#1Inovalon Investor Overview Presentation August 2020 inovalon ®#2Cautionary Note Regarding Forward-Looking Statement Certain statements contained in this presentation constitute forward-looking statements within the meaning of, and are intended to be covered by the safe harbor provisions of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this presentation other than statements of historical fact, including but not limited to statements regarding the roll-out of any product or capability, the timing, performance characteristics and utility of any such product or capability, and the impact of any such product or capability on the healthcare industry, future results of operations and financial position, business strategy and plans, market growth, and objectives for future operations, are forward-looking statements. The words “believe,” “may,” “see," "will," "estimate," "continue," "anticipate," "assume," "intend," "expect," "project," "look forward," "promise" and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this presentation include, but are not limited to, statements regarding expectations about future business plans, prospective performance and opportunities, strategies and business plans, expectations regarding future results, expectations regarding the size of our datasets, expectations regarding implementation timeframes, our ability to meet financial guidance for the third quarter and full year 2020, expectations regarding future contract wins, our ability to pay down outstanding indebtedness, expectations regarding interest payments and rates, expectations regarding tax rates, expectations regarding and/or estimates of ACV and TCV, statements with respect to visibility, revenue retention, recurring revenue, including ACV and TCV, and the impact of the COVID-19 pandemic on our business and operations. Inovalon has based these forward-looking statements largely on current expectations and projections about future events and trends that may affect financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs as of the date of this presentation. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, which could cause the future events and trends discussed in this presentation not to occur and could cause actual results to differ materially and adversely from those anticipated or implied in the forward-looking statements. These risks, uncertainties, and assumptions include, among others: the effects and potential effects of the COVID-19 pandemic on our business, cash flow, liquidity and results of operations due to, among other things, effects on the economy generally and on our customers, including the possible effects of significant rising unemployment, the inability of consumers to timely pay our customers and the resulting potential inability of our customers to pay the fees under our contracts on time or in full; the delay in the contracting for services by our customers as a result of the COVID-19 pandemic; potential other delays in the sales cycle for new customers and products; and other unforeseen impacts on our customers and potential customers and on our employees that could have a negative impact on us; the Company's ability to continue and manage growth, including successfully integrating acquisitions; ability to grow the client base, retain and renew the existing client base and maintain or increase the fees and activity with existing clients; the effect of the concentration of revenue among top clients; the ability to innovate new services and adapt platforms and toolsets; the ability to successfully implement growth strategies, including the ability to expand into adjacent verticals, such as direct to consumer, growing channel partnerships, expanding internationally and successfully pursuing acquisitions; the ability to successfully integrate our acquisitions and the ability of the acquired business to perform as expected; the successful implementation and adoption of new platforms and solutions, including the Inovalon ONE® Platform, ScriptMed Ⓡ Cloud, Clinical Data Extraction as a Service (CDEaaSTM), Natural Language Processing as a Service (NLPaaS™), Elastic Container Technology (ECTTM), Consumer Health Gateway TM, Infection Watch TM, Healthcare Data Lake, and the Telehealth configuration of the Inovalon ONE® Platform; the possibility of technical, logistical or planning issues in connection with the Company's investment in and successful deployment of the Company's products, services and technological advancements; the ability to enter into new agreements with existing or new platforms, products and solutions in the timeframes expected, or at all; the impact of pending M&A activity in the managed care industry, including potential positive or negative impact on existing contracts or the demand for new contracts; the effects of and costs associated with compliance with regulations applicable to the Company, including regulations relating to data protection and data privacy; the effects of changes in tax laws in the jurisdictions in which we operate; the ability to protect the privacy of clients' data and prevent security breaches; the effect of competition on the business; the timing, size and effect of business realignment and restructuring charges; and the efficacy of the Company's platforms and toolsets. Additional information is also set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 19, 2020, included under Part I, Item 1A, "Risk Factors," and in subsequent filings with the SEC. In addition, graphics, images or illustrations pertaining to or demonstrating our products, data, services and/or technology that may be used herein are intended for illustrative purposes only unless otherwise noted. The Company is under no duty to, and disclaims any obligation to, update any of these forward-looking statements after the date of this presentation or conform these statements to actual results or revised expectations, except as required by law. Non-GAAP Financial Measures: This presentation contains certain non-GAAP measures. These non-GAAP measures are in addition to, not a substitute for or necessarily superior to, measures of financial performance in accordance with U.S. GAAP. The GAAP measure most closely comparable to each non-GAAP measure used or discussed, and a reconciliation of the differences between each non-GAAP measure and the comparable GAAP measure, is available herein and within our public filings with the SEC. All data provided is as of June 30, 2020 unless stated otherwise. INOV Investor Presentation (8.20) v 1.0.3 2#3Contents INOV Investor Presentation (8.20) v 1.0.3 Overview of Inovalon 2 Market Opportunity 3 Financials 4 Conclusion 5 Appendix 3#4FY2019 Takeaways... Early Innings of a $161B Opportunity helping our clients drive measurable Value by empowering the industry's transformation to Data-Driven healthcare in the Cloud FY 2019 Results: • • Revenue of $642.4 million, up 22% YoY Gross margin of 73.9%, up 130bp YoY Adj. EBITDA of $210.7M, up 39% YoY Adj. EBITDA margin of 33%, up 400bp YoY Non-GAAP net income per share of $0.52, up 93% YoY Free cash flow of $47.5M, up 87% YoY Recurring subscription-based platform revenue growth - now 83% of Revenue and growing, with Record Q4 2019 New Sales ACV of $73.5M up 60% YoY with strong new client logo growth * All numbers refer to 2019 reported results provided by the Company on February 19, 2020. ACV refers to Q4 year-over-year change compared to 2019 INOV Investor Presentation (8.20) v 1.0.3 4#5Q2 2020 Financial Highlights During Q2 2020 Inovalon's revenue grew 3% year-over-year to $162.2 million, and subscription-based platform revenue grew 13% year-over-year to $142.1 million, representing 88% of Q2 2020 total revenue. Inovalon signed new and expanded contracts totaling a record new sales ACV of $75.7 million. Strong operational leverage resulted in Q2 2020 Adjusted EBITDA of $56.6 million, representing an Adjusted EBITDA margin of 35%. Non-GAAP EPS for the period was $0.15 per share. Subscription-Based Platform Revenue of $142.1M Representing Strong Growth of 13% year-over-year Adj EBITDA Growth $56.6M Representing a 35% Adjusted EBITDA Margin Quarterly New Sales Annual Contract Value (ACV) to a Record $75.7M An increase of 38% year-over-year Non-GAAP EPS Growth of 15% year-over-year to $0.15 per share INOV Investor Presentation (8.20) v 1.0.3 5#6inovalon Payers Pharmacies Pharmaceuticals l-1 Devices Diagnostics The Inovalon ONE® Platform 010100 10101001 0101000 0101009 1010100 0010001 0011 001 a Inovalon is a leading provider of cloud- based platforms empowering data-driven healthcare. Inovalon provides cloud-based, real-time connectivity, analytics, intervention, and data visualization solutions for hundreds of the nation's leading health plans, pharmacy organizations, life sciences companies, and more than 76,000 acute, post-acute, and ambulatory provider sites with capabilities informed by the data of more than 319 million patients and nearly 56 billion medical events. +HOSPITAL+ H Massive Data Assets INOV Investor Presentation (8.20) v 1.0.3 Acute Providers Home Care SNF Hospice Post-Acute Providers Advanced Analytics Intervention Toolsets Data Visualization Ambulatory Providers Patients 6#7Empowering Data-Driven Healthcare In Scale The reach of Inovalon's platform has grown to touch the vast majority of the United States, able to empower the market's largest data-driven healthcare initiatives. 100s Health Plans, Providers, Life Sciences, Pharmacy, and Diagnostics Organizations 319M+ Patients 76K+ Provider Sites INOV Investor Presentation (8.20) v 1.0.3 Alaska Hawaii KEY ° 100,000,000+ The MORE Registry mecical events incidents = Connected Provider Client Sites Inovalon Headquarters = Office/Data Center Location Puerto Rico 7#8Number of Solutions Utilizing Modules in the Inovalon ONE® Platform Inovalon's Business Model Inovalon's business model is comprised predominantly (85% expected in 2020) of cloud-based subscription-based engagements with healthcare enterprises. Fees are charged predominantly in a Per Member Per Month (PMPM) manner or other monthly manner related to patient volume, use, and activity on the Platform. The more Modules of the Inovalon ONE® Platform engaged, generally the higher the fee charged across the relevant patient base. Once an organization starts using the Platform, it is easy to expand to additional capability Modules (raising the "P") or to additional patient memberships (raising the "Q"). Additionally, there is a cross-entity synergy and network effect. The more health plans that are engaged, the more appealing certain Modules are to pharmacy organizations, for example. This virtuous cycle of client value expansion drives a network effect of value to clients and to Inovalon. Payer Clients Provider Clients Pharmacy Clients Life Sciences Clients INOV Investor Presentation (8.20) v 1.0.3 Denotes Inter-Client Network Effect Synergy of connectivity into and utilization of the Inovalon ONE® Platform begetting greater value for clients and incremental business expansion for Inovalon 8#9Cloud-Based Platform Approach Inovalon provides its solutions to the marketplace through the Inovalon ONE® Platform: an integrated, real-time cloud native platform which brings together the capabilities of extensive healthcare ecosystem connectivity, massive scale datasets, advanced analytics, and data-driven intervention toolsets. Together, the capabilities of the platform enable both the efficient determination of highly meaningful insights and the reliable achievement of meaningful impact in the quality and economics of healthcare. Clients/Partners Interactive Connectivity Inovalon & Commercial Cloud R Payer Applications Provider Applications Pharmacy Applications Life Sciences Applications = Application Connectivity API Gateway Data Analytics (Traditional Methodologies, Machine Learning, Artificial Intelligence, Deep Learning) Data Exchange Data Aggregation and Access Shared Services ⚫ Diagnosis, lab, . Eligibility and procedure, and pharmacy claims Enrollment data DME usage data I . Electronic Health Record (EHR) . Lab results data . Provider data clinical data . Patient-reported data . Demographic data . Socioeconomic data . Facility census I and staffing data . Cost data INOV Investor Presentation (8.20) v 1.0.3 . . . iPORT HD™ Customer-Specific Data Stores The MORE² RegistryⓇ • • 319M Unique Patients 56B Medical Events 1,005,000 Physicians 559,000 Clinical Facilities 9#10Patient Count (millions) 320 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0 Massive Real-World Data Assets Inovalon leverages massive datasets to deliver differentiated capabilities to its clients. These datasets are expanding rapidly. As of the end of Q2 2020, the MORE² RegistryⓇ dataset contained more than 319 million unique patient counts and nearly 56 billion medical event counts, increases of 15% and 22%, respectively, compared with June 30, 2019. One of the industry's largest independent healthcare datasets, with more than 319M patients and nearly 56B medical events Primary-sourced, fully linkable, longitudinally-matched data from all major U.S. healthcare programs Contains EHR, claims, scripts, labs, provider, demographic data and more Qualified Entity (QE) containing CMS' Fee for Service Medicare Data Empowers and informs our industry-leading analytics and artificial intelligence, creating meaningful differentiation and client value Medical Event Count (billions) MORE² REGISTRY® DATASET GROWTH Medical Event Count 56 54 52 Patient Count 50 2224724332232222206120864NO 48% Medical Event Count Expansion (2016-2020 CAGR) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q20 INOV Investor Presentation (8.20) v 1.0.3 10#11Benefits of Inovalon's Massive Primary-Source Dataset The significant size, extensive breadth of data types, historical duration, recency timeliness, and fully linkable primary- sourced nature of Inovalon's datasets provides a uniquely rich, longitudinally matched real-world dataset able to empower highly differentiated and highly valued capabilities. Training Advanced Artificial Intelligence Algorithms Key to the development, training, and improvement of AI, ML, and DL algorithms is the depth, breadth, timeline duration, and timeliness of training datasets. As a result of Inovalon's unique datasets, the Company is able to apply a wide array of advanced machine learning, artificial intelligence, and deep learning algorithms to achieve highly differentiated, high-value impact within the Company's applications. ९९१११ Enabling Outcomes-Based and Relative-Performance Analytics All value-based engagements, outcomes-based contracts, risk-based payment models, and all quality incentive programs are based on relative performance - graded on a dynamic curve. Without knowing how the relevant comparative population is performing today, healthcare organizations are shooting in the dark, potentially wasting critical resources on the wrong issues. = Healthcare Organization Informing Patient-Specific & Consumer Solutions Healthcare is moving a direction of increasing patient-specific engagements and consumerism focused offerings. The breadth, depth, and primary source nature of Inovalon's datasets is highly valuable and uniquely able to empower and deliver highly granular patient-specific consumer-focused insights, details, and empowerment, bringing to life what is believed to be the largest transformation segment of healthcare in the years ahead. Further, patient-specific data eliminates time-delays and operational costs otherwise caused today within the market when additional or confirmatory information is needed with respect to a specific patient or case. Supporting Large-Scale Real World Evidence (RWE) Research and Insights Inovalon's very-large scale RWE datasets empowers the Company to deliver solutions of great value to the pharmaceutical, device manufacturer, and research marketplace. RWE enables the healthcare ecosystem to make highly informed models, algorithms and decisions for numerous use cases including diagnosis and treatment protocol determination tools, clinical trial design and execution, medication formulary optimization, outcomes-based contract structuring and honing, payment model design, and many other use cases. ? ㅁㅁ 11010110 01101011 INOV Investor Presentation (8.20) v 1.0.3 11#12Highly Differentiated Within the Market A leader in providing cloud-based tools to support data-driven healthcare, Inovalon empowers clients to achieve their clinical quality and financial goals by bringing highly differentiated capabilities to bear - unavailable from any other platform provider. Market's Largest Primary-Source Real World Dataset Enabling Meaningful Insight and Impact: Deep data informs the most advanced algorithms and translates into highly differentiated insights that help to achieve the most advanced impact. Availability of data further reduces time- to-care, operational costs, and human error rates. 319M+ Patients 1M+ Providers 010100 0101001 0101000 0101000 56B Medical Events Industry-Leading Analytics: The extensive array of highly data-trained and time- tested algorithms developed and honed by Inovalon provide for many steps within the inherently complex processes of real-world healthcare operations to be improved - thus achieving a superior, multi-faced approach to improve care outcomes and economics. The ongoing flow of data and access to outcomes feedback inherent to Inovalon's platform further translates into a cycle of continuous improvement that has meaningfully demonstrated substantive differentiation of Inovalon's analytics versus alternatives. 101111111 10000. Breadth of Connectivity: Inovalon has achieved wide connectivity with hundreds of thousands of physicians, payers, EHRS, HIES and the data pertaining to hundreds of millions of patients. This connectivity allows for real-time data capture, real-time application of resulting insights - driving real-time impact and achievement of value. Scale, Speed & The Power of Compute: Sophisticated proprietary cloud architectures and massive cloud-based compute environments allow for highly advanced analyses of large datasets in real time, allowing clients to garner and apply the most advanced insights quickly - to impact strategy, clinical care, and financial performance - allowing clients to win within their highly competitive environments. 100.000.000 Puerta Fict INOV Investor Presentation (8.20) v 1.0.3 12#13Executing on Strategy Inovalon's three strategy guideposts are lead in innovation, become the enablement layer, and land and expand efficiently. Inovalon Lead in Innovation Bring to market the industry's most advanced, most differentiated, cloud- based software platforms, with the greatest breadth of connectivity, the deepest access to primary source data, and the most advanced analytics to empower the transformation of data- driven healthcare. Become the Enablement Layer Leverage the resulting capabilities of the Company's innovation to become the ubiquitous, independent "enablement layer" serving as the "Intel® Inside TM" that empowers the healthcare ecosystem's innumerable transformation initiatives driving an increasingly accelerating network effect and virtuous cycle. Land and Expand Efficiently Provide capabilities in highly efficient, scalable, client-friendly, flexible ways that aligned with the growth and success of our clients - resulting in strong growth and stickiness with strong operating leverage and resulting financial performance. INOV Investor Presentation (8.20) v 1.0.3 13#14Contents 1 Overview of Inovalon 2 Market Opportunity 3 Financials INOV Investor Presentation (8.20) v 1.0.3 4 Conclusion 5 Appendix 14#15Large Growing Market Opportunity The market for data-driven healthcare solutions continues to expand, now estimated to be approximately $161Bn in 2020. The expansion of Inovalon's capabilities over the same period has resulted in a near tripling of the portion that the Company's capabilities can serve today from approximately $10.6Bn to $27Bn over these four years. 2016 Payers $17.3Bn 2018 2020 Payers $15.6Bn Current Payer Current Payer Providers $40.1Bn Payers $18.7Bn Providers $40.6Bn Products Providers $36.2Bn Products Current $16.3Bn Current Payer $14.7Bn Current Providers Products Products $11.9Bn Current Providers Products $6.8Bn Providers Products $6.5Bn Pharmacy/Life $5.1Bn Pharmacy/Life Sciences Sciences $51.4Bn Pharmacy/Life $46.6Bn Sciences Current Pharmacy/Life Consumer $18.7Bn Sciences Products $5.8Bn Independent industry top-down market spend on software and information technology services in healthcare Bottoms-up application of existing Inovalon capabilities to respective market segment opportunity (note: 2020 removes legacy solutions) Notes: Gartner, IDC, Research and Markets and Inovalon INOV Investor Presentation (8.20) v 1.0.3 Current Consumer $33.2Bn Pharmacy/Life Sciences Products $7.0Bn $63.5Bn Current Pharmacy/Life Sciences Products $8.5Bn Consumer $37.9Bn 15#16Adjacent Market Expansion & Diversification Demand for Inovalon's cloud-based platforms and data-driven capabilities is driving expansion not only in the Company's original area of focus, the payer landscape, but also in the pharmacy/life sciences and provider landscapes, resulting in greater diversification of revenue and an expanding number and scale of cross-adjacency opportunities. 2017 15% 2018 2019 32% 35% 50% 48% 16% 69% 18% Note: Graphics do not depict category 'other', which is de minimis. INOV Investor Presentation (8.20) v 1.0.3 17% Payer Provider Pharmacy/Life Sciences 16#17Leading Client Presence Across Verticals Reflecting Inovalon's differentiated capabilities, the Company's significant client base includes 24 of the Top 25 health plans by size in the nation, 22 of the Top 25 global pharma companies, 19 of the Top 25 healthcare provider systems, and more than 76,000 U.S. provider sites. Top 25 U.S. Health Plans 24 of 25' Total U.S. Health Plans Top 25 U.S. Healthcare Provider Systems Top-25 Global Pharma Companies Pharma / Life Sciences Companies 1 103 of 4902 19 3 of 25 22 of 25* 4 130 of 1,842° Anthem BlueCross BlueShield Humana. HCSC Humana. HCSC Health Care Service Corporation HealthSpring. KAISER PERMANENTE. WellCare PREMERA HIGHMARK. aetna Walmart Gateway Health. BLUE CROSS MOLINA Horizon. HEALTHCARE Horizon Blue Cross Blue Shield of New Jersey CENŢENE™ Corporation Capital BLUE+ blue of california CPHP healthfirst JOHNS HOPKINS MEDICINE CVS Independence HCR ManorCare Bristol-Myers Squibb Walgreens Pfizer Abbott Medtronic AstraZeneca hp HP Enterprise Services gsk CardinalHealth Boehringer Ingelheim Lilly Otsuka MERCK Be well 1) Top 25 health plans based on AIS 2018 directory and CMS data; 2) Total U.S. health plans based on AIS 2018 directory; 3) Sites of care as of September 2018 based on CMS data; combined Inovalon and ABILITY site count of >50,000; 4) Top 25 pharma companies based on PharmExec's Top 50 Companies 2018; 5) Avalere client database. ABILITY Network data is not yet fully included in the metrics above. INOV Investor Presentation (8.20) v 1.0.3 17#18Continued Salesforce Focus During the second quarter of 2020, Inovalon's sales force focused on adapting to remote/virtual selling techniques, honing of newly launched product messaging, and the ongoing refinement of the Company's overall go-to-market process. The ongoing investment continues to demonstrate an expansion of sales opportunity count, size, velocity and success rate. = Technology Sales Leads = Healthcare Subject Matter Experts Sales Leads Q2 2020 FTEs = 253+ ர் = Sales Support Q1 2015 FTEs=15 Q1 2017 FTEs = 79 Q4 2018 FTEs = 210+ ரா 2015 2016 2017 Driven by Healthcare Subject Matter Experts Sales Leads Note: Figure intended to be illustrative INOV Investor Presentation (8.20) v 1.0.3 2018 2019 2020 Driven by Technology Sales Leads ரா 18#19Continued Headcount Efficiency Improvements The Company's transition to higher-valued cloud-based offerings leveraging increased connectivity, software automation, SaaS- based, and subscription-based offerings continues to witness a substantial corresponding decrease in headcount while concurrently expanding revenue and profitability. Reflecting this, headcount for the period year-end 2015 through Q2 2020 has now decreased by over 1,500, and TTM Adjusted EBITDA per headcount increased by 88% during the period. 23% Total Headcount Decrease From Year-End 2015 to TTM Q2 2020 Note: Acquisition of Avalere Health occurred prior to year-end 2015 INOV Investor Presentation (8.20) v 1.0.3 774 3,323 1,551 2,546 TTM Q4 2015 Adjusted EBITDA Per Headcount of $45,628 TTM Q4 2015 Headcount Acquired Headcount Efficiency TTM Q2 2020 88% Increase in TTM Q2 2020 Adjusted EBITDA Per Headcount of $85,641 * Total net decrease in headcount includes a gross increase of 774 headcount from acquisitions during the period, and gross headcount efficiency reductions of 1,551. 19#20Continued Solid Sales Performance The Company continued to see strong demand through the second quarter with new sales Annual Contract Value1 (ACV) achieving a new record $75.7 million, with platform new sales, excluding Services, ACV totaling $57.5 million, reflecting a year-over-year increase of 38.1% and 48.6% respectively. Total Quarterly New Sales ACV $39.0 $33.0 $32.9 $27.3 $21.6 $73.3 Total Quarterly Platform New Sales ACV (Excluding Services) $75.7 $73.5 $62.8 $58.9 $54.8 $45.9$47.9 $44.1 $45.5 $26.0 $13.2 $13.7 2$11.3 $6.2 $46.4 $57.5 $52.7 $38.7 $26.9$27.8 $28.1 $29.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 Note: Please see appendix for definitions of the footnoted terms above. INOV Investor Presentation (8.20) v 1.0.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 20 20#21Continued Growth Momentum The strong market demand for Inovalon's cloud-based platforms and data-empowered capabilities, together with the growing sophistication of sales and the increasing operating leverage of the Company's technologies and business model, is continuing to drive both meaningful momentum and strong financial performance. Demonstrating this, the graphics below compare the resulting Q2 2020 TTM to Q2 2019 TTM for revenue, Adjusted EBITDA, Non-GAAP net income per share (EPS) and Operating Cash Flow generation. Revenue Adjusted EBITDA $656.3 $218.0 12% 16% $584.6 $188.0 Non-GAAP EPS Operating Cash Flow $0.56 $129.7 18% 44% $110.2 $0.39 Q2 2019 TTM Q2 2020 TTM Q2 2019 Q2 2020 TTM TTM Q2 2019 TTM Q2 2020 TTM Q2 2019 TTM Q2 2020 TTM INOV Investor Presentation (8.20) v 1.0.3 21#22Multifaceted Growth Drivers Inovalon is in the early innings of a large industry transformation to data-driven healthcare with growth supported by multiple long-term drivers. Inovalon continues to introduce new platform capabilities for existing clients and an expanding array of adjacent markets. Strategic/Tuck- In M&A New Technologies and Adjacent Markets Strategic/Tuck-in acquisitions of customers, technologies and geographic expansion opportunities further support growth. INOV Investor Presentation (8.20) v 1.0.3 Inovalon has a strong history of up-selling and cross-selling into the company's existing client base. New Clients Cross-Selling and Up-Selling Within Existing Client Base The Expansion of Patient Populations Under Contract Inovalon continues to pursue new logos including payers, providers, pharmacy organizations, and life sciences companies. Underlying demographic and societal trends growing organic covered patient lives by approximately 5% per year. 22#23Contents 1 Overview of Inovalon 2 Market Opportunity 3 Financials INOV Investor Presentation (8.20) v 1.0.3 4 Conclusion 5 Appendix 23 23#24Strong Subscription-Based Platform Adoption The graphic below illustrates the revenue offering mix, which includes the Company's revised 2020 guidance range as updated on July 29, 2020. $675-$698 $642.4 -10% 11% -5% 26% 2016-2020G Subscription-Based CAGR $527.7 6% 11% $449.4 $427.6 9% 15% 12% 19% 34% -85% 83% 80% 66% 54% 2016 2017 All numbers in millions. Subscription-Based Platform Offerings INOV Investor Presentation (8.20) v 1.0.3 2018 2019 2020G Legacy Solutions Services 24#25Expected Quarterly Revenue Cadence The following illustration outlines the Company's current 2020 quarterly revenue cadence expectation as impacted by the COVID-19 crisis, which reflects 5% to 9% year-over-year organic revenue growth as updated on July 29, 2020. 6% -13% YoY Organic Quarterly Revenue Growth 5%-11% 3% 6% Q1 2019 Q2 2019 Q3 Q4 Q1 Q2 2019 2019 2020 2020 Q3 2020 Q4 2020 Note: Illustrative. Graphic drawn at midpoint of guidance range. INOV Investor Presentation (8.20) v 1.0.3 25 25#26Platform Mix, Pricing and Efficiency Initiatives Driving Margin Improvements and Operating Leverage Margin expansion is resulting from increasingly favorable pricing strength and mix of platform offerings, as well as technology initiatives aimed at increasing the efficiency of operations and infrastructure. Select Example Drivers of Margin Expansion Examples of Technology Utilized Impact Platform Mix Shift Platform Pricing Cloud-Based Offerings Connectivity Automation Compute Efficiency INOV Investor Presentation (8.20) v 1.0.3 The Inovalon ONE® Platform The Inovalon ONE® Platform The Inovalon ONE® Platform EHR Interoperability iPORT™ Elastic Container Technology (ECT™) Highly extensible platform offerings empower large-scale value-based initiatives for multiple constituencies, driving a higher margin profile Strong value-achievement for clients is supporting strong pricing of offerings within the marketplace Cloud-native architecture provides highly dynamic, scalable, and efficient provisioning of compute and storage Interconnect seamlessly with multiple leading EHR platforms to access clinical data without human intervention Integrate systems and data exchanges for rapid, secure, transactional processing with lower human involvement, achieving dramatically greater efficiency Multi-tenancy cloud-native compute architecture allowing for high density leveraging of aggregated cloud environment infrastructure 26 26#27Adjusted EBITDA The graphic below illustrates the Company's 2020 Adjusted EBITDA and Adjusted EBITDA margin guidance as updated on July 29, 2020. 23% CAGR 2016-2020G $109 $100 $152 $211 $226 - $236 33% 34% 29% 23% 24% 2016 2017 2018 2019 2020G % of Revenue Note: CAGR calculations undertaken to the mid-point of 2020 Guidance. All numbers in millions. Graphic drawn at midpoint of guidance range. INOV Investor Presentation (8.20) v 1.0.3 27#28Cash Flow From Operations The graphic below illustrates the Company's 2020 Cash Flow from Operations guidance as updated on July 29, 2020. 16% 2016-2020G CAGR $106 $1041 $98 --------- $93 $90 2 $160 - $175 24% 22% 22% 17% 17% 2016 2017 2018 % of Revenue 2019 2020G Note: CAGR calculations undertaken to the mid-point of 2020 Guidance. All numbers in millions. Graphic drawn at midpoint of guidance range. 1 Net cash provided by operating activities was $90.4M in 2018. Incorporated within this number was the negative impact of acquisition-related transaction cash outflows of $6.6M and integration cash outflows of $6.8M. Normalizing for these one-time items, the non-GAAP cash flow from operations would have been $104 million as represented by the green dotted line. 2. 2019 cash flow from operations was impacted by timing of certain account receivable collections, which occurred after December 31, 2019. Accordingly, the Company increased its 2020 cash flow from operations guidance by $25 million to reflect the collection of these receivable balances. INOV Investor Presentation (8.20) v 1.0.3 28#29CAPEX Returning Towards Historical Levels During the period Q3 2016 through Q1 2018, the Company elected to invest more than $40M into incremental development towards the launch of the Inovalon ONE® Platform. The period of this disproportional investment is now complete and is increasingly being harvested through the successful engagement of clients for highly-differentiated platform offerings. As a result, the Company has seen the capital investments of the Company returning back towards historical levels, and remaining substantively steady on a percentage of revenue basis. $65.5 $65.0 $60 - $641 $6.4 $58.9 $28.1 15% $39.1 $45.8 $45 - $48 $7.8 12% $26.4 9% $44.8 9% 9% $22.7 $28.5 $18.8 6% 6% $23.2 6% $13.2 $20.2 $25.2 $14.1 $15-$16 $8.9 $12.8 $8.1 $5.6 2013 2014 $1.2 2015 2016 2017 2018 2019 I Maintenance Capital Expenditure Innovation Capital Expenditure (incl. Cap. Software) I Inovalon ONE® Platform Buildout Capital Expenditure 2020G % Of Revenue 1 Numbers as of the Company's update to 2020 guidance provided on July 29, 2020. Capital Expenditure (CAPEX) is defined as the sum of Purchases of property and equipment and Investment in capitalized software. All numbers in millions. INOV Investor Presentation (8.20) v 1.0.3 29 29#30Covenant-Lite Debt Leverage On April 2, 2018, the Company put in place a $980M seven-year term debt facility and $100M five-year revolving debt facility, collectively the credit facility. Proceeds were used, among other things, to pay off all of the Company's existing debt obligations of $225M as well as to provide the financing necessary to fund a portion of the consideration paid for the ABILITY Network acquisition. Following the ABILITY acquisition, the Company's financial position remains strong, with significant liquidity, strong cash flow, and balance sheet flexibility. The term debt facility's maturity schedule provides financial flexibility with 93.7% of principal due in 2025, and the Term Loan does not contain any standing financial covenants. Additionally, the Company's interest rate swaps fix $700M, or 77%, of the credit facility's principal amount. The Company expects to apply its strong cash flow to pay down its debt to achieve a Net Debt Leverage Ratio of less than 3.00x. 3.69x Current Senior Secured Net Debt Leverage Ratio¹ Debt Maturity Profile 1,2 No Standing Financial Covenants Interest Rate 3 5.21% Weighted Average Interest Rate Net Debt 1 1 $868.7 $0.0 $4.9 $9.8 $9.8 $100.04 $9.8 $9.8 2019 2020 2021 2022 2023 2024 2025 77% of the debt interest rate is fixed 3 $912.9 I $212.9 I Floating $700.0 Credit Facility $817.3 Current ■Term Facility Revolving Facility All numbers in millions. 1 As of June 30, 2020. 2 Debt maturity includes all mandatory and fixed principal payments. 3 In 2018, the Company entered into four interest rate swaps, each of which mature in March 2025. The interest rate swaps fix the LIBOR rate component of interest on $700.0 million of the 2018 debt facility at a weighted average rate of approximately 2.8%. 4 As of July 29, 2020, the Company did not have any amount drawn under its available $100 million revolver. If the Company draws on the revolver, a maximum senior secured net leverage ratio of 7-to-1 (or better) is required to be maintained across the senior secured debt and revolver. The Revolving Facility must be repaid by 2023. INOV Investor Presentation (8.20) v 1.0.3 30#31Full Year 2020 Financial Guidance In the setting of the substantive contract wins achieved in the second quarter of 2020 and the expectation of additional substantive wins during the second half of 2020, the Company raised the low end of its revenue range and increased Adjusted EBITDA and non-GAAP diluted earnings per share, as well as made adjustments in net income and capital expenditures for the full year 2020 guidance as provided below. Financial Metric Revenue Net Income¹ Non-GAAP net income¹ Adjusted EBITDA Net Cash Provided By Operating Activities Capital Expenditures Diluted Net Income Per Share1 Non-GAAP diluted net income per share1 Previous 2020 Financial Guidance Originally Provided April 29, 2020 $672 million to $698 million $16 million to $22 million $80 million to $85 million $221 million to $231 million $160 million to $175 million $54 million to $60 million $0.11 to $0.15 $0.53 to $0.57 Updated 2020 Financial Guidance Provided July 29, 2020 $675 million to $698 million $15 million to $21 million $85 million to $91 million $226 million to $236 million $160 million to $175 million $60 million to $64 million $0.10 to $0.14 $0.57 to $0.61 YOY Change 5% to 9% 92% to 169% 10% to 17% 7% to 12% 50% to 64% 2% to 9% 100% to 180% 10% to 17% (1) The Company is assuming 150 million weighted average diluted shares and an effective tax rate of approximately 28% for the full year 2020. INOV Investor Presentation (8.20) v 1.0.3 31#32Q3 2020 Financial Guidance Inovalon provided Q3 2020 guidance as provided below, indicating 5% to 11% year-over-year organic revenue growth. Financial Metric Revenue Net Income 1 Non-GAAP net income1 Adjusted EBITDA Diluted Net Income Per Share1 Non-GAAP diluted net income per share1 (1) The Company is assuming 150 million weighted average diluted shares and an effective tax rate of approximately 28% for the full year 2020. INOV Investor Presentation (8.20) v 1.0.3 Q3 2020 Financial Guidance $175 million to $185 million $7 million to $8 million $25 million to $26 million $61 million to $65 million $0.05 to $0.05 $0.16 to $0.18 32#33Contents 1 Overview of Inovalon 2 Market Opportunity 3 Financials INOV Investor Presentation (8.20) v 1.0.3 Conclusion 5 Appendix 33#34Meaningful Strength.... Inovalon has experienced a significant inflection, with increases in platform patient counts, client retention rates, sales, and profitability - all with strong market differentiation within a large and expanding market opportunity. * All numbers refer to 2020 guidance provided by the Company July 29, 2020. Market Leadership as the industry's largest cloud-based provider of data- driven solutions to the healthcare ecosystem with primary-source datasets of >319M Patients Significant Profitability of $226M to $236M Adjusted EBITDA, or a 34% Adjusted EBITDA Margin Strong Subscription-based Revenue Growth 11%-15% Year over year increase Operating Cash Flow of $160M to $175M A year over year increase of 50% to 64% INOV Investor Presentation (8.20) v 1.0.3 34#35Comparable Valuations The following is provided for comparable valuation convenience purposes. 35.7x 27.6x 19.5x 18.7x 13.7x 8.7x 6.5x 6.5x 4.5x 4.3x 4.0x 3.8x 2.8x 2.4x 1.8x Livongo Health LVGO Veeva Systems VEEV Teladoc ServiceNow Splunk Health NOW TDOC SPLK IHS Markit INFO Health Catalyst HCAT Inovalon INOV Tabula Rasa TRHC HMS HMSY Cerner CERN IQVIA IQV Change Healthcare CHNG Health Stream Benefitfocus HSTM BNFT 1147.4x Revenue Multiple FY20 221.8x 73.3x 60.2x 32.2x 20.3x 19.3x 18.0x 16.8x 16.4x 13.5x 12.8x 9.7x NMF NMF Splunk SPLK Teladoc Health TDOC Veeva Systems VEEV ServiceNow NOW Tabula Rasa TRHC IHS Markit INFO Inovalon INOV IQVIA IQV Benefitfocus BNFT HMS HMSY Healthstream HSTM Cerner CERN Change Health Healthcare Catalyst CHNG HCAT Livongo Health LVGO NMF: Not meaningful. Source: NASDAQ IR Insight as of after-close on July 31, 2020 INOV Investor Presentation (8.20) v 1.0.3 EBITDA Multiple FY20 35#36Contents 1 Overview of Inovalon 2 Market Opportunity 3 Financials INOV Investor Presentation (8.20) v 1.0.3 4 Conclusion 5 Appendix Case Studies & Recently Launched Solutions Reconciliations & Definitions 36#37Case Studies & Recently Launched Solutions INOV Investor Presentation (8.20) v 1.0.3 37#38Providing Cloud-Based Tools That Empower Data-Driven Healthcare For Payers... For Providers... For Pharmacy Organizations... G Operational Transparency Clinical Quality Metrics Q 87 Quality of Care Point-of-Care Analytics Automate Referrals H For Life Sciences Companies... $ Reduce Operational Costs Health Economics Optimal Treatment and Outcomes Research Protocols 101010 010101 101010 +11 Risk Score Accuracy Patient Engagement $ billl Administrative Clinical Operational Improvement Efficiency Streamline Order Workflow Improve Patient Care Commercialization Strategies Outcomes-Based Contracting $ Patient Outcomes Financial Performance Patient Outcomes Provider Engagement Medical Claims Processing Patient Market Outcomes Access Payer Operations INOV Investor Presentation (8.20) v 1.0.3 38#39The Inovalon ONE® Platform Inovalon provides its solutions through the Inovalon ONE® Platform: an integrated, cloud-based platform of nearly 100 individual proprietary toolsets, or "Modules", able to be rapidly configured to empower the operationalization of very large-scale data-driven healthcare initiatives that are highly differentiated, efficient, modular, and flexible. 0010100 0100000 11010001 11100000 00000101 Point-Of-Care Venue..... Coordination Employer Settings 0111010 Connectivity & Integration Data Warehouse Interconnectivity Toolset EHR & HIE Interoperability Toolset Enterprise Interface & Streaming Toolset iPORT™ & iPORT-HDTM Integration Toolset Remote Data Monitoring Toolset Unstructured Data Conversion (DCD) Toolset 11101000 11101010 Analytical Algorithms & Engines 01010010 0100100 00000000 11101100 10100100 10100100 Clinical Care Protocol Analytics Clinical Care Venue Determination Analytics Clinical Quality Outcomes Analytics Comparative Benchmarking Analytics Cost & Utilization Analytics Data Integrity Analysis De-Identification/Anonymization Algorithm Disease Burden & Risk Score Analytics 10100100 H Ambulatory/Outpatient Care Settings Stable Health Settings Acute/Inpatient Care Settings +HOSPITAL- UTI9100 Real World Intervention / Point-Of-Care Solutions Authorization Coordination & Validation Solution Call & Fulfillment Center Solution (ITCCTM) Clinical Encounter Coordination Solution Clinical Encounter Support Solution (ePASS®) EHR Interfacing Solution 1110110 Post-Acute Care Settings In-Home Care Settings 1010010 ||IUTIUUT|101000101 |10100100111000011010010 Management & Administration Consoles 010101 • Patient & Provider Enrollment Solution Patient Portal Solution • Provider Portal Solution " Analytic Protocol Editor 00111 Clinical Template Editor 001001 Data Integration Client Cloud Access Interface Medical Record Abstraction Solution (SAFHIRE™) Mobile/SMS/eMail Interaction Solution • Real-Time Data Monitoring & Surveillance Solution Real-Time On-Demand Insights Solution (DDX™M) Telemedicine Solution Intervention Planning Interface 001001 Scenario Configuration Editor 000000 Specialty Pharmacy Interface 101100 : 00100 Data Visualization & Reporting 010101 • Financial Performance Analytics • Predictive Quality Analytics (PQISTM) Toolset + Care Reporting Financial Reporting 100011 • • Medication Compliance/Persistence Analytics NLP/ML Toolset • Operational Logistical Coordination Analytics Quality Spectrum Flowchart Designer (QSFD®) Toolset Quality Spectrum Insight Compute Engine (QSI® & QSI-XLTM) Toolset Contract Administration • Reporting Operational Reporting 000000 • Outreach Strategy 001010 Demographic • Quality Reporting . Patient & Provider Behavior Analytics Patient Identification Analytics . Predictive Clinical Analytics (PCIS™) Toolset Master Comparative Data Warehouse MORE² Registry Data Socioeconomic (SES) Data Regulatory Data Generation Toolset Scenario Modeling & Comparative Analysis Treatment Effectiveness Analytics Unique Identifier Determination Analytics (MPI/MDM) Support Services Platform Clinical Support Help Desk Platform Program Client Support Reporting • Regulatory Reporting 010001 Disease & Risk Reporting Utilization Reporting 10001 10001 010001 10000 Participating Organization Portfolio Support 10100 • Contract Performance Monitoring & + Platform Program Continuous Improvement Processes Platform Program Discovery Processes Administration Platform Program Performance Evaluation Processes Platform Technical Support Help Desk • Organization-Specific Data Warehouse Connectivity Organization-Specific Reporting Support 11000 00001 11010 10100100 01101001 01101001 00000000 01011101 00110100 01010101 0100101010 Data Foundation Master Platform Data Warehouse Master Care & Case Management Data Master Claims Data Master Clinical Data Master Device & Monitoring Data Master Diagnostics Data Master Employer Data Master Facilities Data Master Financial Data Master Operations Data Master Patient Data Master Payer Data Master Pharmacy Data Master Provider Data Master Referential Data INOV Investor Presentation (8.20) v 1.0.3 39#40Payer Platform Offering Example For payer clients utilizing Inovalon's clinical quality analysis and improvement solutions, sophisticated analytics identify patients with meaningful quality gaps, while connectivity into EHRs, decision support platforms, and data-driven intervention platforms empower their improvement. The result is greater quality scores and significant incentive payment benefits with strong ROIs. Regional Health Plan 140K Members Year 1 | Year 2 | Year 3 | Year 4 Inovalon Engagement 1 QBP Equation: 140K members x incremental $44.64 per patient per month quality bonus payment for 12 months INOV Investor Presentation (8.20) v 1.0.3 $75M * Quality Bonus Payment Recieved 1 Quality bonuses received by the health plan equates to an incremental payment to the plan $10M Inovalon Cost ROI = 7.5:1 40 40#41Payer Platform Offering Example More than 50% of the nation's payment models are risk adjusted. For payer clients utilizing Inovalon's risk score accuracy improvement solutions, sophisticated analytics identify patients with meaningful disease progression and gaps in diagnosis. documentation or submission, while connectivity into EHRs, NLP analysis of medical record data, decision support platforms, and data-driven intervention platforms empower the proper identification, clinical assessment, documentation and improvement of this important information and its submission to state and federal programs. The result is greater patient disease awareness, risk score. data precision, and meaningful improvements into financial transparency and payment accuracy with strong ROIs. Combined Medicare & Medicaid Risk Score Accuracy Improvement Impact, Cost, and ROI Millions $600 $500 $400 $300 $200 $100 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Actual Cost Medicare Actual Cost Medicaid Projected Cost ■Risk Score Accuracy Improvement Impact Medicare ■Risk Score Accuracy Improvement Impact Medicaid 1 ROI referenced to Year 9 Payment Year INOV Investor Presentation (8.20) v 1.0.3 ROI = 9.7: 11 Projected Risk Score Accuracy Improvement Impact Medicare Projected Risk Score Accuracy Improvement Impact Medicaid 41#42Provider Platform Offering Example Over 41,000 provider sites utilize Inovalon's myABILITYⓇ Platform to improve the quality of care, workforce efficiency, and many elements of financial performance within their acute, post-acute, and ambulatory facilities. Through the utilization of a portfolio of toolsets, providers improve their operational efficiency, reimbursement accuracy, and strength of cash flow, positioning them for success in this challenging environment. Increased Revenue Capture Improved Monthly Cash Flow 5.0% Small to Mid-Sized $144,031 $1,188,287 Hospital² Increased Revenue Capture1 Post-Acute Facility Per Physician $17,210 $373 $139,564 $3,080 2.44 1 Based on MGMA denial benchmarks, April 2018 2 Based on Definitive Health, Average Annual Revenue Hospitals 25-238 Beds * Results based on the utilization of the myABILITYⓇ EASE All-Payer portfolio solution INOV Investor Presentation (8.20) v 1.0.3 Delivering 99.0% First Pass Approval Claims Rate ROI = DSO Improvement 8.9: 1 42#43Pharmacy Platform Offering Example Inovalon's ScriptMed® Cloud empowers a 15% to 17% reduction in cost to serve per script versus current industry-standard enterprise platform solutions supporting the Specialty Pharmacy marketplace. Applied to an industry benchmark of $60.15 per specialty pharmacy script, this reduction translates into approximately $9.02 to $10.21 in savings per fill. In the setting of a specialty pharmacy processing 1 million scripts per year, this accumulates to approximately $9.0 to $10.2 million in savings per year. Referral Referral cost reduction of 9.7% from: Auto data prefilling reducing time and costs vs. manual entry Improved data accuracy reducing error correction time and process delays Automation reducing labor Electronic connections replacing phone and fax time and costs ㅏ Reduced Cost to Serve by 15% to 17% Cost to Serve Clinical Order Fulfillment Revenue Cycle Contracts Inventory Overhead INOV Investor Presentation (8.20) v 1.0.3 . . Clinical cost reduction of 4.9% from: Expanded data-driven clinical capabilities Direct-connect with EHRs Improved patient adherence Order cost reduction of 0.5% from: Lowered re-work rates Improved processing of order exceptions Fulfillment cost reduction of 0.5% from: Lowered re-work and return rates Optimization of shipping and routing RCM cost reduction of 0.5% from: Reduced labor and improved medical claims and payment processing Overhead cost reduction of 1.0% from: Operational & performance visibility tools Simplified training, skill requirements, and job aids 15% to 17% Reduction in Cost to Serve 43#44Pharmaceutical Platform Offering Example For clients utilizing Inovalon's Outcomes-Based Contracting (OBC) Platform: payers benefit from reductions in overall costs; patients benefit from improved outcomes; providers benefit from support for their patients; and pharmaceutical manufacturers benefit from greater unit sales of their medications. While the cost of a medication by itself may be more expensive than an alternative or predecessor in the market, deep analysis of optimal patient identification and data-driven enablement of patient-specific monitoring and intervention support can result in significant overall cost reductions while also achieving superior clinical quality outcomes. Medication Cost Additional Medical Costs Market Standard State Total Healthcare Cost Reduction Achieved with Inovalon's OBC Platform Inovalon OBC Platform State 32.3% Total Healthcare Cost Reduction¹ 1 Study performed by Inovalon pharmaceutical manufacturer client. 134,599 patients on standard care vs. 2,122 patients on specified medication showing opportunity for PPPY improvement in setting of specific medication and adherence. Illustrative. INOV Investor Presentation (8.20) v 1.0.3 44#45Cloud-Based Healthcare Data Lake Offering On January 13, 2020, Inovalon announced the addition to its cloud-based solution offerings, a cloud-based healthcare data lake, with a five-year contract with a leading healthcare organization executed during Q4 2019. The cloud-based Healthcare Data Lake solution provides clients with an industry-leading single-source-of- truth data "superset" that aids clients in supporting advanced reporting, analytics initiatives, and other use cases that benefit from best practices data architecture, data comprehensiveness, and data hygiene, while also eliminating costs of traditional enterprise warehouse solutions and healthcare organization processes suffering from incomplete, untimely, or erroneous data. Client-Specific Inovalon & Commercial Cloud Cloud-Based Data Lake EHR Connectivity PX Payer Applications Provider Applications Pharmacy Applications Life Sciences Applications Data Enrichment Data Analytics (Traditional Methodologies, Machine Learning, Artificial Intelligence, Deep Learning) Shared Services Data Aggregation and Access Normalization & Curation Data Analysis & Visualization The MORE² RegistryⓇ • 319M Unique Patients Clinical encounter data (EHR/HIE) Demographic ⚫ Enrollment data . Diagnoses data I data . Procedure data | 56B Medical Events 1,005,000 Physicians Socioeconomic . Pharmacy data | data 559,000 Clinical Facilities iPORT HD Custom-Specific Data Stores TM Medical and lab claims data . I Laboratory results data Predictive population data INOV Investor Presentation (8.20) v 1.0.3 三 Client Interactive Connectivity Application Connectivity Data exchange 45#46Cloud-Based Telehealth Offering On March 23, 2020, Inovalon announced the addition of telehealth capabilities within its cloud-based Inovalon ONE® Platform offering. Unlike other telehealth offerings within the marketplace, Inovalon's capabilities enable clients to perform patient-specific data-driven and analytically informed virtual healthcare encounters, resulting in greater call-time efficiency, effectiveness, patient experience, and overall value impact. CLIENT + CLINICIAN PATIENT B 1101001001110100011010010011101000110100100111100010101110110000111 1001001110100011010010011101000110100100111100010101110110000111 01001110100011010010011101000110100100111100010101110110000111 100111010001101001001110100011010100111100010101110110000111 1110100011010010011101000110100100111100010101110110000111 100011010010011101000110100100111100010101110110000111 100011010010011101000110100100111100010101110110000111 חון ↑↓ Inovalon Telehealth An offering of the Inovalon ONE® Platform 1001110100011010010011101000110100100111010001101001001110 1001110100011010010011101000110100100111010001101001001 100111010001101001001110100011010010011101000110100100 10011101000110100100111010001101001001110100011010 1001110100011010010011101000110100100111010001101 100111010001101001001110100011010010011101000 100111010001101001001110100011010010011101000 INOV Investor Presentation (8.20) v 1.0.3 MORE² RegistryⓇ ↑↓ Analytics 46#47TM Consumer Health Gateway T On May 21, 2020 Inovalon launched the Consumer Health Gateway TM, a cloud-based Fast Healthcare Interoperability Resources (FHIRⓇ)- enabled Module of the Inovalon ONE® Platform that enables health plans with Medicare Advantage, Commercial ACA and Medicaid/CHIP insurance products to easily and efficiently comply with the new Patient Access Application Program Interface (API) requirement of the 21st Century Cures Act, ahead of the implementation deadline of July 1, 2021, while also paving the way for applications empowering consumers to access and benefit from their own personal healthcare data in real time. Inovalon's Consumer Health Gateway™ Enabled Through the Inovalon ONE® Platform Consumer סרסוס 000 102 Patient Access API 1001110100 0001110100- 001110100 01010 10101 01010 Provider Directory API 10100110111010001 00110100100111010001101001001110100011010010011101 001110100011010010011 011010010011101000110FHIR® Based 10100100 1010010 001110111010001 API Gateway 1010010 Payer to Payer Data Exchange 00111010001010 10010100100 011101000110100100111010001101001001110 Claims Clinical Provider Payer (CPCDS) (USCDI) History API Application & Consent Module Application Authentication Consumer Validation Health Plan 100010101101100001 0001010111011000 101011101 1011101 1011101 01011101||| _0101011101100 * Provided for illustrative purposes only INOV Investor Presentation (8.20) v 1.0.3 ✓ Secure, extensible infrastructure Real-time API Response ✓ CMS Compliant (FHIR® 4.0, CPCDS, USCDI) 47#48Infection Watch TM On May 27, 2020 Inovalon launched Infection Watch TM for the provider marketplace, a cloud-based infection control and antibiotic stewardship Module within the Inovalon ONE® Platform. Timely infection outbreak management requires real-time actionable data that can empower skilled nursing providers with early recognition, ability to isolate the situation, manage outcomes and control the processes to improve clinical outcomes of their residents and meet regulatory compliance, which is even more important now in the time of the COVID-19 pandemic. Importance of Infection Prevention and Control Residents in Skilled Nursing Facilities are As more vulnerable to infections due to changes in their health Infection transmission from resident to resident with all residents living closely together • Need to meet regulatory requirements to mitigate monetary penalties and closures . State mandated reporting of infections Survey preparedness . Mandated performance measures . COVID-19 weekly reporting Controlling Investigating Prevention SKILLED NURSING FACILITIES Residents Staff/Volunteers Visitors Identification Reporting InfectionWatch TM Improve infection control processes Effectively manage quality processes Track and trend infections and antimicrobial resistance patterns Real-time alerts on outbreaks and trends ✓ Full regulatory compliance INOV Investor Presentation (8.20) v 1.0.3 CMS requires all Skilled Nursing Facilities to have a System for Infection Control 48#49Differentiated Capabilities for Life Sciences Life Sciences Strategy Clinical Analytics Health Plan Operations Subject Matter Expertise Outcomes Research Clinical Decision Support Healthcare Economics Reimbursement & Revenue Cycle Clinical Interoperability Pharmacy Market Access Predictive Analytics Technical Architecture Large-Scale Real-World MORE² RegistryⓇ Data Registry Leveraging Inovalon's massive data assets, deep subject matter expertise, and the advanced technologies of the Inovalon ONE® Platform, life sciences clients benefit from not only data empowered advisory services able to inform strategy and commercialization, but also inform the configuration of Inovalon ONE® Platform configurations that support outcomes-based contracting, improved compliance and persistence, and advanced business models. 319 Million Patients Massive INOV Investor Presentation (8.20) v 1.0.3 56 Billion Clinical Events + 1,005,000 Physicians 559,000 Clinical Facilities 010100 10101001 0101000 0101000 Advanced Technologies Platform 1010100 0010001 0011 001 a MC Data Assets Advanced Analytics Intervention Toolsets Data Visualization 49#50Reconciliations & Definitions INOV Investor Presentation (8.20) v 1.0.3 50 50#51Reconciliation of Forward-Looking Guidance Adjusted EBITDA Inovalon defines Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) as net income or loss calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, other expense, net, interest income, interest expense, provision for income taxes, stock-based compensation, acquisition costs, restructuring expense, and other non-comparable items. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. A reconciliation of net income to Adjusted EBITDA follows: (In millions) Reconciliation of Forward-Looking Guidance Net (loss) income to Adjusted EBITDA: Net (loss) income Depreciation and amortization Interest expense Interest income Provision for income taxes EBITDA Stock-based compensation Acquisition costs: Integration costs (1) Other non-comparable items Adjusted EBITDA Adjusted EBITDA margin EA Guidance Range Three Months Ending Year Ending September 30, 2020 Low High December 31, 2020 Low High 7 $ 8 $ 15 $ 21 29 30 116 116 14 14 57 58 (1) (1) 3 4 4 53 56 189 198 8 8 31 31 1 1 1 5 6 $ 61 $ 65 $ 226 $ 236 34.9% 35.2% 33.5% 33.8% 51 (2) Other "non-comparable items" include items that are not comparable across reporting periods or items that do not otherwise relate to the Company's ongoing financial results, such as certain employee related expenses attributable to advancements in automation and operational efficiencies, and legal expenses beyond those in the normal course of business. Non-comparable items are excluded from Adjusted EBITDA in order to more effectively assess the Company's period over period and ongoing operating performance. (1) A 28% statutory tax rate is assumed in order to approximate the Company's effective corporate tax rate for future periods. INOV Investor Presentation (8.20) v 1.0.3#52Reconciliation of Forward-Looking Guidance Non-GAAP Net Income Inovalon defines Non-GAAP net income as net income or loss calculated in accordance with GAAP, adjusted to exclude tax-affected stock-based compensation expense, acquisition costs, restructuring expense, amortization of acquired intangible assets, amortization of debt issuance costs and debt discount, and other non-comparable items. The Company defines Non-GAAP diluted net income per share as Non-GAAP net income divided by diluted weighted average shares outstanding. A reconciliation of net income to Non-GAAP net income follows: (In millions, except per share amounts) Reconciliation of Forward-Looking Guidance Net income to Non-GAAP net income: Net income Stock-based compensation Acquisition costs: Integration costs Amortization of acquired intangible assets Amortization of debt issuance costs and debt discount Other non-comparable items Tax impact of add-back items (1) (2) Non-GAAP net income GAAP diluted net income per share Non-GAAP diluted net income per share Weighted average shares of common stock outstanding - diluted Guidance Range Year Ending December 31, 2020 Low High Three Months Ending September 30, 2020 Low High $ EA 7 8 EA 88 $ 15 21 31 31 1 14 14 55 55 1 4 1 5 1546 (5) (6) (26) (27) $ 25 $ 26 $ 85 $ 91 $ 0.05 $ 0.05 $ 0.10 0.14 $ 0.16 $ 0.18 $ 0.57 $ 150 150 150 0.61 150 (1) Other "non-comparable items" include items that are not comparable across reporting periods or items that do not otherwise relate to the Company's ongoing financial results, such as certain employee related expenses attributable to advancements in automation and operational efficiencies, and legal expenses beyond those in the normal course of business. Non-comparable items are excluded from Non-GAAP net income in order to more effectively assess the Company's period over period and ongoing operating performance. (2) 28% statutory tax rate is assumed in order to approximate the Company's effective corporate tax rate for future periods. INOV Investor Presentation (8.20) v 1.0.3 52 52#53Definitions 1. Annual Recurring Revenue is defined as subscription-based revenue from existing clients plus outstanding intra-year renewals valued at an amount agreed upon in principal. 2. Annual Revenue Retention is defined as the percentage of revenue from engagements with existing clients in the prior year present in the current year. For example, Annual Revenue Retention would be less than 100% if there was a net loss of revenue from existing clients who either downsized or exited existing engagements, and would be more than 100% if on a net basis existing clients expanded existing engagements. 3. Annualized Contract Value (ACV) is defined as a metric reflecting the sum of the first 12 months of revenue expected from contracts signed during a specific period (such as a quarter or year). New sales ACV refers to the sum of the first 12 months of revenue expected from new sales contracts signed during a specific period (such as a quarter or year). 4. Coverage is defined as the sum of Annual Recurring Revenue, Legacy revenue under contract, and expected Services revenue, divided by the specified year's revenue guidance. INOV Investor Presentation (8.20) v 1.0.3 53#54ACV, TCV and Bookings Inovalon's sales have significantly expanded and accelerated, supporting strong growth going forward. The Company started reporting its sales performance in 2018 by providing new sales Annual Contract Value (ACV) data, a metric reflecting the sum of the first 12 months of revenue expected from new contracts signed during a specific period (such as a quarter or year). Inovalon first reported this metric with the release of Inovalon's Q3 2018 results on November 7, 2018. Of note, due to the fact that the bulk of the Company's contracts (also referred to as a "Statements of Work" or "SOWs") are multi-year in their contracted term (or contracted duration), the "bookings" or "Total Contract Value" (TCV) pertaining to the ACV is significantly larger than the ACV. For example, if the ACV for a period was $X, the corresponding total Bookings or TCV of the underlying sales would be perhaps $2X to $3X, depending on the average contract term signed within the group of underlying sales in the period. Importantly, while the Company is providing ACV sales data to provide insight into the accelerated nature of the Company's sales in a comparable (e.g., year-over-year) fashion, the corresponding total sales, bookings, or TCV is even more significant. ACV * Contracts depicted are Illustrative only to support discussion of ACV Executed SOWS 12 Months Illustrative only. Please see definitions on slide 53. INOV Investor Presentation (8.20) v 1.0.3 36 Months Etc. 24 Months Initial Contract / SOW Term Illustrative Dollar Equivalency 54 54#55inovalon Healthcare EmpoweredⓇ © 2020 by Inovalon. All rights reserved.