Inovalon Results Presentation Deck

Updated 2017 Adjusted EBITDA Margin Expansion inovalon Inovalon's investments in innovation are driving increased platform efficiencies, while also enabling the introduction of new platform offerings with higher margins. These forces are enabling an expected 100 to 200 basis point expansion in annual Adjusted EBITDA margin in 2017 before the impact of the acquisition of CCS. 100 to 200 Basis Point Year-to-Year Improvement 23.4% FY2016 Ad EBITDA Margin % (200- 400 bps) Investment Initiatives 200- 100 bps 400- 200 bps Represents -450 bps of Gross Margin Expansion YIY Platform Mix & Price Changes Platform Efficiencies The above table is for illustrative purposes only. INOV Q2 2017 Earnings Presentation Supplement (8.2.17) v1.0.0 FY 2017E AA ERITIDA Margin% Excl. 2017 YTD Acquisition (90 bps) CCS Acquisition 24.5% 23.5% FY 2017 E Adj. EBITDA 11 Margin% Incl. 2017 YTD Acquisition Continued commitment to investments in innovation, sales capacity expansion and efficiency initiatives. Increasing mix of higher margin platform products offset typical unit price changes. Technology-enabled efficiency initiatives spanning connectivity, automation and integration drive strong operating leverage yielding Gross Margin expansion of 450 bps YtY. Over the 2H 2017 integration period, the acquisition of CCS is seen to be a -90 bp headwind to Adjusted EBITDA margin. © 2017 by Inovalon. All rights reserved.

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