Inovalon Results Presentation Deck

2018 Adjusted EBITDA Margin Bridge Inovalon continues to expect operating leverage, driven by further improvement in mix and pricing, benefit from technology-enabled efficiency initiatives, and contribution from ABILITY. The Company sees these factors driving -520 basis points of Adjusted EBITDA margin expansion in 2018. The graphic to the right is for illustrative purposes only. INOV Q3 2018 Earnings Supplement (11.7.18) v1.0.0 The full gross margin benefit of an increasing mix of higher SaaS Platform offerings, coupled with continued technology-enabled efficiencies and the ABILITY acquisition. Efficiencies being seen in gross margin are 1) being applied to continued investments in strategic areas for the Company, and 2) being allowed to flow to the bottom line, delivering enhanced profitability. 24.3% FY 2017 Adj. EBITDA Margin % -520 Basis Point Year-to-Year Improvement -120 bps Investment Initiatives -70 bps -150 bps Platform Mix & Price Changes Represents-220 bps of Gross Margin Expansion Y Excluding ABILITY. -550 bou Gross Margin Expansion P Including ABILITY -330 bps Platform Efficiencies ABILITY Platform Contribution -90 bps ABILITY Operating Contribution 29.5% FY 20180 Ad EBITDA Margin % 13

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