Inovalon Results Presentation Deck
FY2018 Highlights
2018 marked a bookend of a period of transformation in which the Company experienced meaningful, positive inflection. A
multitude of dynamics have been navigated with Inovalon being increasingly recognized for meaningful market differentiation
and leadership, high-value cloud-based capabilities, operating leverage, and significant accelerating organic growth.
1. Strong Annual Recurring Revenue¹ Base: SaaS-enabled subscription-based revenue representing 80% of
total 2018 revenue
2. Strong Annual Revenue Retention² Rates: Client renewal and expansion performance up significantly,
resulting in an Annual Revenue Retention rate forecast from 2018 to 2019 of 103%
3. Strong Sales ACV Metrics: Strong market adoption with FY2018 Annualized Contract Value³ (ACV) sales
from new and expanded contracts, excluding ABILITY and Services, of $113.2 million (up 77% YoY), and
108 new logos signed (up 29% YoY)
4. Strong Margins & Cash Flow: Continued strong margin expansion of both gross margin (72.6%) and
Adjusted EBITDA margin (28.8%) in FY2018, and solid net cash from operating activities of $90.4 million
(inclusive of $43.6 million in interest payments)
5. Strong Revenue Coverage and Resulting Visibility: Strong Annual Recurring Revenue, Annual Revenue
Retention, and Annualized Contract Value sales are fueling revenue strong Coverage visibility of
approximately 96% for 2019 revenue Guidance
Note: Please see side 32 for definitions of the footnoted terms above
INOV Q4 & FY 2018 Earnings Supplement (2.20.19) v1.0.0
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