Inovalon Results Presentation Deck
Reconciliation
Non-GAAP Net Income
Inovalon defines Non-GAAP net income as net income or loss calculated in accordance with GAAP, adjusted to exclude tax-affected stock-
based compensation expense, acquisition costs, restructuring expense, amortization of acquired intangible assets, tax on equity exercises,
and other non-comparable items. The Company defines Non-GAAP diluted net income per share as Non-GAAP net income divided by diluted
weighted average shares outstanding. A reconciliation of net income to Non-GAAP net income follows:
of Forward-Looking Guidance
(In millions, except per share amounts)
Reconciliation of Forward-Looking Guidance Net Income to Non-GAAP net income:
Net (loss Mincome
Stock-based compensation
Acquisition costs:
Transaction costs
Integration costs
Contingent consideration accretion
Compensatory contingent consideration
Amortization of acquired intangible assets
Restructuring expense
Other non-comparable items (1)
Tax impact of add-back items (2)
Non-GAAP net income
GAAP diluted net (loss)/income per share
Non-GAAP diluted net income per share
Weighted average shares of common stock outstanding - diluted
$
INOV Q2 2018 Earnings Supplement (8.1.18) v1.0.0
$
Guidance Range
Twelve Months Ending
December 31, 2018
High
Low
(24)
15
7
7
10
4
45
9
7
(30)
50
(0.16)
0.34
146
$
$
$
(18)
15
780449
10
45
7
(29)
(0.12)
0.40
146
Other "non-comparable items include items that are not comparable across reporting periods or items that do not otherwise relate to the Company's ongoing financial results, such as certain employee related expenses attributable to advancements in automation and
operational efficiencies, and legal expenses beyond those in the normal course of business. Non-comparable items are excluded from Adjusted EBITDA in order to more effectively assess the Company's period over period and ongoing operating performance
A 30% tax rate is assumed in order to approximate the Company's effective corporate tax rate.
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