Inovalon Results Presentation Deck
COVID-19 Planning, Response, and Impact
Transition to Remote Operations: Inovalon leveraged and implemented its pandemic plan in February 2020 and quickly transitioned well to
remote operations.
Launch of Telehealth and Increased Demand for Connectivity: The Company accelerated its existing plans to launch data-driven and
analytically-informed telehealth solutions to support clients navigating the pandemic. Demand for the telehealth offering has been strong.
Capacity is in the early phases of ramping. Increased demand is also being seen for the Company's connectivity capabilities.
Demand Delay for Some Services and Legacy Offerings: Revenue softness occurred in Inovalon's legacy and services offerings by
approximately $4.5 million and $2.5 million, respectively, during the first quarter. This phenomena is expected to continue through the
second quarter of 2020 and begin resolving thereafter. The Company believes that this represents demand delay (and not demand loss),
with some portion expected to demonstrate characteristics of "catch-up" following the COVID-19 impact period.
Sales Characteristics and Pipeline Strength: While a change in some sales characteristic is being seen, demand for Company capabilities
has remained strong, with total pipeline at a record high since the launch of the Inovalon ONEⓇ® Platform.
Big Picture and Summary: The Company has a highly favorable business model, with highly relevant offerings. The revenue impact from
COVID-19 is believed to be both short-term in nature and have characteristics of being predominantly demand-delay (and not demand
loss). Additionally, demand for the Company's capabilities and performance of the sales team continues to be strong expanding the
Company's sales pipeline to record levels. Furthermore, through the broader market's period of challenge, Inovalon is remaining focused
on investing in additional platform offerings, maintaining and even accelerating new product development and launch investments, while
other organizations within the marketplace may be forced to decrease their investments in innovation and expansion. Altogether, while
appreciating the number of variables and risks, the Company is rather optimistic about its ability to navigate the COVID-19 crisis period,
and is even more optimistic about the Company's performance and growth prospects following the resolution of the COVID-19 crisis.
INOV Q1 2020 Earnings Supplement (4.29.20) v1.0.1
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