEMBER 30,
 
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
United States
$
22,609

 
$
15,765

 
$
62,430

 
$
41,467

Canada
7,703

 
6,369

 
21,612

 
18,351

Total revenue
$
30,312


$
22,134


$
84,042


$
59,818


Substantially all of the Company’s long-lived assets were located in the United States as of September 30, 2014.
Nature of Operations and Summary of Significant Accounting Policies (Policies)
Description of Business
Trupanion, Inc. (collectively with its wholly-owned subsidiaries, the Company) is a direct-to-consumer monthly subscription service provider of a medical plan for cats and dogs throughout the United States, Canada and Puerto Rico.
Basis of Presentation
The condensed consolidated balance sheet data as of December 31, 2013 was derived from audited consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for unaudited condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes for the year ended December 31, 2013 included in the Company's prospectus filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933 on July 18, 2014. The accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the Company's financial position and results of its operations, as of and for the periods presented. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014, or for any other
Reclassifications
Certain prior year amounts have been reclassified within the Company’s consolidated financial statements from their original presentation to conform with the current period presentation
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies and the reported amounts of revenue and expenses. Significant items subject to such estimates and assumptions include the valuation of deferred tax assets, stock-based compensation, warrant liabilities, claims reserve, useful lives of software developed for internal use and income tax uncertainties. Actual results could differ from the estimates used in preparing the consolidated financial statements.
Income Taxes
The Company is subject to income taxes in the United States and in Canada. The provision for income taxes reflects the Company's estimated effective tax rate for the year. The difference between this rate and the U.S. federal income tax rate of 35% was primarily due to a full valuation allowance on its U.S. deferred tax assets. During the nine months ended September 30, 2014, the Company reduced its accrual for its existing uncertain tax positions by $53.
Offering Costs
Prior to the Company's initial public offering (IPO), deferred offering costs, including legal, accounting and other fees and costs related to the IPO, were capitalized and included as a noncurrent asset in the consolidated balance sheets. Upon completion of the IPO, the deferred offering costs were offset against IPO proceeds in additional paid-in capital in the consolidated balance sheet.
Initial Public Offering
On July 23, 2014 the Company completed IPO pursuant to which 8,193,750 shares of common stock were sold to the public at a price of $10.00 per share. The Company received net proceeds of approximately $72.8 million from the IPO. Upon the closing of the IPO, all shares of the outstanding convertible preferred stock and exchangeable shares automatically converted into 14,944,945 and 2,247,130 shares of common stock, respectively. If this transaction had taken place on January 1, 2014, the Company's weighted-average shares outstanding for the three and nine months ended September 30, 2014 would have been 27,135,340 and 26,900,033, respectively.

Upon completion of the IPO, 25,170 warrants to purchase preferred stock were converted into warrants for the purchase of common shares on a 1:1 basis. These warrants were classified as liabilities on the consolidated balance sheet due to terms allowing for a modification of the exercise price under certain circumstances. Upon completion of the IPO, these warrants were revalued resulting in a gain of $14 that was recorded in other (income) expense, net in the consolidated statement of operations. Immediately after the IPO, all of these warrants were exercised at the IPO price of $10.00 per share, resulting in an increase of 25,170 shares of common stock outstanding.

Immediately prior to the Company's IPO, there were warrants to purchase 1,164,085 shares of common stock outstanding, of which warrants to purchase 415,646 of shares of common stock were issued on July 2, 2014 in connection with an amended and restated credit agreement that contained terms modifying the exercise price and number of underlying shares upon completion of an IPO resulting in historical liability classification in the consolidated balance sheet. Upon the closing of the IPO, the number of shares underlying these warrants was adjusted to 869,999 shares, and the exercise price of each warrant was adjusted to $10.00 per share. These warrants were also revalued resulting in a gain of $2,040, which was recorded in other (income) expense, net in the statement of operations. Immediatly following the IPO, these warrants were no longer subject to contractual modification provisions and were reclassified from a liability classification to an equity classification on the consolidated balance sheet.

Accumulated Other Comprehensive Loss, net of tax
A rollforward of accumulated other comprehensive loss is as follows:
 
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
UNREALIZED LOSSES ON AVAILABLE FOR SALE SECURITIES
 
FOREIGN CURRENCY GAIN
Balance at December 31, 2013
$
(168
)
 
$
4

Other comprehensive loss
35

 
51

Balance at March 31, 2014
(133
)
 
55

Other comprehensive loss
60

 
(27
)
Balance at June 30, 2014
(73
)
 
28

Other comprehensive loss
17

 
25

Balance at September 30, 2014
$
(56
)
 
$
53

There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2014 and 2013.
Recent Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Insurance contracts are excluded from the scope of this new guidance. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited, and must be applied retrospectively or modified retrospectively. We are currently evaluating the impact this ASU will have on our consolidated financial statements.
Nature of Operations and Summary of Significant Accounting Policies (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Accumulated Other Comprehensive Loss, net of tax
A rollforward of accumulated other comprehensive loss is as follows:
 
ACCUMULATED OTHER COMPREHENSIVE LOSS
 
UNREALIZED LOSSES ON AVAILABLE FOR SALE SECURITIES
 
FOREIGN CURRENCY GAIN
Balance at December 31, 2013
$
(168
)
 
$
4

Other comprehensive loss
35

 
51

Balance at March 31, 2014
(133
)
 
55

Other comprehensive loss
60

 
(27
)
Balance at June 30, 2014
(73
)
 
28

Other comprehensive loss
17

 
25

Balance at September 30, 2014
$
(56
)
 
$
53

There were no reclassifications out of accumulated other comprehensive loss during the three and nine months ended September 30, 2014 and 2013.
Net Loss per Share (Tables)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
The following potential dilutive equity securities are not included in the diluted net loss per common share calculation because they would have had an antidilutive effect:
 
AS OF SEPTEMBER 30,
 
2014
 
2013
Stock options
5,082,500

 
4,597,782

Restricted stock
595,665

 
730,149

Warrants
869,999

 
135,672

Series A convertible preferred stock

 
7,466,283

Series B convertible preferred stock

 
3,546,384

Series C convertible preferred stock

 
3,845,322

Exchangeable shares

 
2,247,130

Investment Securities Available-for-Sale (Tables)
The amortized cost, gross unrealized holding gains and losses, and fair value of available-for-sale and held-to-maturity fixed maturity securities by major security type and class of security were as follows:

 
AMORTIZED
COST
 
GROSS
UNREALIZED
HOLDING
GAINS
 
GROSS
UNREALIZED
HOLDING
LOSSES
 
FAIR
VALUE
As of September 30, 2014
 
 
 
 
 
 
 
       Available-for-sale:
 
 
 
 
 
 
 
Municipal bond
$
1,000

 
$

 
$
(56
)
 
$
944

 
$
1,000

 
$

 
$
(56
)
 
$
944

       Held-to-maturity:
 
 
 
 
 
 
 
              U.S. Treasury securities
$
5,777

 
$

 
$

 
$
5,777

              Certificates of deposit
700

 

 

 
700

              U.S. government funds
12,820

 

 

 
12,820

 
$
19,297


$


$


$
19,297

 
 
 
 
 
 
 
 
 
AMORTIZED
COST
 
GROSS
UNREALIZED
HOLDING
GAINS
 
GROSS
UNREALIZED
HOLDING
LOSSES
 
FAIR
VALUE
As of December 31, 2013
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Municipal bond
$
1,000

 
$

 
$
(168
)
 
$
832

 
$
1,000


$


$
(168
)

$
832

Held-to-maturity:
 
 
 
 
 
 
 
U.S. Treasury securities
$
5,778

 
$

 
$

 
$
5,778

Certificates of deposit
2,700

 

 

 
$
2,700

U.S. government funds
7,610

 

 

 
$
7,610

 
$
16,088


$


$


$
16,088

Maturities of debt securities classified as available-for-sale were as follows:
 
SEPTEMBER 30, 2014
 
AMORTIZED
COST

FAIR
VALUE
Available-for-sale:



Due under one year
$


$

Due after one year through five years



Due after five years through ten years
1,000


944

Due after ten years




$
1,000


$
944

Maturities of debt securities classified held-to-maturity were as follows:

 
SEPTEMBER 30, 2014
 
AMORTIZED
COST
 
FAIR
VALUE
Held-to-maturity:
 
 
 
Due under one year
$
19,297


$
19,297

Due after one year through five years



Due after five years through ten years



Due after ten years




$
19,297


$
19,297

Fair Value (Tables)
The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis:
 
AS OF SEPTEMBER 30, 2014
 
FAIR VALUE
 
LEVEL 1
 
LEVEL 2
 
LEVEL 3
Assets
 
 
 
 
 
 
 
Municipal bond
944

 

 
944

 

Money market funds
$
50,500

 
$
50,500

 
$

 
$

Total
$
51,444

 
$
50,500

 
$
944

 
$

 
 
 
 
 
 
 
 
 
AS OF DECEMBER 31, 2013
 
FAIR VALUE
 
LEVEL 1
 
LEVEL 2
 
LEVEL 3
Assets
 
 
 
 
 
 
 
Restricted cash
$
3,000

 
$
3,000

 
$

 
$

Municipal bond
832

 

 
832

 

Total
$
3,832

 
$
3,000

 
$
832

 
$

Liabilities
 
 
 
 
 
 
 
Warrant liabilities
$
4,900

 
$

 
$

 
$
4,900

Total
$
4,900

 
$

 
$

 
$
4,900

A rollforward of activity in liabilities valued using Level 3 inputs is as follows:
 
WARRANT LIABILITIES
 
2014
 
2013
Balance at January 1,
$
4,900

 
$
551

Issuance of warrants

 
44

Change in fair value upon remeasurement
1,219

 
98

Balance at March 31,
6,119

 
693

Settlement of warrant liability upon exercise
(999
)
 

Change in fair value upon remeasurement
(740
)
 
28

Balance at June 30,
$
4,380

 
$
721

Issuance of warrants
1,123

 

Settlement of warrant liability upon exercise
(270
)
 

Change in fair value upon remeasurement
(2,053
)
 
3

Reclassification to stockholders' equity
(3,180
)
 

Balance at September 30,

 
724

Warrant liabilities: These liabilities are valued using the Black-Scholes-Merton option-pricing model using certain unobservable inputs that are estimated by the Company. These inputs include a measure of volatility using an average of peer companies’ publicly traded stock volatility, expected dividend payments based on management’s assertion that no dividends will be paid in the near term, the remaining contractual term and a discount rate using an average equivalent bond yield calculation. The range of inputs used is as follows:
 
THREE MONTHS ENDED
SEPTEMBER 30,
 
NINE MONTHS ENDED
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
Expected volatility
40%-41%
 
38%-40%
 
34%-46%
 
35%-46%
Expected dividends
—%
 
—%
 
—%
 
—%
Risk-free rate
1.69%-1.71%
 
1.01%-2.02%
 
0.03%-2.02%
 
0.10%-2.02%
Term
3.5-5.0 years
 
4.3-6.5 years
 
0.1-6.0 years
 
0.6-7.0 years
Debt (Tables)
Schedule of Debt [Table Text Block]
The Company's outstanding debt at September 30, 2014 was as follows:

BALANCE
 
INTEREST RATE
 
MATURITY
Line of credit
$14,900
 
5%
 
July 23, 2016
Stock-based Compensation (Tables)
The following table presents information regarding options granted, exercised and forfeited for the periods presented:
 
NUMBER
OF
OPTIONS
 
WEIGHTED-
AVERAGE
EXERCISE
PRICE
 
AGGREGATE
INTRINSIC
VALUE
December 31, 2013
4,663,445

 
$
2.12

 
$
30,406

Granted
665,100

 
10.04

 
 
Exercised
(138,878
)
 
1.16

 
1,020

Forfeited
(107,167
)
 
5.16

 
 
September 30, 2014
5,082,500

 
3.12

 
28,332

As of September 30, 2014, the stock options outstanding had a remaining contractual life of 7.0 years.
 
 
NUMBER
OF
OPTIONS
 
WEIGHTED-
AVERAGE
FAIR VALUE
 
WEIGHTED-
AVERAGE
EXERCISE
PRICE
 
WEIGHTED-
AVERAGE
REMAINING
CONTRACTUAL
TERM
(IN YEARS)
 
AGGREGATE
INTRINSIC
VALUE
Vested and exercisable at December 31, 2013
2,719,609

 
$
1.32

 
$
1.38

 
6.03
 
$
19,908

Vested and exercisable at September 30, 2014
3,418,197

 
1.47

 
1.63

 
6.06
 
23,497

The following table presents information regarding options granted, exercised and forfeited for the periods presented:
 
NUMBER
OF
OPTIONS
 
WEIGHTED-
AVERAGE
EXERCISE
PRICE
 
AGGREGATE
INTRINSIC
VALUE
December 31, 2013
4,663,445

 
$
2.12

 
$
30,406

Granted
665,100

 
10.04

 
 
Exercised
(138,878
)
 
1.16

 
1,020

Forfeited
(107,167
)
 
5.16

 
 
September 30, 2014
5,082,500

 
3.12

 
28,332

As of September 30, 2014, the stock options outstanding had a remaining contractual life of 7.0 years.
 
 
NUMBER
OF
OPTIONS
 
WEIGHTED-
AVERAGE
FAIR VALUE
 
WEIGHTED-
AVERAGE
EXERCISE
PRICE
 
WEIGHTED-
AVERAGE
REMAINING
CONTRACTUAL
TERM
(IN YEARS)
 
AGGREGATE
INTRINSIC
VALUE
Vested and exercisable at December 31, 2013
2,719,609

 
$
1.32

 
$
1.38

 
6.03
 
$
19,908

Vested and exercisable at September 30, 2014
3,418,197

 
1.47

 
1.63

 
6.06
 
23,497



Stock-based compensation expense includes stock options and restricted stock granted to employees and non-employees and has been reported in the Company’s statements of operations in claims expenses, other cost of revenue, sales and marketing, technology and development, and general and administrative expenses depending on the function performed by the employee or non-employee. During the third quarter of 2014, 116,877 shares of restricted stock, which were subject to a performance condition relating to the Company's IPO, vested resulting in $1,433 of expense included in general and administrative expense in the consolidated statement of operations. The Company measures compensation expense on a straight-line basis except for the restricted stock with the performance condition which is measured on a graded vesting schedule. The remaining 584,385 shares of unvested restricted stock related to this agreement are expected to vest over the remaining service term of approximately 5 years.
As of September 30, 2014, the Company had unrecognized stock-based compensation of $8,169 related to stock options and restricted stock held by employees and non-employees, which is expected to vest over a weighted-average period of approximately 3.2 years. As of September 30, 2014, the Company had 1,664,303 unvested stock options and 595,665 restricted stock awards that are expected to vest. No net tax benefits related to the stock-based compensation costs have been recognized since the Company’s inception. The expense recognized in each category is provided in the table below:
 
 
THREE MONTHS ENDED
SEPTEMBER 30,
 
NINE MONTHS ENDED
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
Claims expenses
$
60

 
$
44

 
$
168

 
$
116

Other cost of revenue
18

 
12

 
55

 
28

Sales and marketing
115

 
147

 
408

 
492

Technology and development
110

 
84

 
306

 
249

General and administrative
1,698

 
191

 
2,257

 
479

Total stock-based compensation
$
2,001

 
$
478

 
$
3,194

 
$
1,364

Stock-based compensation expense includes stock options and restricted stock granted to employees and non-employees and has been reported in the Company’s statements of operations in claims expenses, other cost of revenue, sales and marketing, technology and development, and general and administrative expenses depending on the function performed by the employee or non-employee. During the third quarter of 2014, 116,877 shares of restricted stock, which were subject to a performance condition relating to the Company's IPO, vested resulting in $1,433 of expense included in general and administrative expense in the consolidated statement of operations. The Company measures compensation expense on a straight-line basis except for the restricted stock with the performance condition which is measured on a graded vesting schedule. The remaining 584,385 shares of unvested restricted stock related to this agreement are expected to vest over the remaining service term of approximately 5 years.
As of September 30, 2014, the Company had unrecognized stock-based compensation of $8,169 related to stock options and restricted stock held by employees and non-employees, which is expected to vest over a weighted-average period of approximately 3.2 years. As of September 30, 2014, the Company had 1,664,303 unvested stock options and 595,665 restricted stock awards that are expected to vest. No net tax benefits related to the stock-based compensation costs have been recognized since the Company’s inception. The expense recognized in each category is provided in the table below:
 
 
THREE MONTHS ENDED
SEPTEMBER 30,
 
NINE MONTHS ENDED
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
Claims expenses
$
60

 
$
44

 
$
168

 
$
116

Other cost of revenue
18

 
12

 
55

 
28

Sales and marketing
115

 
147

 
408

 
492

Technology and development
110

 
84

 
306

 
249

General and administrative
1,698

 
191

 
2,257

 
479

Total stock-based compensation
$
2,001

 
$
478

 
$
3,194

 
$
1,364

Segments (Tables)
The Company has two segments: subscription business and other business. The subscription business segment includes monthly subscriptions related to the Company’s medical plan, while the other business segment includes all other business, including policies written for third parties and policies written under a federal government program. The chief operating decision maker uses two measures to evaluate segment performance: revenue and gross profit. Corporate operating expenses, 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:
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
SEPTEMBER 30,
 
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
Revenue:
 
 
 
 
 
 
 
Subscription business
$
27,517

 
$
20,007

 
$
75,965

 
$
55,392

Other business
2,795

 
2,127

 
8,077

 
4,426

 
30,312

 
22,134

 
84,042

 
59,818

Claims expenses:
 
 
 
 
 
 
 
Subscription business
20,611

 
14,002

 
54,534

 
38,442

Other business
1,197

 
808

 
3,285

 
1,878

 
21,808

 
14,810

 
57,819

 
40,320

Other cost of revenue:
 
 
 
 
 
 
 
Subscription business
2,793

 
2,115

 
7,990

 
5,847

Other business
1,266

 
1,090

 
3,882

 
2,095

 
4,059

 
3,205


11,872


7,942

Gross profit:
 
 
 
 
 
 
 
Subscription business
4,113

 
3,890


13,441


11,103

Other business
332


229


910


453

 
4,445


4,119


14,351


11,556

Sales and marketing
2,934

 
2,013

 
8,390

 
6,853

Technology and development
2,532

 
1,156

 
7,285

 
3,191

General and administrative
4,385

 
2,033

 
10,463

 
5,982

Operating loss
$
(5,406
)

$
(1,083
)

$
(11,787
)

$
(4,470
)
The following table presents the Company’s revenue by geographic region of the member:
 
 
THREE MONTHS ENDED
 
NINE MONTHS ENDED
 
SEPTEMBER 30,
 
SEPTEMBER 30,
 
2014
 
2013
 
2014
 
2013
United States
$
22,609

 
$
15,765

 
$
62,430

 
$
41,467

Canada
7,703

 
6,369

 
21,612

 
18,351

Total revenue
$
30,312


$
22,134


$
84,042


$
59,818

Nature of Operations and Summary of Significant Accounting Policies (Details) Narrative (USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended 3 Months Ended 9 Months Ended
Jul. 23, 2014
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Sep. 30, 2014
Sep. 30, 2013
Jul. 23, 2014
Jul. 22, 2014
Dec. 31, 2013
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Shares of common stock issued in initial public offering
 
 
 
 
 
 
 
 
 
8,193,750 
 
 
Fair value adjustment of warrants
 
$ (2,053)
$ (740)
$ 1,219 
$ 3 
$ 28 
$ 98 
$ (1,574)
$ 129 
 
 
 
Preferred shares converted into common shares
 
14,944,945 
 
 
 
 
 
14,944,945 
 
 
 
 
Exchangeable shares converted into common shares
 
2,247,130 
 
 
 
 
 
2,247,130 
 
 
 
 
Warrants outstanding
 
 
 
 
 
 
 
 
 
869,999 
1,164,085 
 
Common Shares from conversion of preferred warrants
 
 
 
 
 
 
 
 
 
25,170 
 
 
Warrants issued
 
415,646 
 
 
 
 
 
415,646 
 
 
 
 
Weighted-average shares, if-converted with initial public offering
 
27,135,340 
 
 
 
 
 
26,900,033 
 
 
 
 
Warrants converted into preferred shares
 
 
 
 
 
 
 
 
 
25,170 
 
 
Proceeds from issuance initial public offering
72,778 
 
 
 
 
 
 
72,946 
 
 
 
Uncertain tax position reduction
 
 
 
 
 
 
 
53 
 
 
 
 
Deferred offering costs
 
 
 
 
 
 
 
 
 
54 
IPO [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Sale of stock, price per share
$ 10.00 
 
 
 
 
 
 
 
 
$ 10.00 
 
 
Common Stock [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Fair value adjustment of warrants
 
2,040 
 
 
 
 
 
 
 
 
 
 
Preferred Stock [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Class of Stock [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Fair value adjustment of warrants
 
$ 14 
 
 
 
 
 
 
 
 
 
 
Nature of Operations and Summary of Significant Accounting Policies (Details) OCI (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
 
 
 
 
Accumulated other comprehensive loss: unrealized loss on available for sale securities
$ (56)
$ (73)
$ (133)
 
$ (56)
 
$ (168)
Accumulated other comprehensive loss: foreign currency gain
53 
28 
55 
 
53 
 
Available-for-sale securities, gross unrealized loss
17 
60 
35 
 
 
 
 
Unrealized foreign currency gain (loss)
$ 25 
$ (27)
$ 51 
$ (29)
$ 49 
$ 29 
 
Net Loss per Share (Details) Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Jul. 23, 2014
Jul. 22, 2014
Sep. 30, 2014
Stock options
Sep. 30, 2013
Stock options
Sep. 30, 2014
Restricted stock
Sep. 30, 2013
Restricted stock
Sep. 30, 2014
Warrants
Sep. 30, 2013
Warrants
Sep. 30, 2014
Series A convertible preferred stock
Sep. 30, 2013
Series A convertible preferred stock
Sep. 30, 2014
Series B convertible preferred stock
Sep. 30, 2013
Series B convertible preferred stock
Sep. 30, 2014
Series C convertible preferred stock
Sep. 30, 2013
Series C convertible preferred stock
Sep. 30, 2014
Exchangeable shares
Sep. 30, 2013
Exchangeable shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares attributable to dilutive effect of stock options
 
 
5,082,500 
4,597,782 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares attributable to dilutive effect of restricted stock
 
 
 
 
595,665 
730,149 
 
 
 
 
 
 
 
 
 
 
Common shares attributable to dilutive effect of warrants
869,999 
1,164,085 
 
 
 
 
869,999 
135,672 
 
 
 
 
 
 
 
 
Common shares attributable to dilutive effect of preferred stock
 
 
 
 
 
 
 
 
7,466,283 
3,546,384 
3,845,322 
 
 
Common shares attributable to dilutive effect of exchangeable shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,247,130 
Investment Securities (Details) Investment Schedule (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Investment [Line Items]
 
 
 
 
Held-to-maturity securities, amortized cost
$ 19,297 
 
 
$ 16,088 
Held-to-maturity securities, gross unrealized holding gains
 
 
Held-to-maturity securities, gross unrealized holding losses
 
 
Held-to-maturity securities, fair value
19,297 
 
 
16,088 
Available-for-sale securities, amortized cost
1,000 
 
 
1,000 
Available-for-sale securities, gross unrealized holding losses
 
 
 
Available-for-sale securities, gross unrealized holding losses
56 
73 
133 
168 
Available-for-sale securities, fair value
944 
 
 
832 
Municipal bond
 
 
 
 
Investment [Line Items]
 
 
 
 
Available-for-sale securities, amortized cost
1,000 
 
 
1,000 
Available-for-sale securities, gross unrealized holding losses
 
 
 
Available-for-sale securities, gross unrealized holding losses
56 
 
 
168 
Available-for-sale securities, fair value
944 
 
 
832 
U.S. Treasury securities
 
 
 
 
Investment [Line Items]
 
 
 
 
Held-to-maturity securities, amortized cost
5,777 
 
 
5,778 
Held-to-maturity securities, gross unrealized holding gains
 
 
Held-to-maturity securities, gross unrealized holding losses
 
 
Held-to-maturity securities, fair value
5,777 
 
 
5,778 
Certificates of deposit
 
 
 
 
Investment [Line Items]
 
 
 
 
Held-to-maturity securities, amortized cost
700 
 
 
2,700 
Held-to-maturity securities, gross unrealized holding gains
 
 
Held-to-maturity securities, gross unrealized holding losses
 
 
Held-to-maturity securities, fair value
700 
 
 
2,700 
US government debt securities
 
 
 
 
Investment [Line Items]
 
 
 
 
Held-to-maturity securities, amortized cost
12,820 
 
 
7,610 
Held-to-maturity securities, gross unrealized holding gains
 
 
Held-to-maturity securities, gross unrealized holding losses
 
 
Held-to-maturity securities, fair value
$ 12,820 
 
 
$ 7,610 
Investment Securities (Details) Narrative (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
 
 
Available-for-sale securities, continuous unrealized loss position, fair value
$ 56 
$ 168 
Available-for-sale securities, debt maturities, fair value
$ 944 
$ 832 
Investment Securities (Details) Held-to-Maturity (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
 
 
Held-to-maturity securities, debt maturities, within one year, net carrying amount
$ 19,297 
 
Held-to-maturity securities, debt maturities, within one year, fair value
19,297 
 
Held-to-maturity securities, debt maturities, year two through five, net carrying amount
 
Held-to-maturity securities, debt maturities, year two through five, fair value
 
Held-to-maturity securities, debt maturities, year six through ten, net carrying amount
 
Held-to-maturity securities, debt maturities, year six through ten, fair value
 
Held-to-maturity securities, debt maturities, after ten years, net carrying amount
 
Held-to-maturity securities, debt maturities, after ten years, fair value
 
Held-to-maturity securities, amortized cost
19,297 
16,088 
Held-to-maturity securities, fair value
$ 19,297 
$ 16,088 
Investment Securities (Details) Available-for-Sale (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
 
 
Available-for-sale securities, debt maturities, next twelve months, amortized cost basis
$ 0 
 
Available-for-sale securities, debt maturities, next twelve months, fair value
 
Available-for-sale securities, debt maturities, year two through five, amortized cost basis
 
Available-for-sale securities, debt maturities, year two through five, fair value
 
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
944 
 
Available-for-sale securities, debt maturities, after ten years, amortized cost basis
 
Available-for-sale securities, debt maturities, after ten years, fair value
 
Available-for-sale securities, amortized cost
1,000 
1,000 
Available-for-sale securities, debt maturities, fair value
$ 944 
$ 832 
Fair Value (Details) Unobservable (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Marketable Securities, Noncurrent
$ 944 
 
 
$ 832 
 
 
 
 
Assets, Fair Value Disclosure
51,444 
 
 
3,832 
 
 
 
 
Warrants and Rights Outstanding
4,380 
6,119 
4,900 
724 
721 
693 
551 
Financial and Nonfinancial Liabilities, Fair Value Disclosure
 
 
 
4,900 
 
 
 
 
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Assets, Fair Value Disclosure
50,500 
 
 
3,000 
 
 
 
 
Warrants and Rights Outstanding
 
 
 
 
 
 
 
Financial and Nonfinancial Liabilities, Fair Value Disclosure
 
 
 
 
 
 
 
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Assets, Fair Value Disclosure
944 
 
 
832 
 
 
 
 
Warrants and Rights Outstanding
 
 
 
 
 
 
 
Financial and Nonfinancial Liabilities, Fair Value Disclosure
 
 
 
 
 
 
 
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Assets, Fair Value Disclosure
 
 
 
 
 
 
Warrants and Rights Outstanding
 
 
 
4,900 
 
 
 
 
Financial and Nonfinancial Liabilities, Fair Value Disclosure
 
 
 
4,900 
 
 
 
 
Money Market Funds [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
50,500 
 
 
 
 
 
 
 
Restricted Cash and Cash Equivalents
 
 
 
3,000 
 
 
 
 
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
50,500 
 
 
 
 
 
 
 
Restricted Cash and Cash Equivalents
 
 
 
3,000 
 
 
 
 
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
 
 
 
 
 
 
 
Restricted Cash and Cash Equivalents
 
 
 
 
 
 
 
Money Market Funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
 
 
 
 
 
 
 
Restricted Cash and Cash Equivalents
 
 
 
 
 
 
 
Municipal bond
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Marketable Securities, Noncurrent
944 
 
 
832 
 
 
 
 
Municipal bond |
Fair Value, Inputs, Level 1 [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Marketable Securities, Noncurrent
 
 
 
 
 
 
Municipal bond |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Marketable Securities, Noncurrent
944 
 
 
832 
 
 
 
 
Municipal bond |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
Marketable Securities, Noncurrent
$ 0 
 
 
$ 0 
 
 
 
 
Fair Value (Details) Narrative (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Term Loan, 11% Interest Rate [Member] |
Subordinated Debt [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Long-term Debt, Fair Value
$ 12,000 
Term Loan, 5.5% Interest Rate [Member] |
Secured Debt [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Long-term Debt, Fair Value
$ 3,000 
Fair Value (Details) Rollforward of Level 3 (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Jun. 30, 2014
Mar. 31, 2014
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Sep. 30, 2014
Sep. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Fair Value Disclosures [Abstract]
 
 
 
 
 
 
 
 
 
 
Warrant liabilities
$ 0 
$ 4,380 
$ 6,119 
$ 724 
$ 721 
$ 693 
$ 0 
$ 724 
$ 4,900 
$ 551 
Stock and warrants issued during period (in shares)
1,123 
 
 
44 
 
 
 
 
Settlement of warrant liability awards
(270)
(999)
 
 
1,270 
 
 
Adjustments to additional paid-in capital, warrants issued
(3,180)
 
 
 
 
 
 
 
 
Fair value adjustment of warrants
$ (2,053)
$ (740)
$ 1,219 
$ 3 
$ 28 
$ 98 
$ (1,574)
$ 129 
 
 
Fair Value (Details) Parenthetical
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Fair Value Assumptions, Expected Dividend Rate
0.00% 
0.00% 
0.00% 
0.00% 
Minimum [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Fair Value Assumptions, Expected Volatility Rate
40.00% 
38.00% 
34.00% 
35.00% 
Fair Value Assumptions, Risk Free Interest Rate
1.69% 
1.01% 
0.03% 
0.10% 
Fair Value Assumptions, Expected Term
3 years 6 months 0 days 
9 months 11 days 
1 month 11 days 
9 months 11 days 
Maximum [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
Fair Value Assumptions, Expected Volatility Rate
41.00% 
40.00% 
46.00% 
46.00% 
Fair Value Assumptions, Risk Free Interest Rate
1.71% 
2.02% 
2.02% 
2.02% 
Fair Value Assumptions, Expected Term
5 years 0 months 0 days 
6 years 9 months 11 days 
6 months 11 days 
7 months 11 days 
Debt (Details) Schedule of Debt (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Dec. 31, 2013
Sep. 30, 2014
Line of Credit [Member]
Line of Credit Due 2016 [Member]
Debt Instrument [Line Items]
 
 
Principal
 
$ 14,900 
Debt instrument, interest rate, stated percentage
0.00% 
5.00% 
Maturity
 
Jul. 23, 2016 
Debt (Details) Narrative (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Mar. 31, 2013
Sep. 30, 2014
Sep. 30, 2013
Jul. 23, 2014
Jul. 2, 2014
Dec. 31, 2013
Jul. 23, 2014
Subordinated Debt [Member]
Term Loan, 11% Interest Rate [Member]
Jun. 30, 2014
Subordinated Debt [Member]
Term Loan, 11% Interest Rate [Member]
Dec. 31, 2013
Subordinated Debt [Member]
Term Loan, 11% Interest Rate [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Line of credit facility, interest rate description
 
 
greater of 5.0% or 1.5% plus the prime rate 
 
 
 
 
 
 
 
Compensating balance
$ 500 
 
$ 500 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
 
 
 
15,000 
 
 
 
Proceeds from issuance of debt
17,000 
3,000 
17,000 
3,700 
 
 
 
 
 
 
Term loan, interest rate description
 
 
greater of 5.5% or 2.0% plus the prime rate 
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
29,000 
12,000 
12,000 
Unamortized loan commitment and origination fees and unamortized discounts or premiums
 
 
 
 
 
1,123 
3,801 
 
 
 
Debt instrument, interest rate, stated percentage
 
 
 
 
 
 
0.00% 
 
 
 
Prepayment penalty rate on subordinated debt
 
 
 
 
1.50% 
 
 
 
 
 
Debt instrument, increase, accrued interest
 
 
895 
 
 
 
 
 
 
 
Payments of debt extinguishment costs
255 
 
 
 
 
 
 
 
 
 
Amortization of debt discount (premium)
$ 4,418 
 
$ 4,925 
$ 14 
 
 
 
 
 
 
Commitment and Contingencies (Details) Narrative (USD $)
In Thousands, unless otherwise specified
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
 
GST/HST tax accrual
$ 983 
Loss contingency accrual
$ 100 
Stock-based Compensation (Details) Options Granted, Exercised and Forfeited (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Stock-based Compensation
 
 
Stock-based compensation, options, forfeited, weighted-average exercise price
$ 5.16 
 
Stock-based compensation, options, outstanding, number of shares
5,082,500 
4,663,445 
Stock-based compensation, options, outstanding, weighted-average exercise price
$ 3.12 
$ 2.12 
Stock-based compensation, options, outstanding, aggregate intrinsic value
$ 28,332 
$ 30,406 
Stock-based compensation, options, granted, number of options
665,100 
 
Stock-based compensation, options, granted, weighted-average exercise price
$ 10.04 
 
Stock-based compensation, options, exercised, weighted-average exercise price
$ 1.16 
 
Stock-based compensation, options, exercised
(138,878)
 
Stock-based compensation, options, exercised, aggregate intrinsic value
$ 1,020 
 
Stock-based compensation, options, forfeited
(107,167)
 
Stock-based Compensation (Details) Vested and Expected to Vest (USD $)
In Thousands, except Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Number of options
3,418,197 
2,719,609 
Weighted-average fair value
$ 1.47 
$ 1.32 
Weighted-average exercise price
$ 1.63 
$ 1.38 
Weighted-average remaining contractual term (in years)
6 years 0 months 22 days 
6 years 0 months 11 days 
Aggregate intrinsic value
$ 23,497 
$ 19,908 
Stock-based Compensation (Details) Expense Category (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Stock-based Compensation
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
$ 2,001 
$ 478 
$ 3,194 
$ 1,364 
Claims expense
 
 
 
 
Stock-based Compensation
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
60 
44 
168 
116 
Other cost of revenue
 
 
 
 
Stock-based Compensation
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
18 
12 
55 
28 
Sales and marketing
 
 
 
 
Stock-based Compensation
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
115 
147 
408 
492 
Technology and development
 
 
 
 
Stock-based Compensation
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
110 
84 
306 
249 
General and administrative
 
 
 
 
Stock-based Compensation
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost
$ 1,698 
$ 191 
$ 2,257 
$ 479 
Stock-based Compensation (Details) Narrative (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Restricted Shares Vested Contingent on Initial Public Offering
116,877 
116,877 
Restricted Stock Expense for Chief Executive Officer
$ 1,433 
 
Unvested Portion of Restricted Stock Grant with IPO Performance Condition
584,385 
584,385 
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized
$ 8,169 
$ 8,169 
Remaining contractual life, share-based payments, weighted average
 
6 years 11 months 16 days 
Share-based compensation arrangement , non-employee, weighted average remaining vesting period
 
3 years 2 months 15 days 
Share-based compensation arrangement by share-based payment award, options, nonvested, number of shares
1,664,303 
1,664,303 
Restricted stock, expected to vest
 
595,665 
Segments (Details) Business Segment (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
$ 30,312 
$ 22,134 
$ 84,042 
$ 59,818 
Claims expenses
21,808 
14,810 
57,819 
40,320 
Other cost of revenue
4,059 
3,205 
11,872 
7,942 
Gross profit
4,445 
4,119 
14,351 
11,556 
Sales and marketing
2,934 
2,013 
8,390 
6,853 
Technology and development
2,532 
1,156 
7,285 
3,191 
General and administrative
4,385 
2,033 
10,463 
5,982 
Operating loss
(5,406)
(1,083)
(11,787)
(4,470)
Subscription business
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
27,517 
20,007 
75,965 
55,392 
Claims expenses
20,611 
14,002 
54,534 
38,442 
Other cost of revenue
2,793 
2,115 
7,990 
5,847 
Gross profit
4,113 
3,890 
13,441 
11,103 
Other business
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenue
2,795 
2,127 
8,077 
4,426 
Claims expenses
1,197 
808 
3,285 
1,878 
Other cost of revenue
1,266 
1,090 
3,882 
2,095 
Gross profit
$ 332 
$ 229 
$ 910 
$ 453 
Segments (Details) Revenue by Geography (USD $)
In Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Sep. 30, 2014
Sep. 30, 2013
Segment Reporting Information [Line Items]
 
 
 
 
Revenues
$ 30,312 
$ 22,134 
$ 84,042 
$ 59,818 
CANADA
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues
7,703 
6,369 
21,612 
18,351 
UNITED STATES
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Revenues
$ 22,609 
$ 15,765 
$ 62,430 
$ 41,467