Inovalon Results Presentation Deck
Reconciliation of Forward-Looking Guidance
Non-GAAP Net Income
inovalon
Inovalon defines Non-GAAP net income as net income calculated in accordance with GAAP, adjusted to exclude
tax-affected stock-based compensation expense, acquisition costs, amortization of acquired intangible assets,
tax on equity exercises and other non-comparable items. A reconciliation of net income to Non-GAAP net income
follows:
(In millions, except per share amounts)
Reconciliation of Forward-Looking Guidance Net Income to Non-GAAP net income:
Net income
Stock-based compensation
Acquisition costs:
Transaction costs
Contingent consideration
Amortization of acquired intangible assets
Other non-comparable items (1)
Tax impact of add-back items (2)
Non-GAAP net income
GAAP diluted net income per share
Non-GAAP diluted net income per share
Guidance Range
Twelve Months Ending
December 31, 2017
Low
High
(0)
$
$
$
$
20
10
2
8
14
4
(16)
42
0.13
0.28
$
$
$
$
24
11
2
तळ चुक
8
14
4
(16)
47
0.16
0.31
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 Non-GAAP net
income in order to more effectively assess the Company's period over period and on going operating performance.
(2)
A 40% tax rate is assumed in order to approximate the Company's effective corporate tax rate.
13
INOV Q4 2016 Earnings Presentation Supplemental (2.22.17) 1.0.0
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