Inovalon Results Presentation Deck

Q1 2017 Financial Highlights Growth Operating Leverage Continued Investment 110 105 95 90 70% 65% 55% 50% 8% 7% 5% 59.2% Gross Margin 1Q16 102.7 6.4% 1Q16 1016 Revenue ($M) Sales & Marketing +6% YOY as reported Bat YoY organically 64.7% 1017 7.0% 1017 20% 15% 10% 5% 108.3 1017 18.1% Adj. EBITDA Margin 23.0% 1016 11.3% 52M expected in 02 Outperformance 5.5% $103.2M, midpoint of guidance range Investment in Innovation 16.3% 5.8% 1017 7.2% # 1Q16 Research and development Capitalized software development and Research and development infrastructure investment 1017 inovalon Q1 revenue ahead of expectations, even adjusting for $2 million originally expected in Q2. Revenue of $108.3 million represents sequential organic growth of 13% (from Q4 2016). Investments in platform innovations, market differentiation, new business wins, and expanding client base across market adjacencies. Gaining market share - and talent - from competitors. Technology-enabled efficiencies, as well as favorable platform product mix, driving strong operating leverage. Higher gross margin and G&A efficiency support higher investment and also Adjusted EBITDA margin expansion. Continuing to invest in platform development, innovation, and sales capacity and capability expansion. Note: Gross Margin, Adj. EBITDA Margin, Sales & Marketing, and R&D represent profilexpense as a percentage of revenue. 1: Based upon full-year guidance and seasonality patterns as provided on February 22, 2017, 2: Gross Margin defined as Revenue less Cost of Revenue, as a percentage of Revenue. INOV 01 2017 Earnings Presentation Supplement (5.3.17) 1.0.0 4 © 2017 by Inovalon. All rights reserved

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