Inovalon Results Presentation Deck

2018 Adjusted EBITDA Margin Bridge inovalon Inovalon continues to expect operating leverage, driven by further improvement in mix and pricing, along with technology-enabled efficiency initiatives. The Company sees these driving 50 basis points of Adjusted EBITDA margin expansion in 2018. 24.3% FY 2017 Adj. EBITDA Margin % ~50 Basis Point Year-to-Year Improvement -20 bps Investment Initiatives / Overhead Efficiencies -10 bps Represents -30 bps of Gross Margin Expansion YtY Platform Mix & Price Changes -20 bps The above table is for illustrative purposes only. INOV Q4 2017 Earnings Presentation Supplement (2.20.18) v1.0.0 Platform Efficiencies 9 24.8% FY 2018G Adj. EBITDA Margin % The full gross margin benefit of an increasing mix of higher margin Platform offerings, coupled with continued technology efficiencies, is seen to be partially offset by one-time client ACA withdrawals Efficiencies achieved in overhead are expected to fully offset continued investments in strategic areas for the Company Ⓒ2018 by Inovalon. All rights reserved.

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