Inovalon (INOV) 10-K 23 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Feb. 17, 2017	Jun. 30, 2016
Entity Registrant Name	Inovalon Holdings, Inc.
Entity Central Index Key	1,619,954
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 856.6
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Class A Common
Entity Common Stock, Shares Outstanding		65,208,867
Class B Common
Entity Common Stock, Shares Outstanding		82,803,633

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 127,683	$ 114,034
Short-term investments	445,315	614,130
Accounts receivable (net of allowances of $3,782 and $1,022 at December 31, 2016 and 2015, respectively)	85,591	81,305
Prepaid expenses and other current assets	12,100	16,162
Income tax receivable	15,165	18,377
Total current assets	685,854	844,008
Non-current assets:
Property, equipment and capitalized software, net	76,420	65,031
Goodwill	184,557	137,733
Intangible assets, net	103,549	61,855
Other assets	2,964	4,250
Total assets	1,053,344	1,112,877
Current liabilities:
Accounts payable	16,474	21,136
Accrued compensation	15,211	13,538
Other current liabilities	9,468	11,444
Deferred revenue	11,850	5,507
Deferred rent	1,016	797
Credit facilities	30,000	15,000
Capital lease obligation	115	109
Total current liabilities	84,134	67,531
Non-current liabilities:
Credit facilities, less current portion	236,250	266,250
Capital lease obligation, less current portion	215	296
Deferred rent	1,457	2,446
Other liabilities	13,158
Deferred income taxes	34,553	37,198
Total liabilities	369,767	373,721
Commitments and contingencies (Note 10)
Stockholders' equity (deficit):
Common stock
Preferred stock, $0.0001 par value, 100,000,000 shares authorized, zero shares issued and outstanding at December 31, 2016 and 2015, respectively
Additional paid-in-capital	516,300	493,197
Retained earnings	274,087	247,540
Treasury stock, at cost, 7,508,985and zero shares at December 31, 2016 and 2015, respectively	(106,231)
Other comprehensive loss	(580)	(1,582)
Total stockholders' equity (deficit)	683,577	739,156
Total liabilities and stockholders' equity (deficit)	1,053,344	1,112,877
Class A Common
Stockholders' equity (deficit):
Common stock
Class B Common
Stockholders' equity (deficit):
Common stock	$ 1	$ 1

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, allowances
Accounts receivable, allowances (in dollars)	$ 3,782	$ 1,022
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized shares	900,000,000	900,000,000
Common stock, issued shares	0	0
Common stock, outstanding shares	0	0
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, Authorized shares	100,000,000	100,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Treasury stock
Treasury stock shares	7,508,985	0
Class A Common
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized shares	750,000,000	750,000,000
Common stock, issued shares	72,271,298	53,482,669
Common stock, outstanding shares	64,786,705	53,482,669
Class B Common
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized shares	150,000,000	150,000,000
Common stock, issued shares	83,303,628	98,230,363
Common stock, outstanding shares	83,303,628	98,230,363

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Operations
Revenue	$ 427,588	$ 437,271	$ 361,540
Expenses:
Cost of revenue	159,169	146,140	112,761
Sales and marketing	27,078	14,684	7,143
Research and development	29,148	22,329	23,130
General and administrative	137,275	115,029	88,565
Depreciation and amortization	37,284	22,633	19,880
Total operating expenses	389,954	320,815	251,479
Income from operations	37,634	116,456	110,061
Other income and (expenses):
Realized gains (losses) on short-term investments	4	(328)
Gain on disposal of equipment	534
Interest income	5,792	3,003	6
Interest expense	(5,065)	(4,420)	(1,336)
Income before taxes	38,899	114,711	108,731
Provision for income taxes	11,795	48,648	43,379
Net income	27,104	66,063	65,352
Net income attributable to common stockholders, basic and diluted	$ 26,943	$ 66,014	$ 65,352
Net income per share attributable to common stockholders, basic and diluted:
Basic net income per share (in dollars per share)	$ 0.18	$ 0.45	$ 0.50
Diluted net income per share (in dollars per share)	$ 0.18	$ 0.45	$ 0.49
Weighted average shares of common stock outstanding:
Basic (in shares)	150,048	145,745	130,770
Diluted (in shares)	150,955	148,275	133,289

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 10,054	$ 7,415	$ 2,894
Cost of revenue
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	483	164
Sales and marketing
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	613	173
Research and development
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	1,184	1,212
General and administrative
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 7,774	$ 5,866	$ 2,894

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Comprehensive Income
Net income	$ 27,104	$ 66,063	$ 65,352
Other comprehensive income (loss):
Realized (gains) losses on short-term investments reclassified from accumulated other comprehensive income, net of tax of $4 and $(139), respectively	(6)	191
Net change in unrealized gains and (losses) on available-for- sale investments, net of tax of $(682) and $1,269,respectively	1,008	(1,773)
Comprehensive income	$ 28,106	$ 64,481	$ 65,352

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Comprehensive Income
Realized losses on short-term investments reclassified from accumulated other comprehensive income, tax	$ 4	$ (139)
Net change in unrealized gains and (losses) on available-for-sale investments, tax	$ (682)	$ 1,269

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Class A CommonCommon Stock	Class A Common	Class B CommonCommon Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2013			$ 1		$ 107,553	$ 124,180		$ 231,734
Balance (in shares) at Dec. 31, 2013			134,641,780
Consolidated Statements of Stockholders' Equity (Deficit)
Repurchase of common stock for Treasury				$ (309,083)				(309,083)
Repurchase of common stock for Treasury (in shares)				(12,571,605)
Retirement of common/treasury stock				$ 9,066	(1,011)	(8,055)
Retirement of common / treasury stock (in shares)			(1,462,320)	1,462,320
Stock-based compensation expense					2,894			2,894
Exercise of stock options					720			720
Exercise of stock options (in shares)			186,970
Tax benefit from exercise of non-qualified stock options					409			409
Conversion Class B to Class A common stock (in shares)	11,109,285		(11,109,285)
Forfeiture of vested nonqualified stock options					(248)			(248)
Net income						65,352		65,352
Balance at Dec. 31, 2014			$ 1	$ (300,017)	110,317	181,477		(8,222)
Balance (in shares) at Dec. 31, 2014	11,109,285		122,257,145	(11,109,285)
Consolidated Statements of Stockholders' Equity (Deficit)
Issuance of common stock upon initial public offering, net of offering costs					359,170			359,170
Issuance of common stock upon initial public offering, net of offering costs (in shares)	14,255,518
Issuance of treasury stock upon initial public offering, net of offering costs				$ 300,017	(20,115)			279,902
Issuance of treasury stock upon initial public offering, net of offering costs (in shares)				11,109,285
Stock-based compensation expense					7,259			7,259
Stock-based compensation expense (in shares)	538,383		94,784
Issuance of common stock related to business combination					3,847			3,847
Issuance of common stock related to business combination (in shares)	235,737
Exercise of stock options					14,652			14,652
Exercise of stock options (in shares)			3,222,201
Tax benefit from exercise of non-qualified stock options					18,608			18,608
Conversion Class B to Class A common stock (in shares)	27,313,057		(27,313,057)
Issuance of shares for Employee Stock Purchase Plan					8			8
Issuance of shares for Employee Stock Purchase Plan (in shares)	30,689
Shares retired for settlement of employee taxes upon conversion of restricted stock units					(549)			(549)
Shares retired for settlement of employee taxes upon conversion of restricted stock units (in shares)			(30,710)
Other comprehensive loss							$ (1,582)	(1,582)
Net income						66,063		66,063
Balance at Dec. 31, 2015			$ 1		493,197	247,540	(1,582)	739,156
Balance (in shares) at Dec. 31, 2015	53,482,669		98,230,363
Consolidated Statements of Stockholders' Equity (Deficit)
Adjustment to adopt ASU 2016-09 | Accounting Standards Update 2016-09					757	(557)		200
Repurchase of common stock for Treasury		$ (106,200)		$ (106,231)				(106,231)
Repurchase of common stock for Treasury (in shares)		(7,508,985)		(7,508,985)
Stock-based compensation expense					9,914			9,914
Stock-based compensation expense (in shares)	2,453,593
Issuance of common stock related to business combination					7,764			7,764
Issuance of common stock related to business combination (in shares)	651,355
Exercise of stock options					6,200			6,200
Exercise of stock options (in shares)	660,156		158,753
Conversion Class B to Class A common stock (in shares)	15,085,488		(15,085,488)
Issuance of shares for Employee Stock Purchase Plan					(34)			(34)
Shares retired for settlement of employee taxes upon conversion of restricted stock units					(1,498)			(1,498)
Shares retired for settlement of employee taxes upon conversion of restricted stock units (in shares)	(61,963)
Other comprehensive loss							1,002	1,002
Net income						27,104		27,104
Balance at Dec. 31, 2016			$ 1	$ (106,231)	$ 516,300	$ 274,087	$ (580)	$ 683,577
Balance (in shares) at Dec. 31, 2016	72,271,298		83,303,628	(7,508,985)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 27,104	$ 66,063	$ 65,352
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	10,054	7,415	2,894
Depreciation	28,078	19,221	15,512
Amortization of intangibles	9,206	3,412	4,368
Amortization/accretion of premiums or discounts on short-term investments	3,163	2,212
Realized (gains) losses on short-term investments	(4)	328
Taxes for equity award issuances	127	697
Deferred income taxes	(1,740)	5,786	1,882
Excess tax benefits from share-based compensation		(18,608)
Loss on disposal of long-lived assets		52	197
Loss on impairment of long-lived assets	0	0	255
Gain on disposal of equipment	(534)
Bad debt expense	79
Changes in assets and liabilities:
Accounts receivable	4,683	(24,475)	(10,539)
Prepaid expenses and other current assets	(6,198)	(1,110)	(3,484)
Income taxes receivable	3,639	7,825	(2,025)
Other assets	4,071	(1,776)	(1,035)
Accounts payable	(3,463)	4,474	2,120
Accrued compensation	243	(6,178)	7,686
Other liabilities	11,185	2,788	1,314
Deferred rent	(770)	(575)	(357)
Deferred revenue	3,907	3	1,388
Net cash provided by operating activities	92,830	67,554	85,528
Cash flows from investing activities:
Acquisition, net of cash acquired of $861 and $4037, respectively	(88,509)	(114,718)
Escrow funding associated with acquisition		(7,875)
Purchases of short-term investments	(164,737)	(964,037)
Maturities and sales of short-term investments	332,073	344,653
Purchases of property and equipment	(19,360)	(6,486)	(7,518)
Investment in capitalized software	(19,668)	(19,951)	(15,164)
Proceeds from sale of property and equipment		94	63
Net cash provided by (used in) investing activities	39,799	(768,320)	(22,619)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of underwriters' discount		362,082
Proceeds from issuance of treasury stock, net of underwriters' discount		282,172
Payment of offering costs		(5,182)
Repurchase of common stock	(106,231)		(309,083)
Repayment of credit facility borrowings	(15,000)	(18,750)
Acquisition-related contingent consideration payment	(2,300)
Proceeds from credit facility borrowings			300,000
Dividends paid			(2,852)
Proceeds from exercise of stock options	6,165	14,660	720
Capital lease obligations paid	(116)	(112)	(130)
Tax paid for equity award issuances	(1,498)	(1,245)
Excess tax benefits from stock-based compensation		18,608	409
Net cash (used in) provided by financing activities	(118,980)	652,233	(10,936)
Increase (decrease) in cash and cash equivalents	13,649	(48,533)	51,973
Cash and cash equivalents, beginning of period	114,034	162,567
Cash and cash equivalents, end of period	127,683	114,034	162,567
Supplementary cash flow disclosure:
Cash paid during the period for: Income taxes, net of refunds	11,117	35,038	43,115
Cash paid during the period for: Interest	4,835	4,359	1,101
Non-cash investing activities:
Capital lease obligations incurred		249	14
Accounts payable for purchases of and investment in property, equipment and capitalized software	816	3,189	2,089
Accrued compensation for investment in capitalized software	$ 913	$ 567	$ 978

Consolidated Statements of Ca10

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from investing activities:
Acquisition, cash acquired	$ 861	$ 4,037

NATURE OF OPERATIONS

NATURE OF OPERATIONS	12 Months Ended
	Dec. 31, 2016
NATURE OF OPERATIONS
NATURE OF OPERATIONS	1. NATURE OF OPERATIONS ( in thousands, except share and per share amounts) Inovalon Holdings, Inc., (the "Company"), is a leading technology company that combines advanced cloud-based data analytics and data-driven intervention platforms to achieve meaningful impact in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape. The value that the Company delivers to its clients is achieved by turning data into insights and those insights into action. Through the Company's large proprietary datasets, advanced integration technologies, sophisticated predictive analytics, and deep subject matter expertise, the Company delivers seamless, end-to-end platforms that bring the benefits of big data and large-scale analytics to the point of care. The Company's analytics platforms identify gaps in care, quality, data integrity, and financial performance, in its clients' datasets. The Company's data-driven intervention platforms enable clients to take the insights derived from the analytics and implement unique, patient-level solutions, drive impact and enhance patient engagement. On September 17, 2014, Inovalon, Inc. implemented a holding company reorganization, pursuant to which Inovalon Holdings, Inc. (together with its wholly owned subsidiaries, Inovalon or the Company) became the new parent company of Inovalon, Inc. and Inovalon, Inc. became the direct, wholly owned subsidiary of the Company. The Company was incorporated in the state of Delaware on September 11, 2014. Inovalon, Inc. was incorporated in the state of Delaware on November 18, 2005. The impact of the holding company reorganization is retrospectively presented in the accompanying consolidated financial statements by recognizing the entity as Inovalon Holdings, Inc. The consolidated balance sheet and consolidated statement of stockholders' equity (deficit) depict the newly authorized classes of stock. Additionally, earnings per share is calculated based upon the newly created Class B common stock (refer to Notes 4 and 13 for additional information). On January 14, 2015, the Company's board of directors approved a five-for-one stock split of the Company's Class A common stock and Class B common stock. Effective January 16, 2015 the Company amended its certificate of incorporation to give effect to the stock split and to change the Company's authorized common equity capital to 900,000,000 shares of common stock, 750,000,000 shares of Class A common stock, and 150,000,000 shares of Class B common stock, par value $0.000005 per share. All share data included in these financial statements give retroactive effect to the stock split and related amendment to the Company's certificate of incorporation.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ( in thousands, except years) Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Inovalon Holdings, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Basis of Presentation and Use of Estimates —These consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP"). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. Significant estimates made by management include, but are not limited to: revenue recognition, specifically selling prices associated with the individual elements in multiple element arrangements; accounts receivable allowances; estimates of the fair value of stock-based awards; fair value of intangibles and goodwill; depreciable lives of property, equipment and capitalized software; and useful lives of intangible assets. Actual results could differ from management's estimates, and such differences could be material to the Company's consolidated financial position and results of operations. Cash and Cash Equivalents —Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the time of purchase, and demand deposits with financial institutions. Short-term investments —Short-term investments consists of investment grade debt securities. The Company classifies short-term investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All short-term investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive loss, a component of stockholders' equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. The Company considers impairments to be other-than-temporary if they are related to deterioration in credit risk, if it is more likely than not that the Company will be required to or if the Company intends to sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported as components of other income and (expenses), in the consolidated statements of operations. Interest, amortization of premiums, and accretion of discount on short-term investments classified as available for sale are included as a component of interest income, in the consolidated statements of operations. There were no other-than-temporary impairments during 2016. The Company may sell short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if the short-term investments have not yet reached maturity. As a result, the Company classifies these investments, including securities with maturities beyond 12 months, as current assets in the accompanying consolidated balance sheets. Gains or losses realized from the sale of securities are reclassified out of other comprehensive income (loss) into earnings using the specific identification method. Concentrations of Credit Risk —Accounts receivable and cash and cash equivalents subject the Company to its highest potential concentrations of credit risk. Although the Company deposits its cash and cash equivalents with multiple financial institutions, the Company's deposits may exceed federally insured limits. The Company has not experienced any losses on cash and cash equivalent accounts to date, and management believes the Company is not exposed to any significant credit risk related to cash and cash equivalents. The Company sells services to clients without requiring collateral, based on an evaluation of the client's financial condition. Exposure to losses on receivables is principally dependent on each client's financial condition. The Company monitors its exposure for credit losses and maintains allowances for anticipated losses. Revenue from significant clients, those representing 10% or more of total revenue for the respective periods, is summarized as follows: Year Ended Revenue: 2016 2015 2014 Client A % % % Client B * * % * Less than 10% Accounts receivable from significant clients, those representing 10% or more of total accounts receivable for the dates noted, is summarized below: December 31, Accounts Receivable: 2016 2015 Client A % * Client B * % * Less than 10% Accounts Receivable and Allowances —Accounts receivable consists primarily of amounts due to the Company from its normal business activities. The Company provides an allowance for estimated losses resulting from the failure of clients to make required payments (credit losses) and a sales allowance for estimated future billing adjustments resulting from client concessions or resolutions of billing disputes. The provision for sales allowances are charged against revenue while credit losses are recorded in general and administrative expenses. Fair Value Measurements —The Company applies the Accounting Standards Codifications, or ASC, 820-10, Fair Value Measurements and Disclosures, ASC 820-10. ASC 820-10 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and expands required disclosures about fair value measurements. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value: Level 1—Financial assets and liabilities whose values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2—Financial assets and liabilities whose values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3—Financial assets and liabilities whose values are based on unobservable inputs for the asset or liability. Financial instruments are defined as cash, or other financial instruments to a third party. The carrying amounts of accounts receivable and other current assets, accounts payable and accrued liabilities approximate fair value due to their short-term nature. The Company's Credit Facilities (as defined in Note 9 below) approximate fair value because of their floating rate structure. Property, Equipment and Capitalized Software, net —Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization on property, leasehold improvements, equipment, and software is computed on a straight-line basis over the estimated useful lives of the assets, as follows: Useful Life Office and computer equipment 3 - 5 years Purchased software 5 years Capitalized software 3 - 5 years Furniture and fixtures 7 years Building 40 years Leasehold improvements * Assets under capital leases * (*) lesser of lease term or economic life Expenses for repairs and maintenance that do not extend the life of property and equipment are charged to expense as incurred. Expenses for major renewals and betterments, which significantly extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized. In accordance with ASC 350-40, Internal-use Software , the Company capitalizes certain software development costs while in the application development stage related to software developed for internal use. All other costs to develop software for internal use, either in the preliminary project stage or post implementation stage, are expensed when incurred. Software development costs are amortized on a straight-line basis over a three to five year period, which management believes represents the useful life of these capitalized costs. In accordance with ASC 985-20, Software to be Sold, Leased, or Marketed , certain software development costs are expensed as incurred until technological feasibility has been established. Thereafter, all software development costs incurred through the software's general release date are capitalized and subsequently reported at the lower of amortized cost or net realizable value. Capitalized costs are amortized based on current and expected future revenue for each software solution with minimum annual amortization equal to the straight-line amortization over the estimated economic life, which is typically over a three to five year period, of the solution. Intangible Assets —Intangible assets consist of acquired technology, including developed and core technology, databases, trade names, and customer relationships. Intangible assets are initially recorded at fair value and amortized on a straight line basis over their estimated useful lives. Acquired intangible assets are being amortized over the following periods: Useful Life Proprietary software technology 4 - 10 years Trademark 3.5 - 10 years Database 10 years Customer relationships 8 - 15.75 years Non-compete agreements Contractual term In-process research and development Indefinite On an annual basis, the Company reviews its intangible assets for impairment based on estimated future undiscounted cash flows attributable to the assets. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their net realizable values. There were no impairment charges on intangible assets for the years ended December 31, 2016 and 2015. Goodwill —Goodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of the businesses acquired. Goodwill is not amortized. Goodwill is subject to impairment testing annually as of December 31 st , or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The two-step impairment test compares a reporting unit's carrying value to its fair value. If the fair value of the reporting unit exceeds the carrying value of the net assets, including goodwill assigned to that reporting unit, goodwill is not impaired. If the carrying value of the reporting unit's net assets, including goodwill, exceeds the fair value of the reporting unit, then the Company will determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then an impairment loss is recorded for the difference between the carrying amount and the implied fair value of the goodwill. The Company's 2016 impairment tests were based on a structure consisting of a single operating segment and three reporting units. During 2016, the Company performed a qualitative assessment for two of its reporting units. During this assessment, qualitative factors were first assessed to determine whether it was more likely than not that the fair value of the reporting units were less than their carrying amounts. Qualitative factors that were considered included, but were not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization. The Company also performed the first step of the goodwill impairment test for a reporting unit by comparing the fair value of the reporting unit to its carrying amount. Critical estimates in determining the fair value of the reporting unit include, but are not limited to, historical and projected customer retention rates, anticipated growth in revenue, expected future cash outflows, and a probability-weighted income approach based on scenarios in estimating achievement of operating results. Significant judgment in testing goodwill for impairment also includes assigning assets and liabilities to the reporting unit and determining the fair value of each reporting unit based on the Company's best estimates and assumptions, as well as other information including valuations that utilize customary valuation procedures and techniques. Based on the Company's annual impairment evaluation performed as of December 31, 2016, the Company concluded that there was no impairment of goodwill. The Company's 2015 impairment tests were based on a structure consisting of a single operating segment and two reporting units. During 2015, we performed a qualitative assessment for our reporting units, during this assessment, qualitative factors were first assessed to determine whether it was more likely than not that the fair value of the reporting units were less than their carrying amounts. Qualitative factors that were considered included, but were not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization. Based on the Company's annual impairment evaluation performed as of December 31, 2015, the Company concluded that there were no indicators of impairment and therefore there was no reason to perform the two-step impairment test. Valuation of Long-Lived Assets —The Company reviews long- lived assets for events or changes in circumstances that would indicate potential impairment. If the Company determines that an asset may not be recoverable, an impairment charge is recorded. There were no impairment charges on long-lived assets for the years ended December 31, 2016 and 2015, however, an $255 impairment charge on long-lived assets was recognized in general as administrative expenses for the year ended December 31, 2014. Revenue Recognition —The Company recognizes revenue when it is realized (or realizable) and earned (i.e., when services have been rendered or delivery of applicable deliverables has occurred). This occurs when persuasive evidence of an arrangement exists, the product or service has been performed or delivered, fees are fixed or determinable, and collection is reasonably assured. When collectability is not reasonably assured, revenue is recognized when cash is collected. Cash collections and invoices generated in excess of revenue recognized are recorded as deferred revenue until the revenue recognition criteria are met. The Company primarily derives its revenue from multiple-element arrangement sales of its cloud-based data analytics and data-driven intervention platform services. Revenue from these multiple element arrangements are recognized in accordance with ASC 605-25, Revenue Recognition — Multiple Element Arrangements . The Company allocates revenue to its cloud-based data analytics and data-driven intervention platform services using the relative selling price method. The Company has generally been unable to establish vendor-specific objective evidence of fair value, and while the Company routinely seeks third party evidence of fair value, meaningful data has generally been unavailable as the Company's services are unique and visibility into competitors pricing is unavailable. As a result, the Company uses its best estimate of selling price to allocate arrangement consideration to its contractual service elements. The Company has determined a best estimate of selling price by considering several external and internal factors including, but not limited to, pricing practices, profitability objectives, competition, customer demand, internal costs, and overall economic trends. Generally, the best estimate of selling price is consistent with the contractual arrangement fee for each element. Revenue is recognized as cloud-based data analytics and data-driven intervention services are performed and information is delivered to clients, which generally align with the Company's right to invoice its clients. Cloud- based data analytics services are considered performed when gaps in care, quality, data integrity, or financial performance, and summarized key analytics and benchmarking analytics reports are delivered to its clients, provided that all contractual performance requirements and other revenue recognition criteria are met. Cloud-based data-driven intervention services are considered performed upon completion, provided that all contractual performance requirements and other revenue recognition criteria are met. The Company also generates revenues from data-driven advisory services. The Company recognizes revenue for data-driven advisory services when persuasive evidence of an arrangement exists, services have been rendered, the contract price is fixed or determinable, and collectability is reasonably assured. The Company enters into arrangements for data-driven advisory services under time and materials, fixed-price, or retainer based contracts. Revenue for time and material contracts is recognized based upon contractually agreed upon billing rates applied to direct labor hours expended plus the costs of other items used in the performance of the contract. Revenue on certain fixed-price contracts is recognized using the proportional performance method. Performance is measured based on the ratio of labor hours incurred to total estimated labor hours. Revenues under certain other fixed-price and retainer based contracts are recognized ratably over the contract period or upon contract completion. Invoices to clients are generated in accordance with the terms of the applicable contract, which may not be directly related to the performance of services. Unbilled receivables are invoiced based upon the achievement of specific events as defined by each contract including deliverables and timetables. Unbilled receivables, if any, are classified as a current asset. Advanced billings to clients in excess of revenue earned are recorded as deferred revenue until the aforementioned revenue recognition criteria are met. The Company also enters into multiple-element software arrangements, which are recognized under ASC 985-605, Software Revenue Recognition , when software subscription licenses are provided to clients. Under these arrangements, the Company provides post-contract support, or PCS, including help desk support and unspecified upgrades. Vendor-specific objective evidence of fair value has not been established for PCS as PCS is not renewed separately from the license fees. As a result, under these subscription software license agreements, the Company recognizes revenue from the license of software ratably over the life of the agreement. The Company begins to recognize revenue upon execution of a signed agreement and delivery of the software, provided that the software license fees are fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company recognizes revenue on perpetual license fees after a non-cancellable license agreement has been signed, the product has been delivered, the fee is fixed or determinable and collectible, and allocates the total fee to multiple elements of their arrangements based on best estimate of selling prices when vendor-specific objective evidence is unavailable. Generally, sales of perpetual licenses are recognized at a point in time, as opposed to over time. Certain of the Company's arrangements entitle a client to receive a refund if the Company fails to satisfy contractually specified performance obligations. The refund is limited to a portion or all of the consideration paid. In this case, revenue is recognized when performance obligations are satisfied. The Company maintains an allowance, charged to revenue, which reflects the Company's estimated future billing adjustments resulting from client concessions or resolutions of billing disputes. Cost of Revenue —Cost of revenue consists primarily of expenses for employees who provide direct revenue-generating services to clients, including salaries, benefits, discretionary incentive bonus compensation, employment taxes, equity compensation costs, and severance. Cost of revenue also includes expenses associated with the integration and verification of data and other service costs incurred to fulfill the Company's revenue contracts. Cost of revenue does not include allocated amounts for occupancy expense and depreciation and amortization. Research and Development —Research and development expenses consist primarily of employee-related costs. All such costs are expensed as incurred, except for certain internal use software development costs that are capitalized. Research and development excludes any allocation of occupancy expense, depreciation and amortization. Selling and Marketing —Sales and marketing expense consists primarily of employee-related expenses including salaries, benefits, discretionary incentive compensation, employment taxes, severance and equity compensation costs for employees engaged in sales, sales support, business development, and marketing. Sales and marketing expense also includes operating expenses for marketing programs, research, trade shows and brand messages, and public relations costs. Sales and marketing expense excludes any allocation of occupancy expense, depreciation and amortization. General and Administrative —General and administrative expense consists primarily of employee-related expenses including salaries, benefits, discretionary incentive compensation, employment taxes, severance and equity compensation costs, for employees who are responsible for management information systems, administration, human resources, finance, legal, and executive management. General and administrative expense also includes occupancy expenses (including rent, utilities, communications, and facilities maintenance), professional fees, consulting fees, insurance, travel, and other expenses. General and administrative expense excludes any allocation of depreciation and amortization. Segments —The Company operates its business as one operating segment. The Company develops cloud-based data analytics and data-driven intervention platforms and provides related services to its clients in order to achieve meaningful insight and improvement in clinical and quality outcomes, utilization, and financial performance. The Company derives substantially all of its revenue from the sale and support of one group of similar products and related services—proprietary datasets, advanced integration technologies, sophisticated predictive analytics, and deep subject matter expertise that enable the Company to provide seamless, end-to-end platforms that bring the benefits of big data and large-scale analytics to clients. Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the Company's chief operating decision maker ("CODM"), in deciding how to allocate resources and in assessing performance. In the process of allocating resources and assessing performance, the Company's CODM, its chief executive officer, reviews financial information presented on a consolidated basis. Income Taxes —The Company accounts for income taxes in accordance with Accounting Standards Codification ASC 740, Income Taxes , which prescribes the use of the asset and liability approach to the recognition of deferred tax assets and liabilities related to the expected future tax consequences of events that have been recognized in the Company's financial statements or income tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets when it is more likely than not that a portion or all of a given deferred tax asset will not be realized. In accordance with ASC 740, income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the period plus any change in valuation allowances and (ii) current tax expense, which represents the amount of tax currently payable to or receivable from a taxing authority plus amounts accrued for expected tax contingencies (including both tax and interest). ASC 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those positions to be recognized in the financial statements. The Company continually reviews tax laws, regulations and related guidance in order to properly record any uncertain tax liability positions. The Company adjusts these reserves in light of changing facts and circumstances. Stock-Based Compensation —All stock-based awards, including employee stock option grants, restricted stock unit ("RSU") grants, and restricted stock awards ("RSA"), are recorded at fair value as of the grant date in accordance with ASC 718, Compensation—Stock Compensation , and recognized in the statement of operations over the service period of the applicable award using the straight-line method. The Company determines the fair value of its stock option awards on the date of grant, using the Black-Scholes option pricing model. The assumptions used in calculating the fair value of share-based awards represent management's best estimates. The Company measures RSUs and RSAs that vest upon satisfaction of a service condition, or a liquidity condition if such a condition is applicable, based on the fair market values of the underlying common stock on the dates of grant. RSUs are share awards that, upon vesting, will deliver to the holder shares of the Company's common stock. Compensation expense is recognized based upon the satisfaction of the requisite service and or liquidity condition as of that date, following the straight-line method. Treasury Stock —The Company records treasury stock activities under the cost method whereby the cost of the acquired stock is recorded as treasury stock. The Company's accounting policy upon the formal retirement of treasury stock is to deduct the par value from common stock and to reflect any excess of cost over par value as a reduction to additional paid-in capital (to the extent created by previous issuances of the shares) and then retained earnings. Deferred Rent —Deferred rent consists of rent escalation payment terms, tenant improvement allowances and other incentives received from landlords related to the Company's operating leases for its facilities. Rent escalation represents the difference between actual operating lease payments due and straight-line rent expense, which is recorded by the Company over the term of the lease, including any construction period. The excess is recorded as a deferred credit in the early periods of the lease, when cash payments are generally lower than straight-line rent expense, and is reduced in the later periods of the lease when payments begin to exceed the straight-line expense. Tenant allowances from landlords for tenant improvements are generally comprised of cash received from the landlord as part of the negotiated terms of the lease or reimbursements of moving costs. These cash payments are recorded as deferred rent from landlords and are amortized as a reduction of periodic rent expense, over the term of the applicable lease. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued updated guidance on revenue from contracts with customers. This revenue recognition guidance supersedes existing GAAP guidance, including most industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance identifies five steps to apply in achieving this principle. On July 9, 2015, the FASB approved a one year deferral of the effective date of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), to January 1, 2018. ASU 2014-09 may be applied either retrospectively or through the use of a modified-retrospective method. The Company is currently evaluating both methods of adoption as well as the effect ASU 2014-09 will have on the Company's consolidated financial position, results of operations, cash flows and financial disclosures, including whether the Company elects retrospective, or modified retrospective, method adoption. The Company anticipates that this standard may have a material impact on the consolidated financial statements with respect to additional disclosures related to qualitative and quantitative information concerning the nature, amount, timing, and any uncertainty of revenue and cash flows from contracts with customers, the capitalization of costs of commissions, upfront contract costs, and other contract acquisition-based and contract fulfillment costs on the consolidated balance sheets. The company is continuing to assess all potential impacts of the standard, including the impact to the pattern with which revenue is recognized. Early adoption is permitted. In February 2016, the FASB issued ASU. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In general, for lease arrangements exceeding a twelve month term, these arrangements will be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 will be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and note disclosures. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606) : Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ("ASU 2016-08"). This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and note disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). ASU 2016-09 modifies and intends to improve and simplify several aspects of the accounting for share-based paym

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	12 Months Ended
	Dec. 31, 2016
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	3. BUSINESS COMBINATIONS(in thousands, except share amounts) 2016 Acquisition On October 3, 2016, (the "acquisition date"), the Company completed its acquisition of Creehan Holding Co., Inc. ("Creehan"). Creehan, through its subsidiary Creehan & Company Corporation, is a leading provider of specialty pharmacy software solutions to the pharmaceutical industry. Pursuant to the terms of the Stock Purchase Agreement between the Company and Creehan (the "Stock Purchase Agreement"), Creehan became a wholly owned subsidiary of Inovalon. Pursuant to the terms of the Stock Purchase Agreement, Inovalon acquired all of the issued and outstanding capital stock of Creehan for an aggregate purchase price of $130 million, which was comprised of $120 million in cash and $10 million in shares of Class A common stock of the Company. The Company completed the acquisition of Creehan through the use of cash on hand and the issuance of 651,355 shares of Class A common stock, subject to resale restrictions. Certain components, which are referred to below as contingent consideration, of the aggregate purchase price are subject to the achievement of financial performance objectives. The Company acquired Creehan for the assembled workforce, technology platform, client base, and to accelerate entry into the specialty pharmacy software market. Transaction costs in connection with the acquisition are expensed as incurred and are included in general and administrative expenses. The results of operations related to Creehan are included in our consolidated statements of operations beginning from the date of acquisition. A summary of the preliminary composition of the stated purchase price and fair value of the stated purchase price is as follows: Share Purchase Agreement purchase price $ Working capital adjustment ) ​ ​ ​ ​ ​ Subtotal Fair value adjustments: Marketability restrictions on equity consideration ) Contingent consideration probability of achievement adjustment ) Post-acquisition compensation expense ) ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The composition of the fair value of the consideration transferred is as follows: Cash $ Issuance of Class A common stock Working capital adjustment receivable ) Contingent consideration ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recording of Assets Acquired and Liabilities Assumed Preliminary estimates of fair value included in the consolidated financial statements, in conformity with ASC No. 820, Fair Value Measurements and Disclosures, represent the Company's best preliminary estimates and preliminary valuations. In accordance with ASC No. 805, Business Combinations, the preliminary allocation of the consideration value is subject to adjustment until the Company has completed its analysis, but not to exceed one year after the date of acquisition, which was October 3, 2016, to provide the Company with the time to complete the valuation of its assets and liabilities. As of December 31, 2016, the Company was in the process of reviewing it assumptions related to (a) the fair value of consideration, pending the finalization of a customary working capital adjustment provision, (b) the finalization of assumptions used to determine the fair value of acquired deferred revenue liabilities, and (c) the finalization of estimates of tax related matters. If the previously identified matters are significant, changes to the Company's allocation of the consideration value to assets acquired and liabilities assumed could result as well as changes concerning amortization expense and revenue. The following table summarizes the preliminary purchase price allocation to assets acquired and liabilities assumed, including identification of measurement period adjustments: Preliminary Cash and cash equivalents $ Accounts receivable Other current assets Property, equipment and capitalized software Intangible assets(1) Goodwill(2) ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Current liabilities ) Deferred revenue ) ​ ​ ​ ​ ​ Total liabilities assumed ) ​ ​ ​ ​ ​ Net assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Identifiable intangible assets were measured using a combination of an income approach and a market approach. (2) Goodwill is the excess of the consideration transferred over the net assets recognized and represents the future economic benefits, primarily as a result of other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized. The goodwill attributable to the Creehan acquisition is deductible for tax purposes. The amounts preliminarily attributed to identified intangible assets are summarized in the table below: Weighted Recorded Customer relationships 8 years $ Tradename 4 years Technology 4 years In-process Research and Development indefinite ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition-related costs were expensed as incurred. For the year ended December 31, 2016, the Company incurred acquisition-related costs of $1,622 recognized within "General and administrative" expenses in the accompanying consolidated statements of operations. Creehan Results and Pro Forma Impact of Acquisition The following table presents revenue and loss before taxes of Creehan since the acquisition date, October 3, 2016, included in the consolidated statements of operations and includes amortization expense related to acquired intangible assets: Year Ended Revenue $ Loss before taxes $ ) The following table presents pro forma information, based on estimates and assumptions that the Company believes to be reasonable, for the Company as if the acquisition of Creehan had occurred at the beginning of the earliest period presented: Unaudited Year Ended 2016 2015 Pro forma revenue $ $ Pro forma income before taxes $ $ The pro forma information provided in the table above is not necessarily indicative of the consolidated results of operations for future periods or the results that actually would have been realized had the acquisition been completed at the beginning of the periods presented. The pro forma impact of the Creehan acquisition on current and prior quarters, subsequent to its acquisition for the three months ended December 31, 2016, were not material. The results of operations of Creehan have been included in our consolidated results from the date of acquisition. 2015 Acquisition On September 1, 2015, pursuant to the provisions of the Share Purchase Agreement, between the Company and Avalere Health Inc. ("Avalere"), the Company acquired all of the issued and outstanding capital stock of Avalere. Avalere is a provider of data-driven advisory services and business intelligence solutions primarily to the pharmaceutical and life sciences industry, as well as within their extensive array of client relationships with payors, providers and research institutions. Certain portions of the stated purchase price of $140,000 are contingent upon the achievement of financial and operational objectives, and other portions are subject to continued employment provisions. The Company completed the acquisition of Avalere through the use of cash on hand and the issuance of 235,737 shares of Class A common stock, subject to sale restrictions. The addition of Avalere, with its more than 200 pharmaceutical and life sciences clients, as well as an extensive array of client relationships with payors, providers and research institutions, is expected to expand Inovalon's capabilities and client base into the expansive and adjacent markets of the pharmaceutical and life sciences industry. A summary of the composition of the stated purchase price and fair value of the stated purchase price is as follows: Share Purchase Agreement purchase price $ Working capital adjustment ​ ​ ​ ​ ​ Subtotal ​ ​ ​ ​ ​ Fair Value Adjustments: Restricted stock marketability discount ) Performance objectives discount from maximum value ) Post-acquisition compensation expense ) ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The composition of the fair value of the consideration transferred is as follows: Cash $ Issuance of Class A common stock Contingent consideration ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recording of Assets Acquired and Liabilities Assumed Estimates of fair value included in the consolidated financial statements, in conformity with ASC 820, Fair Value Measurements and Disclosures, represent the Company's best estimates and valuations. In accordance with ASC 805, Business Combinations, the allocation of the consideration value is subject to adjustment until the Company has completed its analysis, but not to exceed one year after the date of acquisition, which was September 1, 2015, to provide the Company with the time to complete the valuation of its assets and liabilities. As of December 31, 2015, the Company has completed and finalized its analysis and allocation of the consideration value to assets acquired and liabilities assumed. In addition, as discussed in Note 2, the Company early adopted the provisions of ASU 2015-16 and recorded measurement period adjustments that were identified in the process of finalizing the aforementioned analysis and allocation. The following table summarizes the final purchase price allocation to assets acquired and liabilities assumed, including identification of measurement period adjustments: Preliminary Measurement Final Cash and cash equivalents $ $ — $ Accounts receivable ) Current assets — Property, equipment and capitalized software — Intangible assets(1) Goodwill(2) Deferred income taxes ) Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities ) ) Deferred tax liability ) ) ) Deferred revenue ) — ) Other liabilities ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities assumed ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net assets acquired $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Identifiable intangible assets were measured using a combination of an income approach and a market approach. (2) Goodwill is the excess of the consideration transferred over the net assets recognized and represents the future economic benefits, primarily as a result of other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized and is not deductible for tax purposes. The amounts attributed to identified intangible assets are summarized in the table below: Weighted Preliminary Measurement Final Customer relationships 10 years $ $ — $ Tradename 10 years — Technology 5 years Non-compete agreements 3 years — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition-related costs were expensed as incurred. For the year ended December 31, 2015, the Company incurred acquisition-related costs of $1,483, respectively, recognized within "General and administrative" expenses in the accompanying consolidated statements of operations. Avalere Results and Pro Forma Impact of Acquisition The following table presents revenue and loss before taxes of Avalere since the acquisition date, September 1, 2015, included in the consolidated statements of operations: Year Ended Revenue $ Loss before taxes $ ) The following table presents pro forma information, based on estimates and assumptions that the Company believes to be reasonable, for the Company as if the acquisition of Avalere had occurred at the beginning of the earliest period presented: Unaudited Year Ended 2015 2014 Pro forma revenue $ $ Pro forma income before taxes $ $ The pro forma information provided in the table above is not necessarily indicative of the consolidated results of operations for future periods or the results that actually would have been realized had the acquisition been completed at the beginning of the periods presented.

NET INCOME PER SHARE

NET INCOME PER SHARE	12 Months Ended
	Dec. 31, 2016
NET INCOME PER SHARE
NET INCOME PER SHARE	4. NET INCOME PER SHARE(in thousands, except per share amounts) During September 2014, the Company completed a holding company reorganization. As part of the reorganization, the Company implemented a multi-class stock structure. The Company has retrospectively presented the impact on net income per share (EPS) of this reorganization by calculating EPS based on the newly authorized, issued and outstanding shares of Class A and Class B common stock. Holders of all outstanding classes of common stock participate ratably in earnings on an identical per share basis as if all shares were a single class. The Company has issued restricted share awards of Class A common stock (RSAs) under the 2015 Omnibus Incentive Plan. The Company considers issued and unvested RSAs to be participating securities as the holders of these RSAs have a non-forfeitable right to dividends in the event of the Company's declaration of a dividend on shares of Class A and Class B common stock. Subsequent to the issuance of the participating securities, the Company applied the two-class method required in calculating net income per share of Class A and Class B common stock. Undistributed net income for a given period is apportioned to participating securities based on the weighted-average shares of each class of common stock outstanding during the applicable period as a percentage of the total weighted-average shares outstanding during the same period. Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less earnings attributable to participating securities. The net income per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the period has been distributed. As the liquidation and dividend rights are identical for both classes of common stock, the net income attributable to common stockholders is allocated on a proportionate basis. The Company has issued Class A common stock and Class B common stock. Holders of Class A common stock generally have the same rights, including rights to dividends, as holders of Class B common stock, except that holders of Class A common stock have one vote per share while holders of Class B common stock have ten votes per share. Each share of Class B common stock will convert into one share of Class A common stock immediately upon its sale or transfer. As such, basic and fully diluted earnings per share for Class A common stock and Class B common stock are the same. Basic net income per share of common stock is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. All participating securities are excluded from the basic weighted-average shares of common stock outstanding. Unvested RSAs are excluded from the calculation of the weighted-average shares of common stock until vesting occurs, as the restricted shares are subject to forfeiture and cancellation until vested. For purposes of the diluted net income per share attributable to common stockholders calculation, unvested shares of common stock resulting from RSAs are considered to be potentially dilutive shares of common stock. Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average shares outstanding, including potentially dilutive shares of common stock assuming the dilutive effect of potential shares of common stock for the period determined using the treasury stock method. Potentially dilutive securities also include stock options, restricted stock units, and shares to be purchased under the employee stock purchase plan. Under the treasury stock method, dilutive securities are assumed to be exercised at the beginning of the periods and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Securities are excluded from the computations of diluted net income per share if their effect would be anti-dilutive to earnings per share. The numerators and denominators of the basic and diluted EPS computations, reconciliations of the weighted average shares outstanding, and resulting basic and diluted earnings per share for our common stock are calculated as follows: Year Ended December 31, 2016 2015 2014 Basic Numerator: Net income $ $ $ Undistributed earnings allocated to participating securities — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to common stockholders—basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share attributable to common stockholders—basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Numerator: Net income attributable to common stockholders—diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Number of shares used for basic EPS computation Effect of dilutive securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares used in computing net income per share attributable to common stockholders—diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share attributable to common stockholders—diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The computation of diluted EPS does not include 44, and 645, and 1,234 equity awards for the years ended December 31, 2016, 2015, and 2014, respectively, because their inclusion would have an anti-dilutive effect on EPS.

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	12 Months Ended
	Dec. 31, 2016
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS	5. SHORT-TERM INVESTMENTS(in thousands) As of December 31, 2016, short-term investments consisted of the following: Amortized Cost Gross Unrealized Gross Estimated Fair Available-for-sale securities: Corporate notes and bonds $ $ $ ) $ U.S. agency obligations ) U.S. treasury securities ) Commercial paper — ) Certificates of deposit — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total available-for-sale securities $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015, short-term investments consisted of the following: Amortized Cost Gross Unrealized Gross Estimated Fair Available-for-sale securities: Corporate notes and bonds $ $ $ ) $ U.S. agency obligations ) U.S. treasury securities ) Commercial paper — ) Certificates of deposit — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total available-for-sale securities $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the estimated fair value of our short-term investments, designated as available-for-sale and classified by the contractual maturity date of the securities as of the dates shown: December 31, 2016 2015 Due in one year or less $ $ Due after one year through three years ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has certain available-for-sale securities in a gross unrealized loss position. The Company reviews its debt securities classified as short-term investments on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. The Company considers factors such as the length of time and extent to which the market value has been less than the cost, the financial position and near-term prospects of the issuer and the Company's intent to sell, or whether it is more likely than not the Company will be required to sell the investment before recovery of the investment's amortized-cost basis. If the Company determines that an other-than-temporary decline exists, or if write downs related to credit losses are necessary, in one of these securities, the unrealized losses attributable to the respective investment would be reclassified to realized losses on short-term investments within the statement of operations. There were no impairments considered other-than-temporary as of December 31, 2016. The following table shows the fair values and the gross unrealized losses of available-for-sale securities that were in a gross unrealized loss position, as of December 31, 2016, aggregated by investment category: Estimated Gross Corporate notes and bonds $ $ ) U.S. agency obligations ) U.S. treasury securities ) Commercial paper ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	6. FAIR VALUE MEASUREMENTS (in thousands) The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016: Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ $ Short-term investments: Corporate notes and bonds U.S. agency obligations U.S. treasury securities Commercial paper Certificates of deposit Other Current Liabilities: Contingent consideration — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ $ — $ — $ Short-term investments: Corporate notes and bonds — — U.S. agency obligations — — U.S. treasury securities — — Commercial paper — — Certificates of deposit — — Other Current Liabilities: Contingent consideration — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company determines the fair value of its security holdings based on pricing from its pricing vendors. The valuation techniques used to measure the fair value of financial instruments having Level 2 inputs were derived from non-binding consensus prices that are corroborated by observable market data or quoted market prices for similar instruments. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). The Company performs procedures to ensure that appropriate fair values are recorded such as comparing prices obtained from other sources. The following table presents our financial instruments measured at fair value using unobservable inputs (Level 3) as of the years ended December 31: Fair Value 2016 2015 Balance, beginning of period $ ) $ — Contingent consideration attributable to Avalere acquisition ) Accretion expense (recognized in general and administrative expenses) ) — Settlement (payment) of liability — Contingent consideration attributable to Creehan acquisition ) — ​ ​ ​ ​ ​ ​ ​ ​ Total $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

PROPERTY, EQUIPMENT AND CAPITAL

PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE	12 Months Ended
	Dec. 31, 2016
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE	7. PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE (in thousands) Property, equipment and capitalized software consisted of the following: December 31, 2016 2015 Office and computer equipment $ $ Leasehold improvements Purchased software Capitalized software Furniture and fixtures Land Building Work in process ​ ​ ​ ​ ​ ​ ​ ​ Total Less: accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Property, equipment and capitalized software, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company leases certain office equipment under capital lease agreements, with bargain purchase options at the end of the lease term. Leased office equipment included in property and equipment at December 31, 2016 and 2015 was $734 and $734, respectively. Depreciation expense for the years ended December 31, 2016, 2015, and 2014 was $28,078, $19,221, and $15,512, respectively. Amortization of the capital leases included in depreciation expense was $124, $118, and $133, for the years ended December 31, 2016, 2015, and 2014, respectively. At December 31, 2016 and 2015, the Company had unamortized capitalized software costs, including costs classified as work in progress, of $40,945 and $38,165, respectively. At December 31, 2016 and 2015, work in process consisted primarily of purchased software licenses, computer equipment, and capitalized software, which was not placed into service.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	8. GOODWILL AND INTANGIBLE ASSETS (in thousands, except years) Goodwill Goodwill is primarily derived from the Company's acquisitions of Creehan in 2016, Avalere in 2015, Catalyst Information Technologies, Inc. in 2009, and Medical Reliance Group, Inc. in 2006. Refer to Note 3 for further information regarding the goodwill that arose from the Company's acquisition of Creehan during 2016 and Avalere during 2015. The following table summarizes the activity related to the carrying value of our goodwill during the years ended December 31, 2016 and 2015: Goodwill as of January 1, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill recorded in connection with the acquisition of Avalere Health, Inc ​ ​ ​ ​ ​ Goodwill as of December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill adjustments recorded in connection with the acquisition of Avalere Health, Inc $ ) Goodwill recorded in connection with the acquisition of Creehan Holding Co., Inc. ​ ​ ​ ​ ​ Goodwill as of December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ During the 2016, the Company adjusted certain assets and liabilities related to the finalization of tax returns for Avalere and prefunded escrow-related amounts related to the settlement of a contingent consideration earn-out that was successfully achieved by Avalere. The adjustments had no impact on the Company's revenues or expenses. Based on our assessments of qualitative and quantitative factors, the adjustments were not considered to be material to our consolidated financial statements, individually or in the aggregate, to any previously issued consolidated financial statements. In addition the Company acquired Creehan, see Note 3 for additional detail. Intangible Assets Intangible assets at December 31, 2016 and 2015 were as follows: December 31, 2016 Gross Accumulated Net Weighted Proprietary software technologies $ ) $ — — Trademark ) — — Database ) Customer relationships ) Avalere acquisition (see Note 3): Customer Relationships ) Tradename ) Technology ) Non-compete agreements ) Creehan acquisition (see Note 3): Customer Relationships ) Tradename ) Technology ) In-Process R&D — Indefinite-lived ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 Gross Accumulated Net Weighted Proprietary software technologies $ $ ) $ — — Trademark ) — — Database ) Customer relationships ) Avalere acquisition (see Note 3): Customer Relationships ) Tradename ) Technology ) Non-compete agreements ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Driven primarily by the accelerated arrival of advancing generations of technological software capabilities, management decided to discontinue the use of proprietary software technology, acquired in the Medical Reliance Group acquisition, with an initial expected useful life of ten years. The Company shortened the life of the intangible asset, and accelerated straight-line amortization over the period of time the Company transitioned to an advanced software application, which occurred during 2015. At December 31, 2016 and 2015, the net carrying value of this proprietary software technology was zero. Amortization expense for the years ended December 31, 2016, 2015, and 2014 was $9,206, $3,412, and $4,368, respectively. Estimated future amortization expense of intangible assets, based upon the Company's intangible assets at December 31, 2016, is as follows: Amount Year ending December 31: 2017 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

CREDIT FACILITIES

CREDIT FACILITIES	12 Months Ended
	Dec. 31, 2016
CREDIT FACILITIES
CREDIT FACILITIES	9. CREDIT FACILITIES(in thousands) On September 19, 2014, the Company entered into a Credit and Guaranty Agreement ("Credit Agreement"), with a group of lenders including Goldman Sachs Bank USA, as administrative agent, to provide credit facilities in the aggregate maximum principal amount of $400,000, consisting of a senior unsecured term loan facility in the original principal amount of $300,000 (the "Term Loan Facility"), and a senior unsecured revolving credit facility in the maximum principal amount of $100,000 (together with the Term Loan Facility, the "Credit Facilities"). The Credit Facilities consisted of the following: December 31, December 31, Revolving Credit Facility $ — $ — Term Loan Facility ​ ​ ​ ​ ​ ​ ​ ​ Total Credit Facilities Less: current portion ​ ​ ​ ​ ​ ​ ​ ​ Non-current Credit Facilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The revolving credit facility became available to the Company on February 18, 2015, upon the consummation of its IPO. The Company's borrowing rate under the Credit Facilities is dependent on whether the Company elects Eurodollar loans or base rate loans. Interest accrues on Eurodollar loans at a defined Eurodollar rate, defined as the London Interbank Offer Rate ("LIBOR") plus the applicable margin of 1.25%, as defined in the Credit Agreement. Interest is payable monthly in arrears. The Credit Facility requires the Company to comply with specified financial covenants, including the maintenance of a $50,000 minimum cash and cash equivalents balance as of each calendar quarter end. The minimum cash and cash equivalents balance is not required to be held with any of the group of lenders and may be commingled with the Company's operating funds. The Credit Facility also contains various covenants, including affirmative covenants with respect to certain reporting requirements and maintaining certain business activities, and negative covenants that, among other things, may limit or impose restrictions on the Company's ability to incur liens, incur additional indebtedness, make investments, make acquisitions and undertake certain additional actions. As of, and during, the year ended December 31, 2016, the Company was in compliance with the financial covenants under the Credit Agreement. Scheduled maturity of the Credit Facilities follows: Amount 2017 2018 2019 ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES(in thousands) Operating Leases —The Company leases office space under operating lease arrangements, some of which contain renewal options. Future non-cancellable lease payments as of December 31, 2016 are as follows: Amount Year ending December 31, 2017 $ 2018 2019 2020 2021 — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total expense under operating leases was $8,925, $7,178, and $7,438, during the years ended December 31, 2016, 2015, and 2014, respectively. Certain operating leases contain rent escalation clauses, which are recorded on a straight-line basis over the initial term of the lease, with the difference between the rent paid and the straight-line rent recorded as a deferred rent liability. Lease incentives received from landlords are recorded as deferred rent liabilities and are amortized on a straight-line basis over the lease term as a reduction to rent expense. The deferred rent liability was $2,473 and $3,243 at December 31, 2016 and 2015, respectively. Capital Leases —The total capital lease liability at December 31, 2016 and 2015 was $330 and $405, respectively, which approximates fair value due to the short duration of the obligations. Letter of Credit —During 2014 the Company maintained a letter of credit with its primary commercial financial institution. As of December 31, 2015, the outstanding letter of credit was zero. The letter of credit was in lieu of a security deposit for the Company's corporate office. During 2015 the letter of credit was eliminated. Legal Proceedings —From time to time the Company is involved in various litigation matters arising out of the normal course of business. The Company consults with legal counsel on those issues related to litigation and seeks input from other experts and advisors with respect to such matters. Estimating the probable losses or a range of probable losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve discretionary amounts, present novel legal theories, are in the early stages of the proceedings, or are subject to appeal. Whether any losses, damages or remedies ultimately resulting from such matters could reasonably have a material effect on the Company's business, financial condition, results of operations, or cash flows will depend on a number of variables, including, for example, the timing and amount of such losses or damages (if any) and the structure and type of any such remedies. The Company's management does not presently expect any litigation matters to have a material adverse impact on the consolidated financial statements of the Company. On June 24, 2016, a purported securities class action complaint ( Xiang v. Inovalon Holdings, Inc., et.al. , No. 1:16-cv-04923) was filed in the United States District Court for the Southern District of New York against the Company, certain officers, directors and underwriters in the Company's initial public offering (the "Complaint"). The Complaint was brought on behalf of a purported class consisting of all persons or entities who purchased shares of the Company's Class A common stock pursuant or traceable to the Registration Statement issued in connection with the Company's initial public offering on February 18, 2015. The Complaint asserted violations of Sections 11 and 15 of the Securities Act based on allegedly false or misleading statements and omissions with respect to, among other things, the Company's revenues from sales in the city and state of New York and the Company's effective tax rate. The Complaint sought certification as a class action and unspecified compensatory damages plus interest and attorneys' fees. On June 28, 2016, a nearly identical complaint was filed in the same court captioned Patel v. Inovalon Holdings, Inc., et. al., No. 1:16-cv-05065. On July 5, 2016, the court consolidated the Xiang and Patel actions . On September 20, 2016, the court appointed a lead plaintiff and lead counsel. On December 21, 2016, lead plaintiff filed a consolidated class action complaint (the "Amended Complaint") purporting to assert violations of Sections 11, 12(a)(2), and 15 of the Securities Act based on allegedly false or misleading statements and omissions with respect to substantially the same topics as alleged in the Complaint. On February 21, 2017, and as required by the court's individual practices, we invoked the pre-motion process required prior to filing a motion to dismiss, which process is ongoing. The Company believes that the claims against it and its officers and directors are without merit, and the Company and the named officers and directors intend to defend themselves vigorously. In light of, among other things, the early stage of the litigation, the Company is unable to predict the outcome of these consolidated actions and is unable to make a meaningful estimate of the amount or range of loss, if any, that could result from an unfavorable outcome. On February 16, 2017, an order was entered unsealing a relator's civil False Claims Act qui tam complaint in the matter of U.S. ex rel. Benjamin Poehling, individually (Civil Action No: 11-cv-0258-A). The action was filed on October 27, 2011 in the Western District of New York. The case names 15 defendants, one of which is MedAssurant, Inc., the Company's former name, and cites the allegedly fraudulent submission of claims for and alleged false statements relating to risk adjustment payments under the federal Medicare program as the basis for the suit. The Company was not aware prior to February 16, 2017, that it was named as one of 15 defendants in this case until the complaint was unsealed. To date, the U.S. government has decided to intervene in this case against only two defendants but not to intervene against the Company. The Company has not been served. The Company believes the claims against it are without merit, and if the Company is served in the case, the Company intends to defend itself vigorously. In light of, among other things, the early stage of the litigation, the Company is unable to predict the outcome of this lawsuit and is unable to make a meaningful estimate of the amount or range of loss, if any, that could result from an unfavorable outcome.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2016
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	11. STOCK-BASED COMPENSATION (in thousands, except share and per share amounts, years, and percentages) Stock Options On December 31, 2006, the Company and its stockholders established the 2007 Long-Term Incentive Plan, or Plan, under which the Company's Board of Directors, at its discretion, could grant stock options to employees and certain directors of the Company. During 2009, the Plan was amended and currently authorizes the grant of stock options or other equity instruments for up to 10,275,000 shares of common stock. The stock options granted under the Plan generally expire at the earlier of a specified period after termination of service or the date specified by the Board of Directors at the date of grant, but not more than ten years from such grant date. Stock issued as a result of exercised stock options will be issued from the Company's authorized available stock. Effective June 5, 2012, the 2007 Long-Term Incentive Plan changed its name to the Inovalon, Inc. 2007 Long-Term Incentive Plan. Options granted under the Plan may be incentive stock options or non-qualified stock options under the applicable provisions of the Internal Revenue Code. The 2007 Long-Term Incentive Plan was terminated upon completion of the IPO. Awards granted under the 2007 Long-Term Incentive Plan will remain outstanding until the earlier of exercise, forfeiture, cancellation or expiration. On February 18, 2015, the date of the completion of the Company's IPO, the Company's 2015 Omnibus Incentive Plan (the "2015 Plan") became effective. The 2015 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), to the Company's employees and any parent and subsidiary employees, and for the grant of non-qualified stock options, stock appreciation rights, restricted stock, RSAs, RSUs, dividend equivalent rights, cash-based awards (including annual cash incentives and long-term cash incentives), and any combination thereof to the Company's employees, directors, and consultants and to employees, directors, and consultants of certain affiliated entities. The Company reserved for issuance under the 2015 Plan shares of its Class A common stock equal to the sum of: (i) 7,335,430 shares of Class A common stock; and (ii) the number of shares of its Class A common stock underlying awards granted under the Company's 2007 Long-Term Incentive Plan, which was terminated upon completion of the IPO, that are forfeited, canceled, or expire (whether voluntarily or involuntarily). The Company selected the Black-Scholes option-pricing model as the most appropriate model for determining the estimated fair value for stock-based awards. The Black-Scholes option-pricing model requires the use of estimates, including the fair market value of the Company's common stock prior to the Company's IPO, expected stock price volatility, expected term, estimated forfeitures and the risk-free interest rate. The fair value of stock option awards is amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. Prior to the Company's IPO, determining the fair value of the Company's common stock required complex and subjective judgment and estimates. There is inherent uncertainty in making these judgments and estimates. Since the Company's share price was not publicly quoted and lacked an active trading market prior to the Company's IPO in February 2015, the Company's Compensation Committee was required to estimate the fair value of the common stock at each meeting at which options were granted based on factors including, but not limited to, contemporaneous valuations of the Company's common stock performed by an unrelated third-party specialist, the lack of marketability of the Company's common stock, developments in the business, share repurchase arrangements, the status of the Company's development and sales efforts, revenue growth, valuations of comparable companies, and additional objective and subjective factors relating to the Company's business. The Company did not grant any options during 2016 and 2015. The fair value of each option grant is estimated on the date of grant applying the Black-Scholes option pricing model using the following assumptions: December 31, 2016 2015 2014 Expected stock price volatility — % — % % Expected term —Years —Years 6.5 Years Expected dividend yield — — — Risk-free interest rate — % — % % Weighted-average fair value of underlying common stock $ — $ — $ Expected volatility was calculated as of each grant date based on reported data for several unrelated public companies within the Company's industry that are considered to be comparable to the Company and for which historical information was available. The average expected term was determined under the simplified calculation as provided by the Securities and Exchange Commission's Staff Accounting Bulletin No. 107, Share-Based Payment, which is the mid-point between the vesting date and the end of the contractual term. The dividend yield assumption of zero is based upon the fact that the Company does not have a formal dividend payment policy, the Company does not intend to pay cash dividends on its common stock in the future, and, to the extent the Company pays dividends in the future, there is no assurance that any such dividends will be comparable to those previously declared. Any declarations of dividends and the establishment of future record and payment dates are subject to the final determination of the Company's Board of Directors. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve rates with the remaining term commensurate with the expected life assumed at the date of grant. Forfeitures are recorded as adjustments to expense as they occur. Stock option activity under the Company's plans was as follows: Number of Weighted- Weighted- Weighted- Aggregate Balance at January 1, 2014 $ $ Stock options granted $ $ Stock options exercised ) $ Stock options cancelled ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options granted — Stock options exercised ) $ Stock options cancelled ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options granted — — Stock options exercised ) $ Stock options cancelled ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ Vested and expected to vest at December 31, 2016 $ $ The total grant-date fair value of stock options granted during the years ended December 31, 2016, 2015, and 2014 was $0, $0, and $14,922, respectively. The weighted average grant-date fair value per share of stock options granted during the years ended December 31, 2016, 2015, and 2014, was $0, $0, and $9.07, respectively. As of December 31, 2016, there is $5,911 of total unrecognized compensation expense related to unvested stock options, and this expense is expected to be recognized over a weighted-average period of 2.3 years. The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between the fair value of the Company's common stock and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options. This amount is subject to change based on changes to the fair market value of the Company's common stock. Restricted Stock Units On November 13, 2014, the Company granted 488,780 RSUs pursuant to the Company's 2007 Long-Term Incentive Plan. The RSUs had a grant date fair value of $9,722. The Company used the fair market value of the underlying common stock on the date of grant to determine the fair value of RSUs, which was $19.89 per RSU. The RSUs vest upon the satisfaction of both a service condition and a liquidity condition. The service condition for these awards is satisfied over five years. The liquidity condition is satisfied upon the occurrence of a qualifying event, defined as a change of control transaction or six months following the completion of the Company's IPO. As of December 31, 2014, no share-based compensation expense had been recognized for these RSUs because the qualifying events (described above) had not occurred. This six-month period following the IPO is not a substantive service condition and, accordingly, in 2015, the year in which the Company consummated its IPO, the Company recognized a cumulative share-based compensation expense for the portion of the RSUs that had met the service condition as of that date, following the straight-line method, net of estimated forfeitures. All remaining unrecognized share-based compensation expense related to these RSUs will be recorded over the remaining requisite service period using the straight-line method, based on awards ultimately expected to vest. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. On March 5, 2015, the Company granted 76,273 RSUs pursuant to the 2015 Plan. The awards granted vest ratably over five years on each anniversary of the award grant date, and upon vesting, the Company will deliver to the holder shares of the Company's Class A common stock under the 2015 Plan. Pursuant to the terms of the awards, any unvested shares terminate upon the RSU holders' separation from the Company. The grant date fair value of the RSUs was $2,337, in aggregate, or $30.64 per RSU. The Company will recognize share-based compensation expense following the straight-line method, net of estimated forfeitures, over the requisite service period. The Company records adjustments related to forfeitures as they occur. A summary of RSUs granted and unvested is as follows: RSUs Outstanding Number of Weighted RSUs granted and unvested at January 1, 2015 $ RSUs granted during 2015 RSUs vested during 2015 ) RSUs forfeited during 2015 ) ​ ​ ​ ​ ​ ​ ​ ​ RSUs granted and unvested at December 31, 2015 $ RSUs granted during 2016 — — RSUs vested during 2016 ) RSUs forfeited during 2016 ) ​ ​ ​ ​ ​ ​ ​ ​ RSUs granted and unvested at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2016, there was a total of $5,859 in unrecognized compensation cost related to unvested RSUs, which are expected to be recognized over a weighted-average period of approximately 2.9 years. Restricted Stock Awards On May 28, 2015, the Company granted 71,946 RSAs pursuant to the 2015 Plan. RSAs granted to directors fully vest upon the one year anniversary of the award grant date, and RSAs granted to employees vest ratably over five years on each anniversary of the award grant date. Upon vesting, the Company will deliver shares of the Company's Class A common stock to the holders. Pursuant to the terms of the awards, any unvested shares terminate upon the RSA holders' separation from the Company. The grant date fair value of the RSAs was $2,000, in aggregate, or $27.80 per RSA. The Company recognizes share-based compensation expense for the RSAs following the straight-line method, net of estimated forfeitures, over the requisite service period. The Company records adjustments related to forfeitures as they occur. On November 12, 2015, the company granted 524,105 RSAs pursuant to the 2015 Plan. The RSAs were granted to employees and vest ratably over five years on each anniversary of the award grant date. Upon vesting, the Company will deliver shares of the Company's Class A common stock to the holders. Pursuant to the terms of the awards, any unvested shares terminate upon the RSA holders' separation from the Company. The grant date fair value of the RSAs was $9,198, in aggregate, or $17.55 per RSA. The Company recognizes share-based compensation expense for the RSAs following the straight-line method, net of estimated forfeitures, over the requisite service period. The Company records adjustments related to forfeitures as they occur. A summary of RSAs granted and unvested is as follows: RSAs Outstanding Number of Weighted RSAs granted and unvested at January 1, 2015 — $ — RSAs granted during 2015 RSAs vested during 2015 — — RSAs forfeited during 2015 ) ​ ​ ​ ​ ​ ​ ​ ​ RSAs granted and unvested at December 31, 2015 $ RSAs granted during 2016 RSAs vested during 2016 ) RSAs forfeited during 2016 ) ​ ​ ​ ​ ​ ​ ​ ​ RSAs granted and unvested at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2016, there was a total of $39,207 in unrecognized compensation cost, net of estimated forfeitures, related to unvested RSAs, which are expected to be recognized over a weighted-average period of approximately 4.5 years. Employee Stock Purchase Plan On February 18, 2015, the date of the completion of the Company's IPO, the 2015 Employee Stock Purchase Plan ("2015 ESPP") became effective. The 2015 ESPP provides for (i) six-month purchase periods (commencing each March 1 and September 1) and (ii) that the purchase price for shares of Class A common stock purchased under the 2015 ESPP will be 85% of the fair market value of the Company's Class A common stock on the last day of the applicable offering period. Eligible employees are able to select a rate of payroll deduction between 1% and 15% of their base cash compensation subject to a maximum payroll deduction per offering period of $7,500. The 2015 ESPP is intended to qualify as an employee stock purchase plan under Section 423 of the Code. The Company reserved 1,833,857 shares of Class A common stock for issuance under the 2015 ESPP. During the year ended December 31, 2015, the Company purchased and issued 30,689 shares of common stock to 2015 ESPP participants at a discounted price of $18.61 per share and recorded stock-based compensation related to the 2015 ESPP of $156. During the year ended December 31, 2016, the Company purchased and issued 61,184 shares of common stock to 2015 ESPP participants at a discounted price of $14.03 per share and recorded stock-based compensation related to the 2015 ESPP of $140.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2016
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS	12. EMPLOYEE BENEFIT PLANS(in thousands) On June 1, 2007, the Company adopted a 401(k) Profit Sharing Plan and Trust, or 401(k) Plan. The 401(k) Plan was amended on February 1, 2010. The amended 401(k) Plan allows employees to become eligible to participate upon the completion of 30 days of service. The Company matches employee contributions up to 4.0% of their compensation and the employer contributions vest immediately. During the years ended December 31, 2016, 2015, and 2014, total expense recorded for the Company's matching 401(k) contributions were $5,165, $4,227, and $2,820, respectively.

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT)	12 Months Ended
	Dec. 31, 2016
STOCKHOLDERS' EQUITY (DEFICIT)
STOCKHOLDERS' EQUITY (DEFICIT)	13. STOCKHOLDERS' EQUITY (DEFICIT)(in thousands, except share amounts) In February 2013, to provide liquidity to certain existing stockholders who desired liquidity and to reduce the number of stockholders and outstanding shares of common stock, the Company initiated a share repurchase and liquidity initiative for and among existing stockholders. During 2013, the Company repurchased 10,703,360 shares of common stock for aggregate consideration of $72,114 and sold 7,216,610 shares of common stock for $52,114, resulting in a net repurchase of 3,486,750 treasury stock shares at an aggregate net cost of $20,000. Upon repurchase, the treasury stock shares were immediately retired. In connection with the retirement, of the $20,000 value assigned to the treasury stock shares, $2,403 was allocated to additional paid-in capital and $17,597 was allocated to retained earnings. The amount allocated to additional paid-in capital was determined based on the paid-in capital per share generated from the historical issuances of these treasury stock shares. During June 2014, the Company repurchased 1,462,320 shares at a cost of $9,066. Upon repurchase, the shares were immediately retired. In connection with the retirement, of the $9,066 value assigned to the repurchased shares, $1,011 was allocated to additional paid-in capital and $8,055 was allocated to retained earnings. The amount allocated to additional paid-in capital was determined based on the paid-in capital per share generated from the historical issuances of these shares. On September 16, 2014, in connection with the holding company reorganization, the Company's common stock was reclassified to implement a multi-class capital structure providing for common stock, Class A common stock and Class B common stock. Each share of common stock held by the then-existing stockholders of Inovalon, Inc. at the time of the holding company reorganization was reclassified as Class B common stock of the Company. On September 19, 2014, the Company authorized the pro-rata redemption of approximately 8.33% of the Company's outstanding Class B common stock from the then-existing holders. During September 2014, the Company completed the pro-rata redemption and repurchased 11,109,285 shares of Class B common stock for $300,017, which automatically converted from Class B common stock to Class A common stock. This redemption occurred at a price per share of $27.01, which was in excess of the estimated fair value of our common stock of $19.89 per share as of September 30, 2014 calculated for the purpose of determining our stock-based compensation expense. The estimated fair value of our common stock on a per share basis, as of September 30, 2014, was based upon a contemporaneous valuation of the Company's common stock performed in conjunction with an unrelated third-party specialist and the calculation of the estimated fair value of the common stock includes certain assumptions and discounts that are required to be applied to the valuations of privately held companies. The Company did not contribute nor receive any stated or unstated rights, privileges, or other consideration as part of the redemption, therefore, at December 31, 2014, these repurchased 11,109,285 Class A shares of common stock were held and accounted for as treasury shares. On February 18, 2015, the Company completed its initial public offering of 22,222,222 shares of Class A common stock and, upon the underwriters' exercise of their option to purchase additional shares, issued an additional 3,142,581 shares of Class A common stock for a total of 25,364,803 shares issued (the "IPO"). All of the shares issued in the IPO were primary shares offered by the Company as none of the Company's stockholders sold any shares in the IPO. The offering price of the shares sold in the IPO was $27.00 per share, resulting in net proceeds to the Company, after the underwriters' discounts and commissions and other expenses, payable by the Company, of approximately $639.1 million. On May 4, 2016, the Company announced that its Board of Directors authorized a program to repurchase up to $100 million of Inovalon's Class A common stock through December 31, 2016. Repurchases under the Company's share repurchase program have been made in open-market or privately negotiated transactions. The Company has and expects to continue to fund repurchases through a combination of cash on hand, cash generated by operations and sales of short-term investments, if needed. On November 2, 2016, the Company announced that its Board of Directors authorized an expansion of the share repurchase program to repurchase up to an additional $100 million of shares of Inovalon's Class A Common Stock (bringing the total to $200 million) through December 31, 2017. The share repurchase program does not obligate the Company to acquire any particular amount of Class A common stock. During the year ended December 31, 2016, there were 7,508,985 Class A common shares repurchased for $106.2 million, at an average cost of $14.15 per share, excluding commissions. At December 31, 2016, approximately $94.0 million remained available to repurchase shares under the share repurchase program.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES
INCOME TAXES	14. INCOME TAXES(in thousands, except percentages) The provision for income taxes consisted of the following: Year Ended December 31, 2016 2015 2014 Current: Federal $ $ $ State Foreign (Puerto Rico) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal ) State ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred provision ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The provision for income taxes reconciles to the amount computed by applying the federal statutory rate (35.0%) to income before income taxes as follows: Year Ended December 31, 2016 2015 2014 Expected federal income tax % $ % $ % $ State income taxes, net of federal income tax effect Permanent items ) ) Research and development tax credits ) ) ) ) ) ) Excess tax benefits and share-based compensation ) ) — — — — Acquisition-related deferred tax adjustments ) ) — — — — Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense % $ % $ % $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities were as follows: December 31, 2016 2015 Components of deferred tax assets and liabilities Deferred tax assets: Accrued expenses and reserves $ $ Stock-based compensation Deferred rent Net operating loss carryforwards Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Intangibles $ $ Property, equipment and capitalized software Prepaids and other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities before valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ Valuation Allowance — ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Uncertain Tax Positions —During the years ended December 31, 2016, 2015, and 2014, changes in the liability for gross uncertain tax position, including interest, totaled $80, $0, and $0, respectively. 2016 2015 2014 Uncertain tax position January 1 $ — $ — $ — Gross increase in tax positions in prior period — — Gross decrease in tax positions in prior period — — — Gross increase in tax positions from stock acquisitions — — — Settlement — — — Lapse of statute of limitations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Uncertain tax position at December 31 $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Operating Losses carryforwards(NOLs) —At December 31, 2016 and 2015, we had federal net operating loss ("NOL") carryforwards of approximately $1.0 and $5.0 million, respectively. These NOL carryforwards will expire by 2036. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could differ from the Company's accrued position. Accordingly, additional provisions on federal, state and foreign tax-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved. The Company is subject to taxation by the United States of America, various United States of America jurisdictions, and Puerto Rico. The number of years with open tax audits varies depending on the tax jurisdiction.

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts and Reserves	12 Months Ended
	Dec. 31, 2016
Schedule II - Valuation and Qualifying Accounts and Reserves
Schedule II - Valuation and Qualifying Accounts and Reserves	INOVALON HOLDINGS, INC. Description Balance at Additions Additions Deductions Balance at Year Ended December 31, 2016 Allowance for accounts receivable $ $ $ — $ ) $ Year Ended December 31, 2015 Allowance for accounts receivable $ $ $ — $ ) $ Year Ended December 31, 2014 Allowance for accounts receivable $ $ $ — $ ) $

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Inovalon Holdings, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	These consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP"). The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenue and expenses during the reported period.
Use of Estimates	Significant estimates made by management include, but are not limited to: revenue recognition, specifically selling prices associated with the individual elements in multiple element arrangements; accounts receivable allowances; estimates of the fair value of stock-based awards; fair value of intangibles and goodwill; depreciable lives of property, equipment and capitalized software; and useful lives of intangible assets. Actual results could differ from management's estimates, and such differences could be material to the Company's consolidated financial position and results of operations.
Cash and Cash Equivalents	Cash and Cash Equivalents —Cash and cash equivalents consist of highly liquid investments with an original maturity of three months or less at the time of purchase, and demand deposits with financial institutions.
Short-term investments	Short-term investments —Short-term investments consists of investment grade debt securities. The Company classifies short-term investments as available-for-sale at the time of purchase and reevaluates such classification as of each balance sheet date. All short-term investments are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive loss, a component of stockholders' equity. The Company evaluates its investments to assess whether those with unrealized loss positions are other than temporarily impaired. The Company considers impairments to be other-than-temporary if they are related to deterioration in credit risk, if it is more likely than not that the Company will be required to or if the Company intends to sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported as components of other income and (expenses), in the consolidated statements of operations. Interest, amortization of premiums, and accretion of discount on short-term investments classified as available for sale are included as a component of interest income, in the consolidated statements of operations. There were no other-than-temporary impairments during 2016. The Company may sell short-term investments at any time, without significant penalty, for use in current operations or for other purposes, even if the short-term investments have not yet reached maturity. As a result, the Company classifies these investments, including securities with maturities beyond 12 months, as current assets in the accompanying consolidated balance sheets. Gains or losses realized from the sale of securities are reclassified out of other comprehensive income (loss) into earnings using the specific identification method.
Concentrations of Credit Risk	Concentrations of Credit Risk —Accounts receivable and cash and cash equivalents subject the Company to its highest potential concentrations of credit risk. Although the Company deposits its cash and cash equivalents with multiple financial institutions, the Company's deposits may exceed federally insured limits. The Company has not experienced any losses on cash and cash equivalent accounts to date, and management believes the Company is not exposed to any significant credit risk related to cash and cash equivalents. The Company sells services to clients without requiring collateral, based on an evaluation of the client's financial condition. Exposure to losses on receivables is principally dependent on each client's financial condition. The Company monitors its exposure for credit losses and maintains allowances for anticipated losses. Revenue from significant clients, those representing 10% or more of total revenue for the respective periods, is summarized as follows: Year Ended Revenue: 2016 2015 2014 Client A % % % Client B * * % * Less than 10% Accounts receivable from significant clients, those representing 10% or more of total accounts receivable for the dates noted, is summarized below: December 31, Accounts Receivable: 2016 2015 Client A % * Client B * % * Less than 10%
Accounts Receivable and Allowances	Accounts Receivable and Allowances —Accounts receivable consists primarily of amounts due to the Company from its normal business activities. The Company provides an allowance for estimated losses resulting from the failure of clients to make required payments (credit losses) and a sales allowance for estimated future billing adjustments resulting from client concessions or resolutions of billing disputes. The provision for sales allowances are charged against revenue while credit losses are recorded in general and administrative expenses.
Fair Value Measurements	Fair Value Measurements —The Company applies the Accounting Standards Codifications, or ASC, 820-10, Fair Value Measurements and Disclosures , ASC 820-10. ASC 820-10 defines fair value, establishes a fair value hierarchy for assets and liabilities measured at fair value, and expands required disclosures about fair value measurements. This guidance requires the Company to classify and disclose assets and liabilities measured at fair value on a recurring basis, as well as fair value measurements of assets and liabilities measured on a nonrecurring basis in periods subsequent to initial measurement, in a three-tier fair value hierarchy as described below. The guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance describes three levels of inputs that may be used to measure fair value: Level 1—Financial assets and liabilities whose values are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2—Financial assets and liabilities whose values are based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3—Financial assets and liabilities whose values are based on unobservable inputs for the asset or liability. Financial instruments are defined as cash, or other financial instruments to a third party. The carrying amounts of accounts receivable and other current assets, accounts payable and accrued liabilities approximate fair value due to their short-term nature. The Company's Credit Facilities (as defined in Note 9 below) approximate fair value because of their floating rate structure.
Property, Equipment and Capitalized Software, net	Property, Equipment and Capitalized Software, net —Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization on property, leasehold improvements, equipment, and software is computed on a straight-line basis over the estimated useful lives of the assets, as follows: Useful Life Office and computer equipment 3 - 5 years Purchased software 5 years Capitalized software 3 - 5 years Furniture and fixtures 7 years Building 40 years Leasehold improvements * Assets under capital leases * (*) lesser of lease term or economic life Expenses for repairs and maintenance that do not extend the life of property and equipment are charged to expense as incurred. Expenses for major renewals and betterments, which significantly extend the useful lives of existing property and equipment, are capitalized and depreciated. Upon retirement or disposition of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized. In accordance with ASC 350-40, Internal-use Software, the Company capitalizes certain software development costs while in the application development stage related to software developed for internal use. All other costs to develop software for internal use, either in the preliminary project stage or post implementation stage, are expensed when incurred. Software development costs are amortized on a straight-line basis over a three to five year period, which management believes represents the useful life of these capitalized costs. In accordance with ASC 985-20, Software to be Sold, Leased, or Marketed , certain software development costs are expensed as incurred until technological feasibility has been established. Thereafter, all software development costs incurred through the software's general release date are capitalized and subsequently reported at the lower of amortized cost or net realizable value. Capitalized costs are amortized based on current and expected future revenue for each software solution with minimum annual amortization equal to the straight-line amortization over the estimated economic life, which is typically over a three to five year period, of the solution.
Intangible Assets	Intangible Assets —Intangible assets consist of acquired technology, including developed and core technology, databases, trade names, and customer relationships. Intangible assets are initially recorded at fair value and amortized on a straight line basis over their estimated useful lives. Acquired intangible assets are being amortized over the following periods: Useful Life Proprietary software technology 4 - 10 years Trademark 3.5 - 10 years Database 10 years Customer relationships 8 - 15.75 years Non-compete agreements Contractual term In-process research and development Indefinite On an annual basis, the Company reviews its intangible assets for impairment based on estimated future undiscounted cash flows attributable to the assets. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their net realizable values. There were no impairment charges on intangible assets for the years ended December 31, 2016 and 2015.
Goodwill	Goodwill —Goodwill represents the excess of acquisition costs over the fair value of tangible net assets and identifiable intangible assets of the businesses acquired. Goodwill is not amortized. Goodwill is subject to impairment testing annually as of December 31 st , or whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. The two-step impairment test compares a reporting unit's carrying value to its fair value. If the fair value of the reporting unit exceeds the carrying value of the net assets, including goodwill assigned to that reporting unit, goodwill is not impaired. If the carrying value of the reporting unit's net assets, including goodwill, exceeds the fair value of the reporting unit, then the Company will determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then an impairment loss is recorded for the difference between the carrying amount and the implied fair value of the goodwill. The Company's 2016 impairment tests were based on a structure consisting of a single operating segment and three reporting units. During 2016, the Company performed a qualitative assessment for two of its reporting units. During this assessment, qualitative factors were first assessed to determine whether it was more likely than not that the fair value of the reporting units were less than their carrying amounts. Qualitative factors that were considered included, but were not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization. The Company also performed the first step of the goodwill impairment test for a reporting unit by comparing the fair value of the reporting unit to its carrying amount. Critical estimates in determining the fair value of the reporting unit include, but are not limited to, historical and projected customer retention rates, anticipated growth in revenue, expected future cash outflows, and a probability-weighted income approach based on scenarios in estimating achievement of operating results. Significant judgment in testing goodwill for impairment also includes assigning assets and liabilities to the reporting unit and determining the fair value of each reporting unit based on the Company's best estimates and assumptions, as well as other information including valuations that utilize customary valuation procedures and techniques. Based on the Company's annual impairment evaluation performed as of December 31, 2016, the Company concluded that there was no impairment of goodwill. The Company's 2015 impairment tests were based on a structure consisting of a single operating segment and two reporting units. During 2015, we performed a qualitative assessment for our reporting units, during this assessment, qualitative factors were first assessed to determine whether it was more likely than not that the fair value of the reporting units were less than their carrying amounts. Qualitative factors that were considered included, but were not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances, after tax cash flows and market capitalization. Based on the Company's annual impairment evaluation performed as of December 31, 2015, the Company concluded that there were no indicators of impairment and therefore there was no reason to perform the two-step impairment test.
Valuation of Long-Lived Assets	Valuation of Long-Lived Assets —The Company reviews long- lived assets for events or changes in circumstances that would indicate potential impairment. If the Company determines that an asset may not be recoverable, an impairment charge is recorded. There were no impairment charges on long-lived assets for the years ended December 31, 2016 and 2015, however, an $255 impairment charge on long-lived assets was recognized in general as administrative expenses for the year ended December 31, 2014.
Revenue Recognition	Revenue Recognition —The Company recognizes revenue when it is realized (or realizable) and earned (i.e., when services have been rendered or delivery of applicable deliverables has occurred). This occurs when persuasive evidence of an arrangement exists, the product or service has been performed or delivered, fees are fixed or determinable, and collection is reasonably assured. When collectability is not reasonably assured, revenue is recognized when cash is collected. Cash collections and invoices generated in excess of revenue recognized are recorded as deferred revenue until the revenue recognition criteria are met. The Company primarily derives its revenue from multiple-element arrangement sales of its cloud-based data analytics and data-driven intervention platform services. Revenue from these multiple element arrangements are recognized in accordance with ASC 605-25, Revenue Recognition—Multiple Element Arrangements . The Company allocates revenue to its cloud-based data analytics and data-driven intervention platform services using the relative selling price method. The Company has generally been unable to establish vendor-specific objective evidence of fair value, and while the Company routinely seeks third party evidence of fair value, meaningful data has generally been unavailable as the Company's services are unique and visibility into competitors pricing is unavailable. As a result, the Company uses its best estimate of selling price to allocate arrangement consideration to its contractual service elements. The Company has determined a best estimate of selling price by considering several external and internal factors including, but not limited to, pricing practices, profitability objectives, competition, customer demand, internal costs, and overall economic trends. Generally, the best estimate of selling price is consistent with the contractual arrangement fee for each element. Revenue is recognized as cloud-based data analytics and data-driven intervention services are performed and information is delivered to clients, which generally align with the Company's right to invoice its clients. Cloud- based data analytics services are considered performed when gaps in care, quality, data integrity, or financial performance, and summarized key analytics and benchmarking analytics reports are delivered to its clients, provided that all contractual performance requirements and other revenue recognition criteria are met. Cloud-based data-driven intervention services are considered performed upon completion, provided that all contractual performance requirements and other revenue recognition criteria are met. The Company also generates revenues from data-driven advisory services. The Company recognizes revenue for data-driven advisory services when persuasive evidence of an arrangement exists, services have been rendered, the contract price is fixed or determinable, and collectability is reasonably assured. The Company enters into arrangements for data-driven advisory services under time and materials, fixed-price, or retainer based contracts. Revenue for time and material contracts is recognized based upon contractually agreed upon billing rates applied to direct labor hours expended plus the costs of other items used in the performance of the contract. Revenue on certain fixed-price contracts is recognized using the proportional performance method. Performance is measured based on the ratio of labor hours incurred to total estimated labor hours. Revenues under certain other fixed-price and retainer based contracts are recognized ratably over the contract period or upon contract completion. Invoices to clients are generated in accordance with the terms of the applicable contract, which may not be directly related to the performance of services. Unbilled receivables are invoiced based upon the achievement of specific events as defined by each contract including deliverables and timetables. Unbilled receivables, if any, are classified as a current asset. Advanced billings to clients in excess of revenue earned are recorded as deferred revenue until the aforementioned revenue recognition criteria are met. The Company also enters into multiple-element software arrangements, which are recognized under ASC 985-605, Software Revenue Recognition , when software subscription licenses are provided to clients. Under these arrangements, the Company provides post-contract support, or PCS, including help desk support and unspecified upgrades. Vendor-specific objective evidence of fair value has not been established for PCS as PCS is not renewed separately from the license fees. As a result, under these subscription software license agreements, the Company recognizes revenue from the license of software ratably over the life of the agreement. The Company begins to recognize revenue upon execution of a signed agreement and delivery of the software, provided that the software license fees are fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company recognizes revenue on perpetual license fees after a non-cancellable license agreement has been signed, the product has been delivered, the fee is fixed or determinable and collectible, and allocates the total fee to multiple elements of their arrangements based on best estimate of selling prices when vendor-specific objective evidence is unavailable. Generally, sales of perpetual licenses are recognized at a point in time, as opposed to over time. Certain of the Company's arrangements entitle a client to receive a refund if the Company fails to satisfy contractually specified performance obligations. The refund is limited to a portion or all of the consideration paid. In this case, revenue is recognized when performance obligations are satisfied. The Company maintains an allowance, charged to revenue, which reflects the Company's estimated future billing adjustments resulting from client concessions or resolutions of billing disputes.
Cost of Revenue	Cost of Revenue —Cost of revenue consists primarily of expenses for employees who provide direct revenue-generating services to clients, including salaries, benefits, discretionary incentive bonus compensation, employment taxes, equity compensation costs, and severance. Cost of revenue also includes expenses associated with the integration and verification of data and other service costs incurred to fulfill the Company's revenue contracts. Cost of revenue does not include allocated amounts for occupancy expense and depreciation and amortization.
Research and Development	Research and Development —Research and development expenses consist primarily of employee-related costs. All such costs are expensed as incurred, except for certain internal use software development costs that are capitalized. Research and development excludes any allocation of occupancy expense, depreciation and amortization.
Selling and Marketing and General and Administrative	Selling and Marketing —Sales and marketing expense consists primarily of employee-related expenses including salaries, benefits, discretionary incentive compensation, employment taxes, severance and equity compensation costs for employees engaged in sales, sales support, business development, and marketing. Sales and marketing expense also includes operating expenses for marketing programs, research, trade shows and brand messages, and public relations costs. Sales and marketing expense excludes any allocation of occupancy expense, depreciation and amortization. General and Administrative —General and administrative expense consists primarily of employee-related expenses including salaries, benefits, discretionary incentive compensation, employment taxes, severance and equity compensation costs, for employees who are responsible for management information systems, administration, human resources, finance, legal, and executive management. General and administrative expense also includes occupancy expenses (including rent, utilities, communications, and facilities maintenance), professional fees, consulting fees, insurance, travel, and other expenses. General and administrative expense excludes any allocation of depreciation and amortization.
Segments	Segments —The Company operates its business as one operating segment. The Company develops cloud-based data analytics and data-driven intervention platforms and provides related services to its clients in order to achieve meaningful insight and improvement in clinical and quality outcomes, utilization, and financial performance. The Company derives substantially all of its revenue from the sale and support of one group of similar products and related services—proprietary datasets, advanced integration technologies, sophisticated predictive analytics, and deep subject matter expertise that enable the Company to provide seamless, end-to-end platforms that bring the benefits of big data and large-scale analytics to clients. Operating segments are defined as components of an enterprise for which separate financial information is available and is evaluated regularly by the Company's chief operating decision maker ("CODM"), in deciding how to allocate resources and in assessing performance. In the process of allocating resources and assessing performance, the Company's CODM, its chief executive officer, reviews financial information presented on a consolidated basis.
Income Taxes	Income Taxes —The Company accounts for income taxes in accordance with Accounting Standards Codification ASC 740, Income Taxes , which prescribes the use of the asset and liability approach to the recognition of deferred tax assets and liabilities related to the expected future tax consequences of events that have been recognized in the Company's financial statements or income tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets when it is more likely than not that a portion or all of a given deferred tax asset will not be realized. In accordance with ASC 740, income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the period plus any change in valuation allowances and (ii) current tax expense, which represents the amount of tax currently payable to or receivable from a taxing authority plus amounts accrued for expected tax contingencies (including both tax and interest). ASC 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those positions to be recognized in the financial statements. The Company continually reviews tax laws, regulations and related guidance in order to properly record any uncertain tax liability positions. The Company adjusts these reserves in light of changing facts and circumstances.
Stock-Based Compensation	Stock-Based Compensation —All stock-based awards, including employee stock option grants, restricted stock unit ("RSU") grants, and restricted stock awards ("RSA"), are recorded at fair value as of the grant date in accordance with ASC 718, Compensation—Stock Compensation , and recognized in the statement of operations over the service period of the applicable award using the straight-line method. The Company determines the fair value of its stock option awards on the date of grant, using the Black-Scholes option pricing model. The assumptions used in calculating the fair value of share-based awards represent management's best estimates. The Company measures RSUs and RSAs that vest upon satisfaction of a service condition, or a liquidity condition if such a condition is applicable, based on the fair market values of the underlying common stock on the dates of grant. RSUs are share awards that, upon vesting, will deliver to the holder shares of the Company's common stock. Compensation expense is recognized based upon the satisfaction of the requisite service and or liquidity condition as of that date, following the straight-line method.
Treasury Stock	Treasury Stock —The Company records treasury stock activities under the cost method whereby the cost of the acquired stock is recorded as treasury stock. The Company's accounting policy upon the formal retirement of treasury stock is to deduct the par value from common stock and to reflect any excess of cost over par value as a reduction to additional paid-in capital (to the extent created by previous issuances of the shares) and then retained earnings.
Deferred Rent	Deferred Rent —Deferred rent consists of rent escalation payment terms, tenant improvement allowances and other incentives received from landlords related to the Company's operating leases for its facilities. Rent escalation represents the difference between actual operating lease payments due and straight-line rent expense, which is recorded by the Company over the term of the lease, including any construction period. The excess is recorded as a deferred credit in the early periods of the lease, when cash payments are generally lower than straight-line rent expense, and is reduced in the later periods of the lease when payments begin to exceed the straight-line expense. Tenant allowances from landlords for tenant improvements are generally comprised of cash received from the landlord as part of the negotiated terms of the lease or reimbursements of moving costs. These cash payments are recorded as deferred rent from landlords and are amortized as a reduction of periodic rent expense, over the term of the applicable lease.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued updated guidance on revenue from contracts with customers. This revenue recognition guidance supersedes existing GAAP guidance, including most industry-specific guidance. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance identifies five steps to apply in achieving this principle. On July 9, 2015, the FASB approved a one year deferral of the effective date of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), to January 1, 2018. ASU 2014-09 may be applied either retrospectively or through the use of a modified-retrospective method. The Company is currently evaluating both methods of adoption as well as the effect ASU 2014-09 will have on the Company's consolidated financial position, results of operations, cash flows and financial disclosures, including whether the Company elects retrospective, or modified retrospective, method adoption. The Company anticipates that this standard may have a material impact on the consolidated financial statements with respect to additional disclosures related to qualitative and quantitative information concerning the nature, amount, timing, and any uncertainty of revenue and cash flows from contracts with customers, the capitalization of costs of commissions, upfront contract costs, and other contract acquisition-based and contract fulfillment costs on the consolidated balance sheets. The company is continuing to assess all potential impacts of the standard, including the impact to the pattern with which revenue is recognized. Early adoption is permitted. In February 2016, the FASB issued ASU. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In general, for lease arrangements exceeding a twelve month term, these arrangements will be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of ASU 2016-02 will be calculated using the applicable incremental borrowing rate at the date of adoption. In addition, ASU 2016-02 requires the use of the modified retrospective method, which will require adjustment to all comparative periods presented in the consolidated financial statements. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and note disclosures. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ("ASU 2016-08"). This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements and note disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09). ASU 2016-09 modifies and intends to improve and simplify several aspects of the accounting for share-based payment awards, including income tax consequences, and classification on the statement of cash flows, therefore the Company early adopted ASU 2016-09 during the fourth quarter of 2016. Early adoption of ASU 2016-09 required the Company to apply its provisions as of January 1, 2016. Amendments related to accounting for excess tax benefits have been adopted prospectively, resulting in recognition of excess tax benefits against income tax expenses rather than additional paid-in capital of approximately $898 for the year ended December 31, 2016. Excess tax benefits for share-based payments are now included in net operating cash rather than net financing cash. The changes have been applied prospectively in accordance with the ASU and prior periods have not been adjusted. The Company elected to change its accounting policy to account for forfeitures as they occur. The change was applied on a modified retrospective basis with a cumulative effect adjustment to retained earnings of approximately $557, net of tax of approximately $200, as of January 1, 2016. The adoption of ASU 2016-09 did not materially impact the Company's consolidated financial position, results of operations, equity or cash flows. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). The update amends the guidance in Accounting Standards Codification 230, Statement of Cash Flows , and clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows with the objective of reducing the existing diversity in practice related to eight specific cash flow issues. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of the useful life of property, plant and equipment	Useful Life Office and computer equipment 3 - 5 years Purchased software 5 years Capitalized software 3 - 5 years Furniture and fixtures 7 years Building 40 years Leasehold improvements * Assets under capital leases * (*) lesser of lease term or economic life
Schedule of amortized life of acquired intangible assets	Useful Life Proprietary software technology 4 - 10 years Trademark 3.5 - 10 years Database 10 years Customer relationships 8 - 15.75 years Non-compete agreements Contractual term In-process research and development Indefinite
Revenue | Credit Concentration Risk
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of concentration risk by factor	Year Ended Revenue: 2016 2015 2014 Client A % % % Client B * * % * Less than 10%
Accounts Receivable | Credit Concentration Risk
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of concentration risk by factor	Accounts receivable from significant clients, those representing 10% or more of total accounts receivable for the dates noted, is summarized below: December 31, Accounts Receivable: 2016 2015 Client A % * Client B * % * Less than 10%

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	12 Months Ended
	Dec. 31, 2016
Creehan Holding Co., Inc.
Schedule of preliminary composition of stated purchase price and fair value of stated purchase price	Share Purchase Agreement purchase price $ Working capital adjustment ) ​ ​ ​ ​ ​ Subtotal Fair value adjustments: Marketability restrictions on equity consideration ) Contingent consideration probability of achievement adjustment ) Post-acquisition compensation expense ) ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of composition of the fair value of the consideration transferred	Cash $ Issuance of Class A common stock Working capital adjustment receivable ) Contingent consideration ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of purchase price allocation to assets acquired and liabilities assumed	Preliminary Cash and cash equivalents $ Accounts receivable Other current assets Property, equipment and capitalized software Intangible assets(1) Goodwill(2) ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ Current liabilities ) Deferred revenue ) ​ ​ ​ ​ ​ Total liabilities assumed ) ​ ​ ​ ​ ​ Net assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Identifiable intangible assets were measured using a combination of an income approach and a market approach. (2) Goodwill is the excess of the consideration transferred over the net assets recognized and represents the future economic benefits, primarily as a result of other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized. The goodwill attributable to the Creehan acquisition is deductible for tax purposes.
Schedule of identified intangible assets	Weighted Recorded Customer relationships 8 years $ Tradename 4 years Technology 4 years In-process Research and Development indefinite ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of revenue and net loss attributable to acquisition	Year Ended Revenue $ Loss before taxes $ )
Schedule of pro forma acquisition	Unaudited Year Ended 2016 2015 Pro forma revenue $ $ Pro forma income before taxes $ $
Avalere Health Inc
Schedule of preliminary composition of stated purchase price and fair value of stated purchase price	Share Purchase Agreement purchase price $ Working capital adjustment ​ ​ ​ ​ ​ Subtotal ​ ​ ​ ​ ​ Fair Value Adjustments: Restricted stock marketability discount ) Performance objectives discount from maximum value ) Post-acquisition compensation expense ) ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of composition of the fair value of the consideration transferred	Cash $ Issuance of Class A common stock Contingent consideration ​ ​ ​ ​ ​ Total fair value purchase price $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of purchase price allocation to assets acquired and liabilities assumed	Preliminary Measurement Final Cash and cash equivalents $ $ — $ Accounts receivable ) Current assets — Property, equipment and capitalized software — Intangible assets(1) Goodwill(2) Deferred income taxes ) Other assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets acquired ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities ) ) Deferred tax liability ) ) ) Deferred revenue ) — ) Other liabilities ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities assumed ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net assets acquired $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Identifiable intangible assets were measured using a combination of an income approach and a market approach. (2) Goodwill is the excess of the consideration transferred over the net assets recognized and represents the future economic benefits, primarily as a result of other assets acquired that could not be individually identified and separately recognized. Goodwill is not amortized and is not deductible for tax purposes.
Schedule of identified intangible assets	Weighted Preliminary Measurement Final Customer relationships 10 years $ $ — $ Tradename 10 years — Technology 5 years Non-compete agreements 3 years — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of revenue and net loss attributable to acquisition	Year Ended Revenue $ Loss before taxes $ )
Schedule of pro forma acquisition	Unaudited Year Ended 2015 2014 Pro forma revenue $ $ Pro forma income before taxes $ $

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
NET INCOME PER SHARE
Schedule of numerators and denominators of the basic and diluted EPS	Year Ended December 31, 2016 2015 2014 Basic Numerator: Net income $ $ $ Undistributed earnings allocated to participating securities — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income attributable to common stockholders—basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share attributable to common stockholders—basic $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted Numerator: Net income attributable to common stockholders—diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: Number of shares used for basic EPS computation Effect of dilutive securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares used in computing net income per share attributable to common stockholders—diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per share attributable to common stockholders—diluted $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
SHORT-TERM INVESTMENTS
Schedule of short-term investments	As of December 31, 2016, short-term investments consisted of the following: Amortized Cost Gross Unrealized Gross Estimated Fair Available-for-sale securities: Corporate notes and bonds $ $ $ ) $ U.S. agency obligations ) U.S. treasury securities ) Commercial paper — ) Certificates of deposit — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total available-for-sale securities $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015, short-term investments consisted of the following: Amortized Cost Gross Unrealized Gross Estimated Fair Available-for-sale securities: Corporate notes and bonds $ $ $ ) $ U.S. agency obligations ) U.S. treasury securities ) Commercial paper — ) Certificates of deposit — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total available-for-sale securities $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of estimated fair value of short-term investments, designated as available-for-sale and classified by the contractual maturity	December 31, 2016 2015 Due in one year or less $ $ Due after one year through three years ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of fair values and gross unrealized losses of available-for-sale securities aggregated by investment category	The following table shows the fair values and the gross unrealized losses of available-for-sale securities that were in a gross unrealized loss position, as of December 31, 2016, aggregated by investment category: Estimated Gross Corporate notes and bonds $ $ ) U.S. agency obligations ) U.S. treasury securities ) Commercial paper ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS
Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis	The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016: Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ $ Short-term investments: Corporate notes and bonds U.S. agency obligations U.S. treasury securities Commercial paper Certificates of deposit Other Current Liabilities: Contingent consideration — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: Level 1 Level 2 Level 3 Total Cash Equivalents: Money market funds $ $ — $ — $ Short-term investments: Corporate notes and bonds — — U.S. agency obligations — — U.S. treasury securities — — Commercial paper — — Certificates of deposit — — Other Current Liabilities: Contingent consideration — — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of financial instruments measured at fair value using unobservable inputs (Level 3)	Fair Value 2016 2015 Balance, beginning of period $ ) $ — Contingent consideration attributable to Avalere acquisition ) Accretion expense (recognized in general and administrative expenses) ) — Settlement (payment) of liability — Contingent consideration attributable to Creehan acquisition ) — ​ ​ ​ ​ ​ ​ ​ ​ Total $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

PROPERTY, EQUIPMENT AND CAPIT32

PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE (Tables)	12 Months Ended
	Dec. 31, 2016
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Schedule of property, equipment and capitalized software	December 31, 2016 2015 Office and computer equipment $ $ Leasehold improvements Purchased software Capitalized software Furniture and fixtures Land Building Work in process ​ ​ ​ ​ ​ ​ ​ ​ Total Less: accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Property, equipment and capitalized software, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
GOODWILL AND INTANGIBLE ASSETS
Summary of the activity related to the carrying value of goodwill	Goodwill as of January 1, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill recorded in connection with the acquisition of Avalere Health, Inc ​ ​ ​ ​ ​ Goodwill as of December 31, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Goodwill adjustments recorded in connection with the acquisition of Avalere Health, Inc $ ) Goodwill recorded in connection with the acquisition of Creehan Holding Co., Inc. ​ ​ ​ ​ ​ Goodwill as of December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of intangible assets	December 31, 2016 Gross Accumulated Net Weighted Proprietary software technologies $ ) $ — — Trademark ) — — Database ) Customer relationships ) Avalere acquisition (see Note 3): Customer Relationships ) Tradename ) Technology ) Non-compete agreements ) Creehan acquisition (see Note 3): Customer Relationships ) Tradename ) Technology ) In-Process R&D — Indefinite-lived ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2015 Gross Accumulated Net Weighted Proprietary software technologies $ $ ) $ — — Trademark ) — — Database ) Customer relationships ) Avalere acquisition (see Note 3): Customer Relationships ) Tradename ) Technology ) Non-compete agreements ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of estimated future amortization expense of intangible assets	Estimated future amortization expense of intangible assets, based upon the Company's intangible assets at December 31, 2016, is as follows: Amount Year ending December 31: 2017 2018 2019 2020 2021 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

CREDIT FACILITIES (Tables)

CREDIT FACILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
CREDIT FACILITIES
Schedule of credit facilities	December 31, December 31, Revolving Credit Facility $ — $ — Term Loan Facility ​ ​ ​ ​ ​ ​ ​ ​ Total Credit Facilities Less: current portion ​ ​ ​ ​ ​ ​ ​ ​ Non-current Credit Facilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule showing maturity of the credit facilities	Amount 2017 2018 2019 ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES
Schedule of future non cancellable lease payments	Future non-cancellable lease payments as of December 31, 2016 are as follows: Amount Year ending December 31, 2017 $ 2018 2019 2020 2021 — ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2016
STOCK-BASED COMPENSATION
Schedule of assumptions used to estimate the fair value of each option grant	December 31, 2016 2015 2014 Expected stock price volatility — % — % % Expected term —Years —Years 6.5 Years Expected dividend yield — — — Risk-free interest rate — % — % % Weighted-average fair value of underlying common stock $ — $ — $
Schedule of stock option activity	Number of Weighted- Weighted- Weighted- Aggregate Balance at January 1, 2014 $ $ Stock options granted $ $ Stock options exercised ) $ Stock options cancelled ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options granted — Stock options exercised ) $ Stock options cancelled ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options granted — — Stock options exercised ) $ Stock options cancelled ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2016 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable at December 31, 2016 $ $ Vested and expected to vest at December 31, 2016 $ $
Schedule of RSUs granted and unvested	RSUs Outstanding Number of Weighted RSUs granted and unvested at January 1, 2015 $ RSUs granted during 2015 RSUs vested during 2015 ) RSUs forfeited during 2015 ) ​ ​ ​ ​ ​ ​ ​ ​ RSUs granted and unvested at December 31, 2015 $ RSUs granted during 2016 — — RSUs vested during 2016 ) RSUs forfeited during 2016 ) ​ ​ ​ ​ ​ ​ ​ ​ RSUs granted and unvested at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of RSAs granted and unvested	RSAs Outstanding Number of Weighted RSAs granted and unvested at January 1, 2015 — $ — RSAs granted during 2015 RSAs vested during 2015 — — RSAs forfeited during 2015 ) ​ ​ ​ ​ ​ ​ ​ ​ RSAs granted and unvested at December 31, 2015 $ RSAs granted during 2016 RSAs vested during 2016 ) RSAs forfeited during 2016 ) ​ ​ ​ ​ ​ ​ ​ ​ RSAs granted and unvested at December 31, 2016 $ ​ ​ ​ ​ ​ ​ ​ ​

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAXES
Schedule of provision for income taxes	Year Ended December 31, 2016 2015 2014 Current: Federal $ $ $ State Foreign (Puerto Rico) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred: Federal ) State ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred provision ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of the provision for income taxes to the amount computed by applying the federal statutory rate to income before income taxes	Year Ended December 31, 2016 2015 2014 Expected federal income tax % $ % $ % $ State income taxes, net of federal income tax effect Permanent items ) ) Research and development tax credits ) ) ) ) ) ) Excess tax benefits and share-based compensation ) ) — — — — Acquisition-related deferred tax adjustments ) ) — — — — Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense % $ % $ % $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of components of the Company's deferred tax assets and liabilities	December 31, 2016 2015 Components of deferred tax assets and liabilities Deferred tax assets: Accrued expenses and reserves $ $ Stock-based compensation Deferred rent Net operating loss carryforwards Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities: Intangibles $ $ Property, equipment and capitalized software Prepaids and other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities before valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ Valuation Allowance — ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liabilities $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of unrecognized tax benefits	2016 2015 2014 Uncertain tax position January 1 $ — $ — $ — Gross increase in tax positions in prior period — — Gross decrease in tax positions in prior period — — — Gross increase in tax positions from stock acquisitions — — — Settlement — — — Lapse of statute of limitations — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Uncertain tax position at December 31 $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

NATURE OF OPERATIONS (Details)

NATURE OF OPERATIONS (Details)	Jan. 14, 2015$ / sharesshares	Dec. 31, 2016$ / sharesshares	Dec. 31, 2015$ / sharesshares
NATURE OF OPERATIONS
Common stock, authorized shares | shares	900,000,000	900,000,000	900,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.000005	$ 0.000005	$ 0.000005
Class A Common
NATURE OF OPERATIONS
Conversion ratio	5
Common stock, authorized shares | shares	750,000,000	750,000,000	750,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.000005	$ 0.000005
Class B Common
NATURE OF OPERATIONS
Conversion ratio	5
Common stock, authorized shares | shares	150,000,000	150,000,000	150,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.000005	$ 0.000005

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Highly liquid investments, maximum maturity term	3 months

SUMMARY OF SIGNIFICANT ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Short-term Investments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Other-than-temporary impairments	$ 0
Certain short-term investments, term	12 months

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit Risk - Revenue (Details) - Revenue - Credit Concentration Risk	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Client A
Concentrations of Credit Risk
Concentration risk (as a percent)	17.00%	12.00%	12.00%
Client B
Concentrations of Credit Risk
Concentration risk (as a percent)			11.00%
Client B | Maximum
Concentrations of Credit Risk
Concentration risk (as a percent)	10.00%	10.00%

SUMMARY OF SIGNIFICANT ACCOUN42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit Risk - Accounts Receivable (Details) - Accounts Receivable - Credit Concentration Risk	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Client A
Concentrations of Credit Risk
Concentration risk (as a percent)	14.00%
Client A | Maximum
Concentrations of Credit Risk
Concentration risk (as a percent)		10.00%
Client B
Concentrations of Credit Risk
Concentration risk (as a percent)		10.00%
Client B | Maximum
Concentrations of Credit Risk
Concentration risk (as a percent)	10.00%

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Equipment and Capitalized Software, Net (Details)	12 Months Ended
	Dec. 31, 2016
Office and computer equipment | Minimum
Property, Equipment and Capitalized Software, net
Useful life	3 years
Office and computer equipment | Maximum
Property, Equipment and Capitalized Software, net
Useful life	5 years
Purchased software
Property, Equipment and Capitalized Software, net
Useful life	5 years
Capitalized software | Minimum
Property, Equipment and Capitalized Software, net
Useful life	3 years
Capitalized software | Maximum
Property, Equipment and Capitalized Software, net
Useful life	5 years
Furniture and fixtures
Property, Equipment and Capitalized Software, net
Useful life	7 years
Building
Property, Equipment and Capitalized Software, net
Useful life	40 years

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets - Useful Lives (Details)	12 Months Ended
	Dec. 31, 2016
Database
Intangible Assets
Useful life	10 years
Minimum | Proprietary software technologies
Intangible Assets
Useful life	4 years
Minimum | Trademark
Intangible Assets
Useful life	3 years 6 months
Minimum | Customer relationships
Intangible Assets
Useful life	8 years
Maximum | Proprietary software technologies
Intangible Assets
Useful life	10 years
Maximum | Trademark
Intangible Assets
Useful life	10 years
Maximum | Customer relationships
Intangible Assets
Useful life	15 years 9 months

SUMMARY OF SIGNIFICANT ACCOUN45

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets - Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Impairment of intangible assets
Impairment of intangible assets	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUN46

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)segmentitem	Dec. 31, 2015segmentitem
Goodwill
Number of operating segments | segment	1	1
Number of reporting units | item	3	2
Impairment of goodwill | $	$ 0

SUMMARY OF SIGNIFICANT ACCOUN47

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Valuation of Long-Lived Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation of Long-Lived Assets
Impairment charge on long-lived assets	$ 0	$ 0	$ 255
General and administrative
Valuation of Long-Lived Assets
Impairment charge on long-lived assets			$ 255

SUMMARY OF SIGNIFICANT ACCOUN48

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segments (Details)	12 Months Ended
	Dec. 31, 2016segmentitem	Dec. 31, 2015segmentitem
Segments
Number of operating segments | segment	1	1
Number of groups of similar products and related services | item	1	1

SUMMARY OF SIGNIFICANT ACCOUN49

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Recently Issued Accounting Standards
Excess tax benefits from share-based compensation		$ 18,608
Accounting Standards Update 2016-09 | Early Adoption
Recently Issued Accounting Standards
Excess tax benefits from share-based compensation	$ 898
Cumulative effect adjustment to retained earnings, before tax	557
Cumulative effect adjustment to retained earnings, tax	$ 200

BUSINESS COMBINATIONS - General

BUSINESS COMBINATIONS - General Disclosures (Details) $ in Thousands	Oct. 03, 2016USD ($)shares	Sep. 01, 2015USD ($)clientshares
Creehan Holding Co., Inc.
BUSINESS COMBINATIONS
Share Purchase Agreement purchase price	$ 130,000
Consideration paid in cash	89,370
Issuance of Class A common stock	$ 7,764
Issuance of Class A common stock (in shares) | shares	651,355
Avalere Health Inc
BUSINESS COMBINATIONS
Share Purchase Agreement purchase price		$ 140,000
Consideration paid in cash		118,755
Issuance of Class A common stock		$ 3,847
Issuance of common stock related to business combination (in shares) | shares		235,737
Minimum | Avalere Health Inc
BUSINESS COMBINATIONS
Pharmaceutical and life sciences clients | client		200

BUSINESS COMBINATIONS - Stated

BUSINESS COMBINATIONS - Stated Purchase Price and Fair Value of the Stated Purchase Price (Details) - USD ($) $ in Thousands	Oct. 03, 2016	Sep. 01, 2015
Creehan Holding Co., Inc.
Composition of the stated purchase price and fair value of the stated purchase price
Share Purchase Agreement purchase price	$ 130,000
Working capital adjustment	(247)
Subtotal	129,753
Fair Value Adjustments:
Marketability restrictions on equity consideration	(2,236)
Contingent consideration probability of achievement adjustment	(12,400)
Post-acquisition compensation expense	(5,952)
Total fair value purchase price	$ 109,165
Avalere Health Inc
Composition of the stated purchase price and fair value of the stated purchase price
Share Purchase Agreement purchase price		$ 140,000
Working capital adjustment		3,112
Subtotal		143,112
Fair Value Adjustments:
Restricted stock marketability discount		(1,153)
Performance objectives discount from maximum value		(700)
Post-acquisition compensation expense		(16,357)
Total fair value purchase price		$ 124,902

BUSINESS COMBINATIONS - Fair Va

BUSINESS COMBINATIONS - Fair Value of Consideration Transferred (Details) - USD ($) $ in Thousands	Oct. 03, 2016	Sep. 01, 2015
Creehan Holding Co., Inc.
Composition of the purchase price
Cash	$ 89,370
Issuance of Class A common stock	7,764
Working capital adjustment receivable	(569)
Contingent consideration	12,600
Total fair value purchase price	$ 109,165
Avalere Health Inc
Composition of the purchase price
Cash		$ 118,755
Issuance of Class A common stock		3,847
Contingent consideration		2,300
Total fair value purchase price		$ 124,902

BUSINESS COMBINATIONS - Purchas

BUSINESS COMBINATIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Preliminary Recording of Assets Acquired and Liabilities Assumed
Goodwill	$ 184,557	$ 137,733	$ 62,269
Creehan Holding Co., Inc.
Preliminary Recording of Assets Acquired and Liabilities Assumed
Cash and cash equivalents	861
Accounts receivable	9,048
Other current assets	171
Property, equipment and capitalized software	641
Intangible assets	50,900
Goodwill	50,987
Total assets acquired	112,608
Current liabilities	(1,007)
Deferred revenue	(2,436)
Total liabilities assumed	(3,443)
Net assets acquired	$ 109,165
Avalere Health Inc
Preliminary Recording of Assets Acquired and Liabilities Assumed
Cash and cash equivalents		4,037
Accounts receivable		12,891
Current assets		1,958
Property, equipment and capitalized software		3,248
Intangible assets		57,820
Goodwill		75,464
Deferred income taxes		723
Other assets		224
Total assets acquired		156,365
Current liabilities		(10,946)
Deferred tax liability		(18,363)
Deferred revenue		(1,600)
Other liabilities		(554)
Total liabilities assumed		(31,463)
Net assets acquired		124,902
Avalere Health Inc | Preliminary Recorded Value
Preliminary Recording of Assets Acquired and Liabilities Assumed
Cash and cash equivalents		4,037
Accounts receivable		13,011
Current assets		1,958
Property, equipment and capitalized software		3,248
Intangible assets		57,520
Goodwill		74,238
Deferred income taxes		947
Other assets		224
Total assets acquired		155,183
Current liabilities		(11,054)
Deferred tax liability		(17,677)
Deferred revenue		(1,600)
Other liabilities		(554)
Total liabilities assumed		(30,885)
Net assets acquired		124,298
Avalere Health Inc | Measurement Period Adjustments
Preliminary Recording of Assets Acquired and Liabilities Assumed
Accounts receivable		(120)
Intangible assets		300
Goodwill		1,226
Deferred income taxes		(224)
Total assets acquired		1,182
Current liabilities		108
Deferred tax liability		(686)
Total liabilities assumed		(578)
Net assets acquired		$ 604

BUSINESS COMBINATIONS - Identif

BUSINESS COMBINATIONS - Identified Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Creehan Holding Co., Inc.
Identified intangible assets
Total intangible assets	$ 50,900
Creehan Holding Co., Inc. | Customer relationships
Identified intangible assets
Weighted Average Useful Life	8 years
Total intangible assets	$ 36,500
Creehan Holding Co., Inc. | Tradename
Identified intangible assets
Weighted Average Useful Life	4 years
Total intangible assets	$ 4,000
Creehan Holding Co., Inc. | Technology
Identified intangible assets
Weighted Average Useful Life	4 years
Total intangible assets	$ 8,800
Creehan Holding Co., Inc. | In-Process R&D
Identified intangible assets
Total intangible assets	$ 1,600
Avalere Health Inc
Identified intangible assets
Total intangible assets		$ 57,820
Avalere Health Inc | Customer relationships
Identified intangible assets
Weighted Average Useful Life		10 years
Total intangible assets		$ 45,800
Avalere Health Inc | Tradename
Identified intangible assets
Weighted Average Useful Life		10 years
Total intangible assets		$ 8,300
Avalere Health Inc | Technology
Identified intangible assets
Weighted Average Useful Life		5 years
Total intangible assets		$ 2,900
Avalere Health Inc | Non-compete agreements
Identified intangible assets
Weighted Average Useful Life		3 years
Total intangible assets		$ 820
Preliminary Recorded Value | Avalere Health Inc
Identified intangible assets
Total intangible assets		57,520
Preliminary Recorded Value | Avalere Health Inc | Customer relationships
Identified intangible assets
Total intangible assets		45,800
Preliminary Recorded Value | Avalere Health Inc | Tradename
Identified intangible assets
Total intangible assets		8,300
Preliminary Recorded Value | Avalere Health Inc | Technology
Identified intangible assets
Total intangible assets		2,600
Preliminary Recorded Value | Avalere Health Inc | Non-compete agreements
Identified intangible assets
Total intangible assets		820
Measurement Period Adjustments | Avalere Health Inc
Identified intangible assets
Total intangible assets		300
Measurement Period Adjustments | Avalere Health Inc | Technology
Identified intangible assets
Total intangible assets		$ 300

BUSINESS COMBINATIONS - Acquisi

BUSINESS COMBINATIONS - Acquisition-related Costs (Details) - General and administrative - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Creehan Holding Co., Inc.
Acquisition-related costs
Acquisition-related costs	$ 1,622
Avalere Health Inc
Acquisition-related costs
Acquisition-related costs		$ 1,483

BUSINESS COMBINATIONS - Results

BUSINESS COMBINATIONS - Results of Acquiree (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Creehan Holding Co., Inc.
Avalere Results
Revenue	$ 8,106
Loss before taxes	$ (976)
Avalere Health Inc
Avalere Results
Revenue		$ 17,492
Loss before taxes		$ (29)

BUSINESS COMBINATIONS - Pro For

BUSINESS COMBINATIONS - Pro Forma Impact (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Creehan Holding Co., Inc.
Pro Forma Impact of Acquisition
Pro forma revenue	$ 453,613	$ 464,646
Pro forma income before taxes	$ 44,203	115,331
Avalere Health Inc
Pro Forma Impact of Acquisition
Pro forma revenue		469,784	$ 408,671
Pro forma income before taxes		$ 108,977	$ 92,635

NET INCOME PER SHARE - General

NET INCOME PER SHARE - General Information (Details)	12 Months Ended
	Dec. 31, 2016Vote
Class A Common
Common stock
Votes per share	1
Class B Common
Common stock
Votes per share	10

NET INCOME PER SHARE - Tabular

NET INCOME PER SHARE - Tabular Disclosure (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic
Net income	$ 27,104	$ 66,063	$ 65,352
Undistributed earnings allocated to participating securities	161	49
Net income attributable to common stockholders - basic	$ 26,943	$ 66,014	$ 65,352
Weighted average shares used in computing net income per share attributable to common stockholders - basic	150,048	145,745	130,770
Net income per share attributable to common stockholders - Basic	$ 0.18	$ 0.45	$ 0.50
Diluted
Net income attributable to common stockholders - diluted	$ 26,943	$ 66,014	$ 65,352
Weighted average shares used in computing net income per share attributable to common stockholders - basic	150,048	145,745	130,770
Effect of dilutive securities	907	2,530	2,519
Weighted average shares used in computing net income per share attributable to common stockholders - diluted	150,955	148,275	133,289
Net income per share attributable to common stockholders - Diluted	$ 0.18	$ 0.45	$ 0.49

NET INCOME PER SHARE - Anti-dil

NET INCOME PER SHARE - Anti-dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Equity awards
NET INCOME PER SHARE
Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive	44	645	1,234

SHORT-TERM INVESTMENTS - Availa

SHORT-TERM INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale securities:
Amortized Cost	$ 446,349	$ 616,845
Gross Unrealized Gains	65	25
Gross Unrealized Losses	(1,099)	(2,740)
Estimated Fair Value	445,315	614,130
Corporate notes and bonds
Available-for-sale securities:
Amortized Cost	349,571	390,185
Gross Unrealized Gains	36	12
Gross Unrealized Losses	(918)	(2,321)
Estimated Fair Value	348,689	387,876
U.S. agency obligations
Available-for-sale securities:
Amortized Cost	34,864	121,521
Gross Unrealized Gains	22	11
Gross Unrealized Losses	(78)	(203)
Estimated Fair Value	34,808	121,329
U.S. treasury securities
Available-for-sale securities:
Amortized Cost	53,681	60,362
Gross Unrealized Gains	6	2
Gross Unrealized Losses	(100)	(179)
Estimated Fair Value	53,587	60,185
Commercial paper
Available-for-sale securities:
Amortized Cost	6,312	36,849
Gross Unrealized Losses	(3)	(28)
Estimated Fair Value	6,309	36,821
Certificates of deposit
Available-for-sale securities:
Amortized Cost	1,921	7,928
Gross Unrealized Gains	1
Gross Unrealized Losses		(9)
Estimated Fair Value	$ 1,922	$ 7,919

SHORT-TERM INVESTMENTS - Estima

SHORT-TERM INVESTMENTS - Estimated Fair Value by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
SHORT-TERM INVESTMENTS
Due in one year or less	$ 176,696	$ 206,679
Due after one year through three years	268,619	407,451
Total	$ 445,315	$ 614,130

SHORT-TERM INVESTMENTS - Other-

SHORT-TERM INVESTMENTS - Other-than-temporary Impairments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
SHORT-TERM INVESTMENTS
Other-than-temporary impairments	$ 0

SHORT-TERM INVESTMENTS - Fair V

SHORT-TERM INVESTMENTS - Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	$ 386,790
Gross Unrealized Losses	(1,099)
Corporate notes and bonds
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	314,657
Gross Unrealized Losses	(918)
U.S. agency obligations
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	17,771
Gross Unrealized Losses	(78)
U.S. treasury securities
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	49,376
Gross Unrealized Losses	(100)
Commercial paper
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	4,986
Gross Unrealized Losses	$ (3)

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Short-term investments:
Short-term investments	$ 445,315	$ 614,130
Corporate notes and bonds
Short-term investments:
Short-term investments	348,689	387,876
U.S. agency obligations
Short-term investments:
Short-term investments	34,808	121,329
U.S. treasury securities
Short-term investments:
Short-term investments	53,587	60,185
Commercial paper
Short-term investments:
Short-term investments	6,309	36,821
Certificates of deposit
Short-term investments:
Short-term investments	1,922	7,919
Recurring
Total
Total	476,823	614,351
Recurring | Money market funds
Cash Equivalents:
Cash equivalents	44,108	2,521
Recurring | Level 1
Total
Total	44,108	2,521
Recurring | Level 1 | Money market funds
Cash Equivalents:
Cash equivalents	44,108	2,521
Recurring | Level 2
Total
Total	445,315	614,130
Recurring | Level 3
Total
Total	(12,600)	(2,300)
Recurring | Contingent consideration
Other Current Liabilities:
Contingent consideration	(12,600)	(2,300)
Recurring | Contingent consideration | Level 3
Other Current Liabilities:
Contingent consideration	(12,600)	(2,300)
Recurring | Corporate notes and bonds
Short-term investments:
Short-term investments	348,689	387,876
Recurring | Corporate notes and bonds | Level 2
Short-term investments:
Short-term investments	348,689	387,876
Recurring | U.S. agency obligations
Short-term investments:
Short-term investments	34,808	121,329
Recurring | U.S. agency obligations | Level 2
Short-term investments:
Short-term investments	34,808	121,329
Recurring | U.S. treasury securities
Short-term investments:
Short-term investments	53,587	60,185
Recurring | U.S. treasury securities | Level 2
Short-term investments:
Short-term investments	53,587	60,185
Recurring | Commercial paper
Short-term investments:
Short-term investments	6,309	36,821
Recurring | Commercial paper | Level 2
Short-term investments:
Short-term investments	6,309	36,821
Recurring | Certificates of deposit
Short-term investments:
Short-term investments	1,922	7,919
Recurring | Certificates of deposit | Level 2
Short-term investments:
Short-term investments	$ 1,922	$ 7,919

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value Measurements Using Unobservable Inputs (Level 3)
Acquisition-related contingent consideration payment	$ (2,300)
Level 3
Fair Value Measurements Using Unobservable Inputs (Level 3)
Balance, beginning of period	(2,300)
Accretion expense (recognized in general and Administrative expenses)	(706)
Settlement (payment) of liability	3,006
Total	(12,600)	$ (2,300)
Level 3 | Avalere Health Inc
Fair Value Measurements Using Unobservable Inputs (Level 3)
Acquisition-related contingent consideration payment		$ (2,300)
Level 3 | Creehan Holding Co., Inc.
Fair Value Measurements Using Unobservable Inputs (Level 3)
Acquisition-related contingent consideration payment	$ (12,600)

PROPERTY, EQUIPMENT AND CAPIT67

PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE - Tabular Information (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	$ 164,864	$ 126,711
Less: accumulated depreciation and amortization	(88,444)	(61,680)
Property, equipment and capitalized software, net	76,420	65,031
Office and computer equipment
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	42,530	30,286
Leasehold improvements
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	12,480	12,428
Purchased software
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	14,421	12,351
Capitalized software
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	83,877	60,735
Furniture and fixtures
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	5,403	5,391
Land
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	390	390
Building
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	1,797	1,797
Work in process
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Total	$ 3,966	$ 3,333

PROPERTY, EQUIPMENT AND CAPIT68

PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE - Leased Office Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Property, equipment and capitalized software, net	$ 76,420	$ 65,031
Assets held under capital leases
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Property, equipment and capitalized software, net	$ 734	$ 734

PROPERTY, EQUIPMENT AND CAPIT69

PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE - Depreciation and Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Depreciation and amortization
Depreciation expense	$ 28,078	$ 19,221	$ 15,512
Amortization of capital leases	$ 124	$ 118	$ 133

PROPERTY, EQUIPMENT AND CAPIT70

PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE - Capitalized Software Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Property, equipment and capitalized software, gross	$ 164,864	$ 126,711
Capitalized software and work in process
PROPERTY, EQUIPMENT AND CAPITALIZED SOFTWARE
Property, equipment and capitalized software, gross	$ 40,945	$ 38,165

GOODWILL AND INTANGIBLE ASSET71

GOODWILL AND INTANGIBLE ASSETS - Goodwill - Tabular Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of the activity related to the carrying value of goodwill
Goodwill at beginning of period	$ 137,733	$ 62,269
Goodwill at end of period	184,557	137,733
Avalere Health Inc
Summary of the activity related to the carrying value of goodwill
Goodwill at beginning of period	75,464
Goodwill adjustments in connection with the acquisition	(4,163)
Goodwill recorded in connection with the acquisition		75,464
Goodwill at end of period		$ 75,464
Creehan Holding Co., Inc.
Summary of the activity related to the carrying value of goodwill
Goodwill recorded in connection with the acquisition	50,987
Goodwill at end of period	$ 50,987

GOODWILL AND INTANGIBLE ASSET72

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets - Tabular Information (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets
Gross	$ 145,307	$ 94,407
Accumulated Amortization	(41,758)	(32,552)
Total	103,549	61,855
In-Process R&D | Creehan Holding Co., Inc.
Intangible Assets
Gross	1,600
Total	1,600
Proprietary software technologies
Intangible Assets
Gross	16,077	16,077
Accumulated Amortization	(16,077)	(16,077)
Total	0	0
Trademark
Intangible Assets
Gross	360	360
Accumulated Amortization	(360)	(360)
Database
Intangible Assets
Gross	6,500	6,500
Accumulated Amortization	(4,713)	(4,097)
Total	1,787	2,403
Customer relationships
Intangible Assets
Gross	13,650	13,650
Accumulated Amortization	(10,304)	(9,931)
Total	3,346	3,719
Customer relationships | Avalere Health Inc
Intangible Assets
Gross	45,800	45,800
Accumulated Amortization	(6,107)	(1,526)
Total	39,693	44,274
Customer relationships | Creehan Holding Co., Inc.
Intangible Assets
Gross	36,500
Accumulated Amortization	(1,147)
Total	35,353
Tradename | Avalere Health Inc
Intangible Assets
Gross	8,300	8,300
Accumulated Amortization	(1,107)	(277)
Total	7,193	8,023
Tradename | Creehan Holding Co., Inc.
Intangible Assets
Gross	4,000
Accumulated Amortization	(250)
Total	3,750
Technology | Avalere Health Inc
Intangible Assets
Gross	2,900	2,900
Accumulated Amortization	(773)	(193)
Total	2,127	2,707
Technology | Creehan Holding Co., Inc.
Intangible Assets
Gross	8,800
Accumulated Amortization	(556)
Total	8,244
Non-compete agreements | Avalere Health Inc
Intangible Assets
Gross	820	820
Accumulated Amortization	(364)	(91)
Total	$ 456	$ 729

GOODWILL AND INTANGIBLE ASSET73

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets - Weighted Average Remaining Useful Life (Details) - Weighted average	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Database
Intangible Assets
Weighted Average Remaining Useful Life	2 years 9 months 18 days	3 years 9 months 18 days
Customer relationships
Intangible Assets
Weighted Average Remaining Useful Life	8 years 4 months 24 days	9 years 4 months 24 days
Avalere Health Inc | Customer relationships
Intangible Assets
Weighted Average Remaining Useful Life	8 years 9 months 18 days	9 years 9 months 18 days
Avalere Health Inc | Tradename
Intangible Assets
Weighted Average Remaining Useful Life	8 years 9 months 18 days	9 years 9 months 18 days
Avalere Health Inc | Technology
Intangible Assets
Weighted Average Remaining Useful Life	3 years 8 months 12 days	4 years 8 months 12 days
Avalere Health Inc | Non-compete agreements
Intangible Assets
Weighted Average Remaining Useful Life	1 year 8 months 12 days	2 years 8 months 12 days
Creehan Holding Co., Inc. | Customer relationships
Intangible Assets
Weighted Average Remaining Useful Life	7 years 10 months 24 days
Creehan Holding Co., Inc. | Tradename
Intangible Assets
Weighted Average Remaining Useful Life	3 years 9 months 18 days
Creehan Holding Co., Inc. | Technology
Intangible Assets
Weighted Average Remaining Useful Life	3 years 9 months 18 days

GOODWILL AND INTANGIBLE ASSET74

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets
Intangible assets, net	$ 103,549	$ 61,855
Proprietary software technologies
Intangible Assets
Intangible assets, net	$ 0	$ 0
Maximum | Proprietary software technologies
Intangible Assets
Useful life	10 years

GOODWILL AND INTANGIBLE ASSET75

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortization expense
Amortization expense	$ 9,206	$ 3,412	$ 4,368

GOODWILL AND INTANGIBLE ASSET76

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Estimated future amortization expense of intangible assets
2,017	$ 15,069
2,018	14,978
2,019	14,634
2,020	13,153
2,021	10,366
Thereafter	35,349
Total	$ 103,549	$ 61,855

CREDIT FACILITIES - Maximum Pri

CREDIT FACILITIES - Maximum Principal Amount (Details) - Unsecured debt $ in Thousands	Sep. 19, 2014USD ($)
Line of Credit
Credit Facilities
Maximum principal amount	$ 400,000
Term Loan
Credit Facilities
Maximum principal amount	300,000
Revolving Credit Facility
Credit Facilities
Maximum principal amount	$ 100,000

CREDIT FACILITIES - Tabular Inf

CREDIT FACILITIES - Tabular Information (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Credit Facilities
Total Credit Facilities	$ 266,250	$ 281,250
Less: current portion	30,000	15,000
Non-current Credit Facilities	236,250	266,250
Unsecured debt | Term Loan
Credit Facilities
Total Credit Facilities	$ 266,250	$ 281,250

CREDIT FACILITIES - Borrowing R

CREDIT FACILITIES - Borrowing Rate (Details)	12 Months Ended
	Dec. 31, 2016
Unsecured debt | Line of Credit | LIBOR
Credit Facilities
Basis spread on variable rate	1.25%

CREDIT FACILITIES - Covenants (

CREDIT FACILITIES - Covenants (Details) $ in Thousands	Dec. 31, 2016USD ($)
Unsecured debt | Line of Credit
Credit Facilities
Minimum cash and cash equivalents balance	$ 50,000

CREDIT FACILITIES - Scheduled M

CREDIT FACILITIES - Scheduled Maturity of Credit Facilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Scheduled maturity of the Credit Facilities
Total Credit Facilities	$ 266,250	$ 281,250
Unsecured debt | Line of Credit
Scheduled maturity of the Credit Facilities
2,017	30,000
2,018	45,000
2,019	191,250
Total Credit Facilities	$ 266,250

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Future Non-cancellable Lease Payment Schedule (Details) $ in Thousands	Dec. 31, 2016USD ($)
Future non cancellable lease payments
2,017	$ 8,292
2,018	7,111
2,019	3,124
2,020	353
Total	$ 18,880

COMMITMENTS AND CONTINGENCIES83

COMMITMENTS AND CONTINGENCIES - Operating Lease Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Leases
Rent expense	$ 8,925	$ 7,178	$ 7,438

COMMITMENTS AND CONTINGENCIES84

COMMITMENTS AND CONTINGENCIES - Deferred Rent Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Operating Leases
Deferred rent credit	$ 2,473	$ 3,243

COMMITMENTS AND CONTINGENCIES85

COMMITMENTS AND CONTINGENCIES - Capital Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Capital Leases
Capital lease obligations	$ 330	$ 405

COMMITMENTS AND CONTINGENCIES86

COMMITMENTS AND CONTINGENCIES - Letter of Credit (Details) $ in Thousands	Dec. 31, 2015USD ($)
Letter of Credit
Outstanding letter of credit	$ 0

COMMITMENTS AND CONTINGENCIES87

COMMITMENTS AND CONTINGENCIES - Legal Proceedings (Details) - Unsealing relator's civil false claims act qui tam complaint in matter of us. ex rel. Benjamin Poehling.	Feb. 16, 2017defendant
Legal Proceedings
Number of defendants	15
Number of defendants intervened by government	2

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Options - Shares Authorized (Details) - Stock options	12 Months Ended
	Dec. 31, 2009shares
Stock Options
Number of shares authorized	10,275,000
Purchase period	10 years

STOCK-BASED COMPENSATION - St89

STOCK-BASED COMPENSATION - Stock Options - Stock Reserved for Future Issuance (Details)	Dec. 31, 2016shares
Omnibus Incentive Plan 2015 | Class A Common
Stock Options
Shares reserved for future issuance	7,335,430

STOCK-BASED COMPENSATION - St90

STOCK-BASED COMPENSATION - Stock Options - Fair Value Assumptions (Details) - Stock options - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair value assumptions
Expected stock price volatility			42.90%
Expected term			6 years 6 months
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate			2.10%
Weighted average
Fair value assumptions
Weighted-average fair value of underlying common stock			$ 21.68

STOCK-BASED COMPENSATION - St91

STOCK-BASED COMPENSATION - Stock Options - Activity (Details) - Stock options - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares Outstanding
Balance (in shares)	3,224,074	6,451,275	5,909,535
Stock options granted (in shares)			1,644,720
Stock options exercised (in shares)	(818,909)	(3,222,201)	(186,970)
Stock options cancelled (in shares)	(220,884)	(5,000)	(916,010)
Balance (in shares)	2,184,281	3,224,074	6,451,275	5,909,535
Exercisable (in shares)	1,031,127
Vested and expected to vest (in shares)	2,184,281
Weighted-Average Exercise Price
Balance (in dollars per share)	$ 7.40	$ 5.97	$ 5.69
Stock options granted (in dollars per share)			7.58
Stock options exercised (in dollars per share)	7.57	4.55	3.85
Stock options cancelled (in dollars per share)	7.58	6.77	7.45
Balance (in dollars per share)	7.32	$ 7.40	$ 5.97	$ 5.69
Exercisable (in dollars per share)	7.40
Vested and expected to vest (in dollars per share)	$ 7.32
Stock option activity
Stock options granted - Weighted-Average Grant-date Fair Value of Underlying Common Stock			$ 14.28
Balance - Weighted-Average Remaining Contractual Life (in years)	5 years 8 months 12 days	6 years 6 months	5 years 8 months 12 days	5 years 8 months 12 days
Exercisable - Weighted-Average Remaining Contractual Life (in years)	5 years 8 months 12 days
Vested and expected to vest - Weighted-Average Remaining Contractual Life (in years)	5 years 8 months 12 days
Balance - Aggregate Intrinsic Value	$ 6,514,000	$ 37,589,000	$ 101,318,000	$ 10,471,000
Exercisable - Aggregate Intrinsic Value	2,995,000
Vested and expected to vest - Aggregate Intrinsic Value	$ 6,514,000

STOCK-BASED COMPENSATION - St92

STOCK-BASED COMPENSATION - Stock Options - Grant-date Fair Value (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock options
Fair value of grants	$ 0	$ 0	$ 14,922
Weighted average fair value of grants (in dollars per share)	$ 0	$ 0	$ 9.07

STOCK-BASED COMPENSATION - St93

STOCK-BASED COMPENSATION - Stock Options - Unrecognized Compensation Expense (Details) - Stock options $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Unrecognized compensation expense
Unrecognized stock compensation (in dollars)	$ 5,911
Expected weighted-average recognition period for compensation expense	2 years 3 months 18 days

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Units - General Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 05, 2015	Nov. 13, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Restricted Stock Units
Stock-based compensation			$ 10,054	$ 7,415	$ 2,894
Restricted stock units
Restricted Stock Units
Granted (in shares)	76,273	488,780		76,273
Vesting period	5 years
Grant date fair value	$ 2,337	$ 9,722
Grant date fair value (in dollars per share)	$ 30.64	$ 19.89		$ 30.64
Service period			5 years
Period following IPO required for satisfaction of liquidity condition			6 months
Stock-based compensation					$ 0

STOCK-BASED COMPENSATION - Re95

STOCK-BASED COMPENSATION - Restricted Stock Units - Activity (Details) - Restricted stock units - $ / shares	Mar. 05, 2015	Nov. 13, 2014	Dec. 31, 2016	Dec. 31, 2015
Number of RSUs
Granted and unvested (in shares)			455,409	488,780
Granted (in shares)	76,273	488,780		76,273
Vested (in shares)			(95,131)	(94,784)
Forfeited (in shares)			(66,789)	(14,860)
Granted and unvested (in shares)			293,489	455,409
Weighted Average Fair Value Per Unit
Granted and unvested (in dollars per share)			$ 21.69	$ 19.89
Granted (in dollars per share)	$ 30.64	$ 19.89		30.64
Vested (in dollars per share)			21.60	19.89
Forfeited (in dollars per share)			21.11	19.89
Granted and unvested (in dollars per share)			$ 21.85	$ 21.69

STOCK-BASED COMPENSATION - Re96

STOCK-BASED COMPENSATION - Restricted Stock Units - Unrecognized Compensation Cost (Details) - Restricted stock units $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Unrecognized compensation cost
Unrecognized compensation cost	$ 5,859
Expected weighted-average recognition period for compensation cost	2 years 10 months 24 days

STOCK-BASED COMPENSATION - Re97

STOCK-BASED COMPENSATION - Restricted Stock Awards - General Disclosures (Details) - Restricted stock awards - USD ($) $ / shares in Units, $ in Thousands	Nov. 12, 2015	May 28, 2015	Dec. 31, 2016	Dec. 31, 2015
Restricted Stock Awards
Granted (in shares)	524,105	71,946	2,672,420	596,051
Grant date fair value	$ 9,198	$ 2,000
Grant date fair value (in dollars per share)	$ 17.55	$ 27.80	$ 13.81	$ 18.79
Employees
Restricted Stock Awards
Vesting period	5 years	1 year
Directors
Restricted Stock Awards
Vesting period		5 years

STOCK-BASED COMPENSATION - Re98

STOCK-BASED COMPENSATION - Restricted Stock Awards - Activity (Details) - Restricted stock awards - $ / shares	Nov. 12, 2015	May 28, 2015	Dec. 31, 2016	Dec. 31, 2015
Number of RSAs
Granted and unvested (in shares)			569,072
Granted (in shares)	524,105	71,946	2,672,420	596,051
Vested (in shares)			(246,238)
Forfeited (in shares)			(158,394)	(26,979)
Granted and unvested (in shares)			2,836,860	569,072
Weighted Average Fair Value Per Unit
Granted and unvested (in dollars per share)			$ 18.36
Granted (in dollars per share)	$ 17.55	$ 27.80	13.81	$ 18.79
Vested (in dollars per share)			13.63
Forfeited (in dollars per share)			18.67	27.80
Granted and unvested (in dollars per share)			$ 14.47	$ 18.36

STOCK-BASED COMPENSATION - Re99

STOCK-BASED COMPENSATION - Restricted Stock Awards - Unrecognized Compensation Cost (Details) - Restricted stock awards $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Unrecognized compensation cost
Unrecognized compensation cost	$ 39,207
Expected weighted-average recognition period for compensation cost	4 years 6 months

STOCK-BASED COMPENSATION - Empl

STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Stock Purchase Plan
Stock-based compensation	$ 10,054	$ 7,415	$ 2,894
Employee Stock Purchase Plan
Employee Stock Purchase Plan
Purchase period	6 months
Fair value of the company's stock taken for purchase price calculation (as a percent)	85.00%
Amount to be deducted from the payroll, minimum (as a percent)	1.00%
Amount to be deducted from the payroll, maximum (as a percent)	15.00%
Maximum amount of deduction from payroll	$ 7,500
Shares purchased	61,184	30,689
Shares issued	61,184	30,689
Discounted price	$ 14.03	$ 18.61
Stock-based compensation	$ 140	$ 156
Employee Stock Purchase Plan | Class A Common
Employee Stock Purchase Plan
Shares reserved for future issuance	1,833,857

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
EMPLOYEE BENEFIT PLANS
Matching contributions	$ 5,165	$ 4,227	$ 2,820
401(k) Plan
EMPLOYEE BENEFIT PLANS
Eligibility term	30 days
Employer's match percentage of employees deferrals	4.00%

STOCKHOLDERS' EQUITY (DEFICIT)

STOCKHOLDERS' EQUITY (DEFICIT) - General Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 19, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
STOCKHOLDERS' EQUITY (DEFICIT)
Number of shares repurchased (in shares)							10,703,360
Amount of shares repurchased				$ 106,231		$ 309,083	$ 72,114
Issuance of treasury stock upon initial public offering, net of offering costs (in shares)							7,216,610
Issuance of treasury stock upon initial public offering, net of offering costs					$ 279,902		$ 52,114
Retirement of common / treasury stock (in shares)							3,486,750
Treasury Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Number of shares repurchased (in shares)		11,109,285	1,462,320	7,508,985		12,571,605
Amount of shares repurchased		$ 300,017	$ 9,066	$ 106,231		$ 309,083
Issuance of treasury stock upon initial public offering, net of offering costs (in shares)					11,109,285
Issuance of treasury stock upon initial public offering, net of offering costs					$ 300,017
Retirement of common / treasury stock (in shares)			1,462,320			1,462,320
Retirement of common/treasury stock			$ (9,066)			$ (9,066)	$ (20,000)
Additional Paid-in Capital
STOCKHOLDERS' EQUITY (DEFICIT)
Issuance of treasury stock upon initial public offering, net of offering costs					$ (20,115)
Retirement of common/treasury stock			1,011			1,011	2,403
Retained Earnings
STOCKHOLDERS' EQUITY (DEFICIT)
Retirement of common/treasury stock			$ 8,055			$ 8,055	$ 17,597
Class A Common
STOCKHOLDERS' EQUITY (DEFICIT)
Number of shares repurchased (in shares)				7,508,985
Amount of shares repurchased				$ 106,200
Average cost of shares repurchased (in dollars per shares)				$ 14.15
Treasury stock shares						11,109,285
Class A Common | Common Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Conversion Class B to Class A common stock (in shares)		11,109,285		15,085,488	27,313,057	11,109,285
Class B Common
STOCKHOLDERS' EQUITY (DEFICIT)
Treasury Stock Acquired, Repurchase Authorization, Percentage of Outstanding Shares	8.33
Average cost of shares repurchased (in dollars per shares)		$ 27.01
Share price (in dollars per share)		$ 19.89
Class B Common | Common Stock
STOCKHOLDERS' EQUITY (DEFICIT)
Retirement of common / treasury stock (in shares)						(1,462,320)
Conversion Class B to Class A common stock (in shares)		(11,109,285)		(15,085,488)	(27,313,057)	(11,109,285)

STOCKHOLDERS' EQUITY (DEFICI103

STOCKHOLDERS' EQUITY (DEFICIT) - Initial Public Offering (Details) - Class A Common	Feb. 18, 2015USD ($)$ / shares
IPO and Over-Allotment Option
STOCKHOLDERS' EQUITY (DEFICIT)
Shares issued (in shares)	$ 25,364,803
Proceeds after the underwriters' discounts and commissions and other expenses	639,100,000
IPO
STOCKHOLDERS' EQUITY (DEFICIT)
Shares issued (in shares)	$ 22,222,222
Share price (in dollars per share) | $ / shares	$ 27
Over-Allotment Option
STOCKHOLDERS' EQUITY (DEFICIT)
Shares issued (in shares)	$ 3,142,581

STOCKHOLDERS' EQUITY (DEFICI104

STOCKHOLDERS' EQUITY (DEFICIT) - Class A Common (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014	Dec. 31, 2013	Nov. 02, 2016	May 04, 2016
STOCKHOLDERS' EQUITY (DEFICIT)
Number of shares repurchased (in shares)			10,703,360
Amount of shares repurchased	$ 106,231	$ 309,083	$ 72,114
Class A Common
STOCKHOLDERS' EQUITY (DEFICIT)
Share repurchase authorized amount (in shares)				$ 200,000	$ 100,000
Amount of additional shares authorized				$ 100,000
Number of shares repurchased (in shares)	7,508,985
Amount of shares repurchased	$ 106,200
Average cost of shares repurchased (in dollars per shares)	$ 14.15
Share repurchase remaining authorized amount	$ 94,000

INCOME TAXES - Provision for In

INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current:
Federal	$ 7,480	$ 31,351	$ 33,577
State	5,788	10,937	7,294
Foreign (Puerto Rico)	267	574	626
Total current provision	13,535	42,862	41,497
Deferred:
Federal	(1,533)	4,708	1,541
State	(207)	1,078	341
Total deferred provision	(1,740)	5,786	1,882
Income tax expense	$ 11,795	$ 48,648	$ 43,379

INCOME TAXES - Provision for106

INCOME TAXES - Provision for Income Taxes Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income tax expense reconciliation (percent)
Expected federal income tax (as a percent)	35.00%	35.00%	35.00%
State income taxes, net of federal income tax effect (as a percent)	7.40%	6.80%	4.60%
Permanent items (as percent)	(0.90%)
Permanent items (as a percent)		0.30%	0.40%
Research and development tax credits (as a percent)	(1.90%)	(0.80%)	(0.60%)
Excess tax benefits and share-based compensation (as a percent)	(3.00%)
Acquisition-related deferred tax adjustments (as a percent)	(4.30%)
Other (as a percent)	(2.00%)	1.10%	0.50%
Income tax expense (as a percent)	30.30%	42.40%	39.90%
Income tax expense reconciliation
Expected federal income tax	$ 13,650	$ 40,149	$ 38,056
State income taxes, net of federal income tax effect	2,859	7,753	4,961
Permanent items	(357)	390	422
Research and development tax credits	(756)	(864)	(695)
Excess tax benefits and share-based compensation	(1,165)
Acquisition-related deferred tax adjustments	(1,686)
Other	(750)	1,220	635
Income tax expense	$ 11,795	$ 48,648	$ 43,379

INCOME TAXES - Components of De

INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Accrued expenses and reserves	$ 3,135	$ 1,743
Stock-based compensation	2,849	2,490
Deferred rent	987	1,190
Net operating loss carryforwards	1,047	2,402
Other	904	1,270
Total deferred tax assets	8,922	9,095
Deferred tax liabilities:
Intangibles	18,046	22,267
Property, equipment and capitalized software	23,108	21,042
Prepaids and other	2,083	2,751
Total deferred tax liabilities	43,237	46,060
Net deferred tax liabilities before valuation allowance	34,315	36,965
Valuation Allowance	238
Net deferred tax liabilities	$ 34,553	$ 36,965

INCOME TAXES - Uncertain Tax Po

INCOME TAXES - Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
INCOME TAXES
Increase in the liability for gross uncertain tax position, including interest	$ 80	$ 0	$ 0
Uncertain tax position
Gross increase in tax positions in prior period	80
Ending balance, uncertain tax position	$ 80

INCOME TAXES - Net Operating Lo

INCOME TAXES - Net Operating Losses Carryforwards (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Federal
Net Operating Losses Carryforwards (NOLs)
Net operating loss carryforwards	$ 1	$ 5

Schedule II - Valuation and 110

Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - Allowance for accounts receivable - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Movement in Valuation Allowances and Reserves
Balance at beginning of year	$ 1,022	$ 1,827	$ 1,484
Additions charged against revenue	3,792	1,126	2,498
Deductions	(1,032)	(1,931)	(2,155)
Balance at end of year	$ 3,782	$ 1,022	$ 1,827