Inovalon Results Presentation Deck

Q3 2017 - Continued Sequential Improvement inovalon Revenue (M) Growth Operating Leverage Continued Investment & Efficiency $108.3 64.7% $110.6 Q1 2017 Q2 2017 Q3 2017 Gross Margin $17.7 66.4% $115.9 Q1 2017 Q2 2017 Q3 2017 66.8% Investment in Innovation $21.9 $19.9 Q1 2017 Q2 2017 Q3 2017 Adj. EBITDA Margin² 23.0% Q1 2017 Q2 2017 33.1% Q1 2017 25.1% 1: Gross Margin defined as Revenue less Cost of Revenue, as a percentage of Revenue. 2: Adj. EBITDA Margin and G&A represent profit/expense as a percentage of Revenue. INOV Q3 2017 Earnings Presentation Supplement (11.1.17) v1.0.0 G&AⓇ 32.4% Q2 2017 26.6% Q3 2017 4 31.3% Q3 2017 H (@ # Strong market adoption of the Inovalon ONE™ Platform, evidenced by multi-year engagements with four national health plans, in addition to multiple state and regional players, driving 10.3% year-over-year growth Continued transition to subscription-based model contributing to strong Q3 sequential growth of 4.8%, accelerating from Q2 Further sequential gross margin expansion of 40 bps, driven by continued product mix improvement and technology-enabled efficiency initiatives Further sequential Adjusted EBITDA margin expansion of 150 bps while maintaining increased investments in innovation and sales & marketing Focus on overhead efficiency enabled G&A decrease of 110 bps sequentially (and 410 bps YoY) as a percent of revenue Continuing to invest in platform innovation including modularity, connectivity, compute power, and data visualization - to drive growth and differentiation Ⓒ2017 by Inovalon. All rights reserved.

View entire presentation