#1Q1 2020 Earnings Supplement April 29, 2020 O 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 second quarter and full year 2020, our ability to pay down outstanding indebtedness, expectations regarding interest payments and rates, expectations regarding tax rates, and statements with respect to visibility, revenue retention, recurring revenue, including ACV, 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 (CDEaaS™M), Natural Language Processing as a Service (NLPaaS™M), Elastic Container Technology (ECTTM), 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," in the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2020, filed with the SEC on April 29, 2020, including under Part II, Item IA, "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 March 31, 2020 unless stated otherwise. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 2#3Contents This presentation serves as a supplement to the Inovalon announcement on April 29, 2020 pertaining to first quarter (Q1) of 2020 results and guidance. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 1 2 3 Overview 2020 Q1 & TTM Financial Results 2020 Financial Guidance 4 Appendix 1: Reconciliations 3#4inovalon® 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 315 million patients and more than 55 billion medical events. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Payers KA +HOSPITAL Acute Providers Pharmacies Pharmaceuticals Devices 010100 0101001 0101000 0101000 BLOLLDA Massive Data Assets The Inovalon ONE® Platform Home Care SNF Hospice Post-Acute Providers 1010100 0010001 0011 001 Advanced Analytics Diagnostics Intervention Toolsets Ambulatory Providers Data Visualization 93 Patients#5Empowering 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 315M+ Patients 76K+ Provider Sites INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Alaska Hawaii KEY 10 100,000,000+ The MORE Registry medical events incidents = Connected Provider Client Sites Inovalon Headquarters = Office/Data Center Location Puerto Rico 5#6Executing on Strategy Inovalon's three strategy guideposts are Lead In Innovation, Become the Enablement Layer, and Land and Expand Efficiently. 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. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Inovalon 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 ™" 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. 01 6#7Cloud-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. 1 Clients/Partners = 1 I. Diagnosis, lab, procedure, and + $5 pharmacy claims Electronic Health Record (EHR) clinical data + Patient-reported data Demographic data Socioeconomic data Interactive Connectivity Application Connectivity Data Exchange Eligibility and Enrollment data DME usage data Lab results data + Provider data Facility census and staffing data Cost data INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 API Gateway Inovalon & Commercial Cloud RX Payer Provider Pharmacy Applications Applications Applications Data Analytics (Traditional Methodologies, Machine Learning, Artificial Intelligence, Deep Learning) Data Aggregation and Access ¡PORT HD™ Customer-Specific Data Stores Life Sciences Applications Shared Services The MORE² Registry® 315M Unique Patients 55B Medical Events W 994,000 Physicians 558,000 Clinical Facilities 7#8Massive Data Assets Inovalon leverages massive datasets to deliver differentiated capabilities to its clients. These datasets are expanding rapidly. As of the end of Q1 2020, the MORE² Registry® dataset contained more than 315 million unique patient counts and 55 billion medical event counts, increases of 16% and 23%, respectively, compared with March 31, 2019. One of the industry's largest independent healthcare datasets, with more than 315M patients and more than 55B 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 INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Medical Event Count (billions) 56 54 52 50 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 10 8 6 2 0 MORE2 REGISTRY® DATASET GROWTH Patient Count Medical Event Count 58% Medical Event Count Expansion (1Q17-1Q20 CAGR) H 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1020 320 300 280 260 240 220 200 180 160 140 100 80 160 40 20 0 8 Patient Count (millions)#9Benefits 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. 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 INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Informing Patient-Specific & Consumer Solutions Healthcare is moving in 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. DO 11010110 01101011 9#10Highly 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 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. 315M+ Patients INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 994K+ Providers MENTION FOT stopy 55B+ 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. 01 1111 1000010000111, 1011111119 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. 10#11Cloud-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 so INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 100111010001101001001110100011010010011101000110100100111 1001110100011010010011101000110100100111010001101001001 100111010001101001001110100011010010011101000110100100 10011101000110100100111010001101001001110100011010 1001110100011010010011101000110100100111010001101 100111010001101001001110100011010010011101000 100111010001101001001110100011010010011101000 ↑↓ Inovalon Telehealth An offering of the Inovalon ONE® Platform MORE² Registry ↑↓↓ PATIENT 11010010011101000110100100111010001101001001111000101 4 Analytics 1001001110100011010010011101000110100100111100010101110110000111 01001110100011010010011101000110100100111100010101110110000111 L00111010001101001001110100011010100111100010101110110000111 110100011010010011101000110100100111100010101110110000111 100011010010011101000110100100111100010101110110000111 100011010010011101000110100100111100010101110110000111 11#12Cloud-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. Payer Applications Inovalon & Commercial Cloud RX Provider Pharmacy Applications Applications Data Analytics (Traditional Methodologies, Machine Learning, Artificial Intelligence, Deep Learning) Shared Services w The MORE² RegistryⓇ 315M Unique Patients 55B Medical Events . 994,000 Physicians 558,000 Clinical Facilities. Life Sciences Applications Data Aggregation and Access INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 ODDE iPORT HD¹ Custom-Specific Data Stores TH Client-Specific Cloud-Based Data Lake EHR Connectivity Data Enrichment Normalization & Curation Data Analysis & Visualization Clinical encounter data (EHR/HIE) Demographic Socioeconomic data data Medical and lab claims data Enrollment data Diagnoses data Procedure data Pharmacy data . Laboratory results data Predictive population data | + Ⓡ= Client Interactive Connectivity Application Connectivity Data exchange 12#13Contents This presentation serves as a supplement to the Inovalon announcement on April 29, 2020 pertaining to first quarter (Q1) of 2020 results and guidance. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 1 2 3 Overview 2020 Q1 & TTM Financial Results 2020 Financial Guidance 4 Appendix 1: Reconciliations 13 CON#14Q1 2020 Financial Highlights During Q1 2020 Inovalon's revenue grew 6% year-over-year to $154.2 million, and subscription-based platform revenue grew 13% year-over-year to $137.1 million, representing 89% of Q1 2020 total revenue. Strong operational leverage resulted in Q1 2020 Adjusted EBITDA of $47.5 million, representing an Adjusted EBITDA margin of 31%. Non-GAAP EPS for the period was $0.11 per share, and cash and cash equivalents at the end of the quarter was $182.9 million. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Subscription-Based Platform Revenue of $137.1M Representing Revenue Growth of 13% year-over-year Adj EBITDA Growth to $47.5M Representing a 31% Adjusted EBITDA Margin Cash & Cash Equivalents Balance of $182.9M Non-GAAP EPS Growth of 10% $0.11 per share year-over-year to 14#15COVID-19 Planning, Response, and Impact Transition to Remote Operations: Inovalon leveraged and implemented its pandemic plan in February 2020 and quickly transitioned well to remote operations. Launch of Telehealth and Increased Demand for Connectivity: The Company accelerated its existing plans to launch data-driven and analytically-informed telehealth solutions to support clients navigating the pandemic. Demand for the telehealth offering has been strong. Capacity is in the early phases of ramping. Increased demand is also being seen for the Company's connectivity capabilities. Demand Delay for Some Services and Legacy Offerings: Revenue softness occurred in Inovalon's legacy and services offerings by approximately $4.5 million and $2.5 million, respectively, during the first quarter. This phenomena is expected to continue through the second quarter of 2020 and begin resolving thereafter. The Company believes that this represents demand delay (and not demand loss), with some portion expected to demonstrate characteristics of "catch-up" following the COVID-19 impact period. Sales Characteristics and Pipeline Strength: While a change in some sales characteristic is being seen, demand for Company capabilities has remained strong, with total pipeline at a record high since the launch of the Inovalon ONEⓇ® Platform. Big Picture and Summary: The Company has a highly favorable business model, with highly relevant offerings. The revenue impact from COVID-19 is believed to be both short-term in nature and have characteristics of being predominantly demand-delay (and not demand loss). Additionally, demand for the Company's capabilities and performance of the sales team continues to be strong expanding the Company's sales pipeline to record levels. Furthermore, through the broader market's period of challenge, Inovalon is remaining focused on investing in additional platform offerings, maintaining and even accelerating new product development and launch investments, while other organizations within the marketplace may be forced to decrease their investments in innovation and expansion. Altogether, while appreciating the number of variables and risks, the Company is rather optimistic about its ability to navigate the COVID-19 crisis period, and is even more optimistic about the Company's performance and growth prospects following the resolution of the COVID-19 crisis. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 15#16Continued Solid Sales Performance The Company continued to see strong demand during the first quarter. Total sales pipeline grew to a record high since the launch of the Inovalon ONE® Platform. Despite a degree of some demand delay, new sales were solid during the period. Q1 2020 total new sales Annual Contract Value¹ (ACV) was $45.5 million, with platform new sales, excluding Services, ACV totaling $29.0 million, reflecting an increase of 4% year-over-year. Total Quarterly New Sales ACV $33.0 $21.6 $39.0 $32.9 $27.3 $73.3 $58.9 $45.9$47.9 $54.8 $44.1 $73.5 $45.5 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 Note: Please see appendix for definitions of the footnoted terms above. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 $13.2 1 $11.3 Total Quarterly Platform New Sales ACV (Excluding Services) $26.0 $13.7 $6.2 $46.4 $62.8 $26.9 $27.8 $38.7 $28.1 $52.7 $29.0 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 16#17Continued 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 below graphics compare the resulting Q1 2020 TTM to Q1 2019 TTM for revenue, Adjusted EBITDA, Non-GAAP net income per share (EPS) and Operating Cash Flow generation. $580.4 Q1 2019 TTM Revenue 12% $651.1 Q1 2020 TTM INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Adjusted EBITDA $188.6 Q1 2019 TTM 13% $213.6 Q1 2020 TTM Non-GAAP EPS $0.39 Q1 2019 TTM 38% $0.54 Q1 2020 TTM Operating Cash Flow $98.3 Q1 2019 TTM 8% $105.8 Q1 2020 TTM 17#18Continued Salesforce Focus During the first quarter of 2020, Inovalon continued its focus on expanding the number, sophistication, and technology-lead nature of its salesforce and 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 = Sales Support Q1 2015 FTES = 15 ÎÎÎÎÎÎ Q1 2017 FTES = 79 t †††††††††† ††††††††† Q4 2018 FTES = 210+ 2015 2016 2017 Driven by Healthcare Subject Matter Experts Sales Leads Note: Figure intended to be illustrative INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 2018 iii Q1 2020 FTES = 255+ ††† 2020 2019 Driven by Technology Sales Leads 18#19Increasing Headcount Efficiency The Company's transition to higher-valued cloud-based offerings leveraging increased connectivity, software automation, SaaS- based, and subscription-based offerings has witnessed a substantial corresponding decrease in headcount while concurrently. expanding revenue and profitability. Reflecting this, headcount for the period year-end 2015 through Q1 2020 decreased by over 1,400, and TTM Adjusted EBITDA per headcount increased by 76% during the period. 3,323 TTM Q4 2015 Adjusted EBITDA Per Headcount of $45,628 Note: Acquisition of Avalere Health occurred prior to year-end 2015 Q4 2015 INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 20% Total Headcount Decrease From Year-End 2015 to TTM Q1 2020 774 Headcount Acquired 1,436 Headcount Efficiency 2,661 Q1 2020 76% Increase in TTM Q1 2020 Adjusted EBITDA Per Headcount of $80,280 * Total net decrease in headcount includes a gross increase of 774 headcount from acquisitions during the period, and gross headcount efficiency reductions of 1,436. 19#20Contents This presentation serves as a supplement to the Inovalon announcement on April 29, 2020 pertaining to first quarter (Q1) of 2020 results and guidance. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 1 2 3 4 Overview 2020 Q1 & TTM Financial Results 2020 Financial Guidance Appendix 1: Reconciliations 20#21Strong Subscription-Based Platform Adoption The graphic below illustrates the revenue offering mix, which includes the Company's revised 2020 guidance range as updated on April 29, 2020. 2016-2020G 26% Subscription-Based CAGR All numbers in millions. $427.6 12% 34% 54% 2016 $449.4 15% INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 19% 2017 Subscription-Based Platform Offerings 66% $527.7 11% 9% 80% 2018 Legacy Solutions $642.4 11% 6% 83% 2019 Services $672- $698 -10% -5% -85% 2020G 21#22Expected 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 April 29, 2020. IIII Q2 2019 Q1 2019 Note: Illustrative. Graphic drawn at midpoint of guidance range. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Q3 2019 Q4 2019 6% Q1 2020 YoY Organic Quarterly Revenue Growth 0% -4% Q2 2020 6% -12% Q3 2020 6% -12% Q4 2020 22#23Adjusted EBITDA The graphic below illustrates the Company's 2020 Adjusted EBITDA and Adjusted EBITDA margin guidance as updated on April 29, 2020. 23% 2016-2020G CAGR $100 23% 2016 $109 INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 24% 2017 $152 29% 2018 % of Revenue Note: CAGR calculations undertaken to the mid-point of 2020 Guidance. All numbers in millions. Graphic drawn at midpoint of guidance range. $211 33% 2019 $221 - $231 33% 2020G 23 SABINE#24Cash Flow From Operations The graphic below illustrates the Company's 2020 Cash Flow from Operations guidance as updated on April 29, 2020. $160 - $175² 16% 2016-2020G CAGR $93 22% $98 22% $1041 $90 17% 2018 % of Revenue $106 17% 2016 2017 Note: CAGR calculations undertaken the mid-point of 2020 Guidance. All numbers in millions. Graphic drawn at midpoint of guidance range "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. 22019 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 Q1 2020 Earnings Supplement (4.29.20) v1.0.1 24% 2019 2020G 24#25CAPEX 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 been seeing the capital investments of the Company returning back towards historical levels (as a percentage of revenue), and continues to see this occurring in 2020. $18.8 6% $13.2 $5.6 2013 $22.7 6% $20.2 2014 Maintenance Capital Expenditure $26.4 6% $25.2 $1.2 2015 $39.1 $7.8 9% $23.2 $8.1 2016 I Innovation Capital Expenditure (incl. Cap. Software) $65.5 $28.1 15% $28.5 $8.9 2017 ¹ Numbers as of the Company's update to 2020 guidance provided on April 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 Q1 2020 Earnings Supplement (4.29.20) v1.0.1 $65.0 $6.4 $45.8 12% $12.8 $58.9 $44.8 9% $14.1 2018 Inovalon ONE® Platform Buildout Capital Expenditure OFFER 2019 $54 - $60 ¹ 1 $40 - $45 8% -9% $14-$15 2020G % Of Revenue ING 25#26Covenant-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 69.0%, 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. 3.79x Current Senior Secured Net Debt Leverage Ratio¹ $0.0 2019 Revolving Facility Financial Covenant 7-to-1 Senior Secured Net Debt Leverage Ratio or lower Debt Maturity Profile ¹.² $9.8 2021 $9.8 $100.0 2022 2023 $9.8 $868.7 2024 $7.4 2020 Revolving Facility Term Facility 3 *All numbers in millions. As of March 31, 2020, ² Debt maturity includes all mandatory and fixed principal payments. 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%. * On March 14, 2020, the Company drew down its Revolving Facility. Since the Company's revolving facility is outstanding, 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 Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Interest Rate ³ 2025 69.0% of the debt Interest rate is fixed ³ $1,014.3 $314.3 Floating $700.0 5.26% Weighted Average Interest Rate Credit Facility Net Debt $831.4 Current 26#27Full Year 2020 Financial Guidance The Company is updating its full-year 2020 guidance based on the expected business impact from COVID-19. Financial Metric Revenue Net Income1¹ 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 | Updated 2020 Financial Guidance Guidance Originally Provided February 19, 2020 $698 million to $718 million $25 million to $31 million $89 million to $94 million $231 million to $241 million $170 million to $185 million $52 million to $58 million $0.17 to $0.21 $0.59 to $0.63 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 !!! The Company is assuming 150 million weighted average diluted shares and an effective tax rate of approximately 28% for the full year 2020. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 YOY Change 5% to 9% 105% to 182% 3% to 10% 5% to 10% 50% to 64% 120% to 200% 2% to 10% 27#28Q2 2020 Financial Guidance Inovalon is providing Q2 2020 guidance as provided below, indicating 0% to 4% 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 The Company is assuming 150 million weighted average diluted shares and an effective tax rate of approximately 28% for the full year 2020. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Q2 2020 Financial Guidance $157 million to $163 million $0 million to $2 million $16 million to $18 million $50 million to $52 million $0.00 to $0.01 $0.11 to $0.12 28#29Contents This presentation serves as a supplement to the Inovalon announcement on April 29, 2020 pertaining to first quarter (Q1) of 2020 results and guidance. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 1 2 3 4 Overview 2020 Q1 & TTM Financial Results 2020 Financial Guidance Appendix 1: Reconciliations 29#30Reconciliation 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 income to Adjusted EBITDA: Net income Depreciation and amortization Interest expense Interest income Provision for income taxes EBITDA Stock-based compensation (2) Other non-comparable items Adjusted EBITDA Adjusted EBITDA margin INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Three Months Ending June 30, 2020 Low High 28 14 TH 42 7 50 31.8% Guidance Range 69 2 28 14 44 7 52 31.9% Year Ending December 31, 2020 Low High 16 110 58 (1) 7 190 27 221 32.9% $ 22 110 59 (1) 199 28 4 231 33.1% A 28% statutory tax rate is assumed in order to approximate the Company's effective corporate tax rate. 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. 30#31Reconciliation Non-GAAP Net Income of Forward-Looking Guidance 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 Amortization of acquired intangible assets Amortization of debt issuance costs and debt discount Other non-comparable items Tax impact of add-back items (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 6A INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 Three Months Ending June 30, 2020 Low High 7 13 (6) 16 191 0.11 $ Guidance Range 150 2 7 13 1 1 (6) 18 0.01 0.12 150 60 Year Ending December 31, 2020 Low High 16 27 52 (23) 80 311 0.11 0.53 150 60 S 22 28 52 (25) 85 0.15 0.57 150 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. 28% statutory tax rate is assumed in order to approximate the Company's effective corporate tax rate. 31#32Definitions 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 Q1 2020 Earnings Supplement (4.29.20) v1.0.1 32#33ACV, 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. Executed SOWS ACV 12 Months Illustrative only. Please see definitions on slide 32. INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1 24 Months Initial Contract / SOW Term 36 Months * Contracts depicted are Illustrative only to support discussion of ACV Etc. Illustrative Dollar Equivalency 33 essant#34inovalon Healthcare Empowered Ⓒ2020 by Inovalon. All rights reserved.