Inovalon Results Presentation Deck

Reconciliation of Forward-Looking Guidance Adjusted EBITDA Inovalon defines Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) as net income calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, realized losses on short-term investments, loss (gain) on disposal of equipment, interest expense, interest income, provision for income taxes, stock-based compensation, acquisition costs, tax on equity exercises, and other non-comparable items. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. A reconciliation of forward-looking preliminary net income guidance to forward-looking preliminary Adjusted EBITDA guidance follows: (In millions) Reconciliation of Forward-Looking Guidance Net Income to Adjusted EBITDA: Net (loss)/income Depreciation and amortization Interest expense Interest income Realized losses on short-term investments (Benefit)//provision for income taxes (1) EBITDA Stock-based compensation Acquisition costs: Transaction costs Integration costs Contingent consideration accretion Compensatory contingent consideration Other non-comparable items (2) Adjusted EBITDA Adjusted EBITDA Margin $ $ Guidance Range Twelve Months Ending December 31, 2018 High Low 86 49 (1) 1 (6) 116 20 5 9 6 2 5 163 28,7% $ S (5) 86 (1) + (3) 126 20 5 10 5 174 29.4% m A 30% tax rate is assumed in order to approximate the Company's offective corporate tax rate. Other "non-comparable items include items that are not comparable across reporting periods or items that do not otherwise relate to the Company's ongoing financial results, such as certain employee related expenses attributable to advancements in automation and operational efficiencies. Non-comparable items are excluded from Adjusted EBITDA in order to more effectively assess the Company's period over period and on going operating performance. INOV Q1 2018 Earnings Supplement (5,8,18) v 1.0.0 31

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