Inovalon Results Presentation Deck
Evolution of
Inovalon II
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Having faced a number of headwinds
after going public in 2015, Inovalon
leveraged its strong technology
foundation, cash flow, and balance sheet
to position the Company for strong
sustained growth as a leader in
empowering data-driven healthcare.
INOV Q3 2018 Earnings Supplement (11.7.18) v1.0.0
1. Accelerated Investment in Technology Innovation
Increasing capital investments from the historical rate of 6% of revenue (in
2013, 2014, and 2015) to a high of 15% in 2017, Inovalon:
a) Transitioned from an enterprise software platform offering to a cloud native
platform offering known as the Inovalon ONE® Platform;
b) Accelerated dataset expansion and platform connectivity growth; and
c) Accelerated real-time compute, analytics, NLP, and ML initiatives.
2. Undertook Targeted M&A
Executed on three material acquisitions achieving:
a) De-concentration of client base;
b) Diversification from Payers into Providers, Pharmacy, & Life Sciences; and
c) Vertical integration from large Payers, Providers, Pharmacy, and Life
Sciences organizations all the way down to the consumer's Point-of-Care.
3. Transitioned Contract Base to Cloud-Based, Subscription-Based
Engagements
With the average contract duration being approximately 3 years, Inovalon has
now transitioned more than 80% of its business to a subscription-based model
- suffering a short-term revenue impact in the process.
4. Focused on Highest Value Elements of Data-Driven Healthcare
Transitioned away from labor-intensive elements of Inovalon's earlier business
model to increasingly being pure SaaS-based.
5. Invested Heavily in Sales & Marketing
Increased Sales & Marketing from 2% of revenue in 2015 to nearly 8%.
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