Inovalon Results Presentation Deck
Evolution of
Inovalon III
After three years of implementation, the
Company's multifaceted strategy has
positioned Inovalon for strong, sustained
growth as a highly differentiated, pure-
play leader in empowering data-driven
healthcare.
INOV Q3 2018 Earnings Supplement (11.7.18) v1.0.0
1. Capital Investment Amounts are Returning to His
Levels
After having increased capital investments from the historical rate of 6% of
revenue (in 2013, 2014, and 2015) to a high of 15% in 2017, Inovalon has
decreased CapEx to an expected run-rate of 8% to 9% of revenue.
2. Profitability Has Re-Expanded
With market-leading capabilities being brought to the marketplace and clients
experiencing strong, high ROI, value-added results, Inovalon is achieving:
a) Improved pricing-power in the marketplace;
b) Gross margin re-expansion to > 70%; and
c) Adjusted EBITDA margin re-expansion to > 30% despite significant
investments in technology, management, and Sales & Marketing.
3. Expanded Datasets, Connectivity, Analytical Prowess and
Technology Sophistication
With the heavy investments made on top of the Company's historical
foundation, the result has been a deepening of the Company's moats.
4. Significant De-Concentrating & Diversification of Client Base
The Company has gone from 100+ clients to 20,000+ in three years,
expanding from a Payer-focus, to a portfolio of Providers, Pharmacy, and Life
Sciences clients with the top 10 clients going from representing 76% of
revenue in 2014 to an expected approximately 44% in 2018.
5. Inovalon Being Adopted as Market-Leading Capabilities
Significant number of multi-year contracts being engaged with multiple
industry leaders to support critical elements of their respective businesses.
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