Inovalon Results Presentation Deck
Q1 2019 Highlights
Following an important period of meaningful transformation, Inovalon's cloud-based platform capabilities are increasingly
being recognized for their market leadership and differentiation, driving strong value-delivery for clients, and resulting in
significant sales expansion, revenue growth, operating leverage, and financial performance for the Company.
1. Strong Annual Recurring Revenue Base: SaaS-enabled subscription-based revenue representing 83% of
Q1 2019 revenue, up from 74% in Q1 2018.
2. Strong Organic Sales ACV Metrics: Strong market adoption with Q1 2019 Annualized Contract Value (ACV)
sales from new and expanded contracts, excluding ABILITY and Services, of $19.6 million (up 216% YoY),
with Q1 2019 Trailing Twelve Months (TTM) new ACV sales of $126.7 million (up 122% YoY).
3. Strong Margins: Strong Q1 2019 margin expansion of gross margin of 74.4%, a year-over-year increase of
1,050 basis points, and Adjusted EBITDA margin of 30.6%, a year-over-year increase of 2,210 basis points.
4. Strong Cash Flow: Strong net cash from operating activities of $14.8 million (inclusive of $15.6 million in
interest payments), a year-over-year increase of 115%.
5. Strong Q1 2019 TTM Results: Reflecting 12 months inclusive of the ABILITY acquisition and meaningful
transformation initiatives resulting in "Inovalon 2.0", Q1 2019 TTM performance provided revenue of $580.4
million (up 34% YoY), Adj. EBITDA of $188.6 million (up 105% YoY), Non-GAAP net income per share of
$0.39 (up 105% YoY), and Free Cash Flow¹ of $42.7 million (up 74% YoY).
Note: Please see slide 25 for definitions of the footnoted terms above.
*Free Cash Flow is defined as net cash provided by operating activities less purchases of property and equipment and less investment in capitalized software
INOV Q1 2019 Earnings Supplement (5.1.19) v.1.0.0
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