Inovalon Results Presentation Deck

Full Year 2016 Revised Revenue Guidance $296 2013 $362 2014 Revenue $437 2015 $470 - $490 2016 Revised Guidance All dollars shown in millions. INOV 02 2016 Eamings Presentation Supplement (8.3.16) v1.0.0 • + @ Growth Drivers inovalon As a result of our investment in an enhanced sales organization and advanced sales tools our sales pipeline is the largest it has ever been and is in excess of twice the size it was at the beginning of the year. We continue to innovate as evidenced by the expansion of our industry-leading portfolio of platform capabilities which most recently includes QSI-XLTM, Data DiagnosticsTM, the Post-Acute Care (PAC) Platform, the Life Sciences Stack, and Client Cloud Access. We continue to rapidly enter adjacent markets, including pharma and life sciences as evidenced by our expanded relationship with Bristol Myers Squibb, and the post-acute care market as evidenced by our expanded relationship with Kindred Health. Our capabilities enabling on demand, real-time analytics and data insights at the point of care, as best exemplified by Data Diagnostics™, provide market-changing opportunity. We continue to expand our automated connectivity capabilities as evidenced through our recent announcement with athenahealth and collaboration with Epic as well as regional EHR platforms such as Medent in New York. This will continue to allow us to improve data accessibility and efficiency which in turn drives greater differentiation and value to our clients and attracts new opportunities. Our industry-leading datasets and scale to compute continue to grow with the MORE? Registry growing to more than 11.7 billion medical events representing 20% growth over the prior year. Downward Pressures Although we are pleased with the development of our expanded sales capacity and the significant resulting growth in our sales pipeline, the process took longer than we originally anticipated. Thereby, the translation of sales pipeline into revenue is shifted further out in time than previously projected. 6 During the first half of the year we experienced an accelerated market pressure on one of our more mature platform offerings, retrospective risk score accuracy, known as CARA. This market pressure came in the form of clients evolving the way in which they wanted to purchase the platform capabilities. Accordingly, we have made additional investments in transforming this platform to a more advanced cloud-based platform and passed on certain concessions to clients driving our revenue and margins lower in the near term. © 2016 by Inovalon. All rights reserved.

View entire presentation