Inovalon Results Presentation Deck
CAPEX 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 substantially complete and is increasingly being harvested
through the successful engagement of clients for highly-differentiated platform offerings. As a result, the Company sees the capital investments
of the Company (inclusive of ABILITY) returning towards historical levels (as a percentage of revenue) in 2018 and 2019.
$18.8
6%
$13.2
$5.6
2013
$22.7
$20.2
2014
Maintenance Capital Expenditure
$26.4
INOV Q3 2018 Earnings Supplement (11.7.18) v1.0.0
6%
$25.2
2015
$39.1
$7.8
9%
$23.2
$8.1
2016
Innovation Capital Expenditure (incl. Cap. Software)
Capital Expenditure (CAPEX) is defined as the sum of Purchases of property and equipment and Investment in capitalized software. All numbers in milions.
$65.5
$28.1
15%
$28.5
$8.9
2017
Inclusive of ABILITY
$55 - $60
$6-$7
$36- $38
10% -11%
$13-$15
2018G
Inovalon ONE® Platform Buildout Capital Expenditure
$52-$58
$39-$44
$13-$14
2019G
% Of Revenue
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