Inovalon Results Presentation Deck
Reconciliation
Non-GAAP Net Income
of Forward-Looking Guidance
Inovalon defines Non-GAAP net income as net income or loss calculated in accordance with GAAP, adjusted to exclude tax-affected stock-based
compensation expense, acquisition costs, restructuring expense, amortization of acquired intangible assets, amortization of debt issuance costs and debt
discount, tax on equity exercises, and other non-comparable items. The Company defines Non-GAAP diluted net income per share as Non-GAAP net
income divided by diluted weighted average shares outstanding. A reconciliation of net income to Non-GAAP net income follows:
Guidance Range
(In millions, except per share amounts)
Reconciliation of Forward-Looking Guidance Net (loss) income to Non-GAAP net income:
Net (loss) income
Stock-based compensation
Acquisition costs:
Transaction costs
Integration costs
Contingent consideration
Amortization of acquired intangible assets
Amortization of debt issuance costs and debt discount
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
Weighted average shares of common stock outstanding - diluted
$
INOV Q1 2019 Earnings Supplement (5.1.19) v.1.0.0
Three Months Ending
June 30, 2019
Low
(4)
1
1
13
1
13
(0.03)
0.09
148
69
$
High
6
1
1
13
1
1
(6)
16
(0.01)
0.11
148
69
Year Ending
December 31, 2019
Low
High
2 $
19
- 3-843
1
53
(23)
609
0.01
0.42
149
69
19
1
4
+
53
(24)
71
0.04
0.48
149
in 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, and legal expenses beyond those in the normal course of business. Non-comparable items are excluded from Non-GAAP net income in order to more effectively assess the Company's period over period and ongoing operating performance.
28% statutory tax rate is assumed in order to approximate the Company's effective corporate tax rate, along with the inclusion of a $0.6 million discrete tax benefit.
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