Inovalon Results Presentation Deck
2018 Revenue
Guidance Bridge
Inovalon continues to transition its business to
an increasingly subscription-based cloud-based
platform model.
At the same time, external market forces
related to the ACA that occurred in 2017 are a
short-term opposing force in 2018.
While the Company has signed significant new
and expanded business, the date of these
signings was later than initially projected.
This combination of factors in 2018 yields an
updated full-year revenue guidance of $525M
to $545M, or expected revenue expansion of
19% at the midpoint.
The graphic to the right is for illustrative purposes only.
INOV Q3 2018 Earnings Supplement (11.7.18) v1.0.0
Net Client Churn expected to be -5 points in 2018 (reflecting Annual Revenue
Retention of approximately 95%)
Client decisions in 2017 to withdraw from ACA markets, unrelated to the
efficacy of Inovalon services, is a short-term headwind of -8 points in 2018
Continued transition and expansion of Inovalon ONEĀ® Platform adoption is
seen driving new platform client sales of -4 points of growth in 2018
ABILITY acquisition expected to contribute 26 points of revenue growth
$449
SOOME
2017
Actual
Revenue
Full Year 2017 vs. 2018 Guidance
Revenue Growth of 19% at the Midpoint
-(5 pts)
Net
Client
Chum
-(8 pts)
Client
ACA
Withdrawals
4 pts
New
Client
Sales
- 2 pts
CCS
Acquisition
(in 2017)
-26 pts
ABILITY
Acquisition
$545
$525
2018
Revenue
Guidance
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