Inovalon Results Presentation Deck
Reconciliation
Non-GAAP Net Income
of Forward-Looking Guidance
Inovalon defines Non-GAAP net income as net income calculated in accordance with GAAP, adjusted to exclude tax-affected stock-based compensation expense,
acquisition costs, amortization of acquired intangible assets, tax on equity exercises and other non-comparable items. A reconciliation of forward-looking preliminary
net income to forward-looking preliminary Non-GAAP net income follows:
(In millions, except per share amounts)
Reconciliation of Forward-Looking Guidance Net Income to Non-GAAP net income:
Net (loss)/income
Stock-based compensation
Acquisition costs:
Transaction costs
Integration costs
Contingent consideration accretion
Compensatory contingent consideration
Amortization of acquired intangible assets
Other non-comparable items (1)
Tax impact of add-back items (2)
Non-GAAP net income
GAAP diluted net (loss Mincome per share
Non-GAAP diluted net income per share
Weighted average shares of common stock outstanding-diluted
44
INOV Q1 2018 Earnings Supplement (5,8,18) v 1.0.0
$
$
$
$
Guidance Range
Twelve Months Ending
December 31, 2018
High
Low
(13) $
20
5
9
6
2
36
5
(24)
46
(0.09)
0,32
146
$
$
(5)
20
5
10
6
2
36
5
(24)
55
(0.03)
0.38
146
Other "non-comparable items include items that are not comparable across reporting poriods or items that do not otherwise nalate to the Company's ongoing financial results, such as cortan employee related expenses attributable to advancements in automation and
operational efficiencies. Non-comparable items are excluded from Non-GAAP net income in order to more effectively assess the Company's penod over period and on going operating performance.
A 30% tax rate is assumed in order to approximate the Company's effective corporate tax rate.
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