Inovalon Results Presentation Deck slide image

Inovalon Results Presentation Deck

Adjusting for Non-comparable G&A General and administrative expenses increased $13.6M in Q1 2018 as compared to Q1 2017. The increase was driven by $4.8M in non- comparable items that do not otherwise relate to Inovalon's ongoing performance, $4.4M in acquired G&A associated with the CCS acquisition, and $4.3M in combined employee-related and professional fees associated with the Inovalon ONETM Platform development, launch, and associated data center expansions. Additionally, certain G&A expense synergies have been implemented and achieved in Q1 2018 reducing expenses by approximately $2.5M on average per quarter going forward. Normalized for certain non-comparable or one-time expenses, Inovalon's quarterly G&A expense is expected to range between $40M to $44M during the three remaining quarters of 2018 excluding G&A related to the acquisition of ABILITY, and $49M to $53M including ABILITY. Non-Comparable or One-Time Expenses $35.8 $3.2 Q1 2017 Employes-Related Professional Actual Expenses Acquired GMA Tranestion INOV Q1 2018 Earnings Supplement (5.8.18) v 1.0.0 IPO Levit Legal Foo $0.6 Other Non-Recurring * Normalized G&A exdudes the impact from fair valus contingent consideration accration measurement. All numbers in milions, subject to rounding $49.4 01 2018 Actual ($4.8) ($2.5) One-Time Expensse Excluding ABILITY Non-Comparable Acquired GA Expense Synergy Pre-ABILITY $44.0 $40.0 Normalbad 02-04 2018 Quarterly Expense Excl. ABILITY™ $9.0 Quarterly ABILITY GAA Including ABILITY $53.0 $49.0 Normalized 02-04 2018 Quarterly Expen Ind. ABILITY™ 20
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