Inovalon Results Presentation Deck
Adjusted EBITDA Margin Expansion
inovalon
Inovalon's investments in innovation are driving increased platform efficiency, while also
enabling the introduction of new platform products with higher margins. Altogether, these
forces are enabling a 50 to 150 basis point expansion in annual Adjusted EBITDA margin.
23.4%
50 to 150 Basis Point Year-to-Year Improvement
(200-500 bps)
FY2016
Adj. EBITDA
Margin %
The above table is for illustrative purposes only.
Investment
Initiatives
(200-400 bps)
300-600 bps
Unit
Price
Changes
Represents -450 bps of Gross Profit
Margin Expansion YEY
INOV Q4 2016 Earnings Presentation Supplemental (2.22.17) 1.0.0
200-400 bps
Platform
Mix
Changes
Platform
Efficiencies
23.9%
24.9%
FY 2017
Adj EBITDA
Margin%
10
Continued commitment to
investments in innovation, sales
capacity expansion and efficiency
initiatives
• Typical unit price changes more
than offset by an increasing mix of
higher margin platform products
Efficiency initiatives spanning
connectivity, automation and
integration drive strong operating
leverage yielding Gross Profit
Margin expansion of 450 bps YtY
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