Inovalon (INOV) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Entity Registrant Name	Inovalon Holdings, Inc.
Entity Central Index Key	1,619,954
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Class A Common
Entity Common Stock, Shares Outstanding		63,243,236
Class B Common
Entity Common Stock, Shares Outstanding		82,745,283

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 147,888	$ 127,683
Short-term investments	385,422	445,315
Accounts receivable (net of allowances of $2,820 and $3,782 at March 31, 2017 and December 31, 2016, respectively)	101,640	85,591
Prepaid expenses and other current assets	12,987	12,100
Income tax receivable	12,704	15,165
Total current assets	660,641	685,854
Non-current assets:
Property, equipment and capitalized software, net	78,826	76,420
Goodwill	184,557	184,557
Intangible assets, net	99,776	103,549
Other assets	3,854	2,964
Total assets	1,027,654	1,053,344
Current liabilities:
Accounts payable	17,672	16,474
Accrued compensation	10,072	15,211
Other current liabilities	14,443	9,468
Deferred revenue	16,851	11,850
Deferred rent	1,065	1,016
Credit facilities	33,750	30,000
Capital lease obligation	117	115
Total current liabilities	93,970	84,134
Non-current liabilities:
Credit facilities, less current portion	225,000	236,250
Capital lease obligation, less current portion	187	215
Deferred rent	1,194	1,457
Other liabilities	7,403	13,158
Deferred income taxes	34,497	34,553
Total liabilities	362,251	369,767
Commitments and contingencies (Note 5)
Stockholders' equity:
Common stock
Preferred stock, $0.0001 par value, 100,000,000 shares authorized, zero shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively
Additional paid-in-capital	519,691	516,300
Retained earnings	277,729	274,087
Other comprehensive income (loss)	(404)	(580)
Total stockholders' equity	665,403	683,577
Total liabilities and stockholders' equity	1,027,654	1,053,344
Class A Common
Stockholders' equity:
Common stock
Treasury stock, Class A common stock, at cost, 9,650,386 and 7,508,985 shares at March 31, 2017 and December 31, 2016, respectively	(131,614)	(106,231)
Class B Common
Stockholders' equity:
Common stock	$ 1	$ 1

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts receivable, allowances
Accounts receivable, allowances (in dollars)	$ 2,820	$ 3,782
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
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	73,379,489	72,271,298
Common stock, outstanding shares	63,729,103	64,786,705
Treasury stock
Treasury stock shares	9,650,386	7,508,985
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	82,745,283	83,303,628
Common stock, outstanding shares	82,745,283	83,303,628

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Revenue		$ 108,306	$ 102,657
Expenses:
Cost of revenue	[1]	38,285	41,923
Sales and marketing	[1]	7,587	6,559
Research and development	[1]	7,788	5,932
General and administrative	[1]	35,845	36,552
Depreciation and amortization		12,485	8,394
Total operating expenses		101,990	99,360
Income from operations		6,316	3,297
Other income and (expenses):
Realized losses on short-term investments			(4)
Gain on disposal of equipment			534
Interest income		1,338	1,442
Interest expense		(1,413)	(1,259)
Income before taxes		6,241	4,010
Provision for income taxes		2,599	1,645
Net income		3,642	2,365
Net income attributable to common stockholders, basic and diluted		$ 3,569	$ 2,356
Net income per share attributable to common stockholders, basic and diluted:
Basic net income per share (in dollars per share)		$ 0.02	$ 0.02
Diluted net income per share (in dollars per share)		$ 0.02	$ 0.02
Weighted average shares of common stock outstanding:
Basic (in shares)		144,729	151,282
Diluted (in shares)		145,165	152,355
[1]	Includes stock-based compensation expense as follows: Three months ended March 31, 2017: Cost of revenue 305; Sales and marketing 390; Research and development 273; General and administrative 2,629; Total stock-based compensation expense 3,597. Three months ended March 31, 2016: Cost of revenue 119; Sales and marketing 154; Research and development 242; General and administrative 1,577; Total stock-based compensation expense 2,092.

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 3,597	$ 2,092
Cost of revenue
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	305	119
Sales and marketing
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	390	154
Research and development
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	273	242
General and administrative
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 2,629	$ 1,577

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 3,642	$ 2,365
Other comprehensive income:
Realized losses on short-term investments reclassified from accumulated other comprehensive income, net of tax of $0 and $1, respectively		3
Net change in unrealized gains and (losses) on available-for-sale investments, net of tax of $138 and $560, respectively	176	2,385
Comprehensive income	$ 3,818	$ 4,753

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Realized losses on short-term investments reclassified from accumulated other comprehensive income, tax	$ 0	$ 1
Net change in unrealized gains and (losses) on available-for-sale investments, tax	$ 138	$ 560

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 3,642	$ 2,365
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	3,597	2,092
Depreciation	8,874	6,567
Amortization of intangibles	3,611	1,827
Amortization of premiums on short-term investments	591	871
Realized losses on short-term investments		4
Tax payments for equity award issuances		88
Deferred income taxes	(113)	(1,252)
Excess tax benefits from stock-based compensation		(911)
Gain on disposal of equipment		(534)
Changes in assets and liabilities:
Accounts receivable	(16,049)	8,128
Prepaid expenses and other current assets	(886)	(5,054)
Income taxes receivable	2,381	2,037
Other assets	(890)	78
Accounts payable	69	(2,194)
Accrued compensation	(6,467)	(3,877)
Other liabilities	(816)	2,676
Deferred rent	(214)	(149)
Deferred revenue	5,001	1,537
Net cash provided by operating activities	2,331	14,299
Cash flows from investing activities:
Sales and maturities of short-term investments	59,615	84,671
Purchases of short-term investments		(80,065)
Purchases of property and equipment	(2,965)	(4,053)
Investment in capitalized software	(5,605)	(2,790)
Net cash provided by (used in) investing activities	51,045	(2,237)
Cash flows from financing activities:
Repurchase of common stock	(25,383)
Repayment of credit facility borrowings	(7,500)	(3,750)
Proceeds from exercise of stock options	25	3,841
Capital lease obligations paid	(116)	(31)
Tax payments for equity award issuances	(197)	(182)
Excess tax benefits from stock-based compensation		911
Net cash (used in) provided by financing activities	(33,171)	789
Increase in cash and cash equivalents	20,205	12,851
Cash and cash equivalents, beginning of period	127,683	114,034
Cash and cash equivalents, end of period	147,888	126,885
Supplementary cash flow disclosure:
Cash paid during the period for: Income taxes, net of refunds	189	861
Cash paid during the period for: Interest	1,364	1,195
Non-cash investing activities:
Accounts payable for purchases of and investment in property, equipment and capitalized software	2,737	933
Accrued compensation for investment in capitalized software	$ 2,992	$ 53

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by Inovalon Holdings, Inc. (the "Company") in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2016 condensed consolidated balance sheet data included herein was derived from audited financial statements but does not include all disclosures required by GAAP for complete financial statements. In the opinion of the Company's management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of items of a normal and recurring nature, necessary to present fairly the Company's financial position as of March 31, 2017, and the results of operations, and comprehensive income for the three month periods ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three month periods ended March 31, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, and related disclosures, as of the date of the financial statements, and the amounts of revenue and expenses reported during the period. Actual results could differ from estimates. The information contained herein should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. The accompanying unaudited condensed 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. The Company's management considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements. Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's consolidated financial statements and note disclosures, from those disclosed in the Company's 2016 Annual Report on Form 10-K, that would be expected to impact the Company except for the following: In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard narrows the definition of a business and provides a framework for evaluation. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.

NET INCOME PER SHARE

NET INCOME PER SHARE	3 Months Ended
	Mar. 31, 2017
NET INCOME PER SHARE
NET INCOME PER SHARE	2. NET INCOME PER SHARE (in thousands, except per share amounts) 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. Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of shares of common stock, (Class A common stock and Class B common stock), outstanding during the period. Diluted EPS is computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period under the treasury stock method. Potentially dilutive securities include stock options and restricted stock units ("RSUs") and restricted stock awards ("RSAs"). 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 earnings per share if their effect would be anti-dilutive to EPS. The Company has issued 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. 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 following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated: Three Months Ended 2017 2016 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 certain unvested awards, on a weighted average basis, for the three months ended March 31, 2017 and 2016, respectively, because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect are as follows: Three Months 2017 2016 Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	3 Months Ended
	Mar. 31, 2017
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS	3. SHORT-TERM INVESTMENTS (in thousands) As of March 31, 2017, 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, 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 $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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: March 31, 2017 December 31, 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 March 31, 2017. 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 March 31, 2017, aggregated by investment category: Estimated Gross Corporate notes and bonds $ $ ) U.S. agency obligations ) U.S. treasury securities ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	4. 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 March 31, 2017: 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 — — Certificates of deposit — — 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, 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 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): Fair Value Three Months Ended 2017 2016 Balance, beginning of period $ ) $ ) Accretion expense (recognized in general and administrative expenses) — ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	5. COMMITMENTS AND CONTINGENCIES (in thousands) 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 condensed 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 relating to 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 of 1933, as amended, 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, the Company 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.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 31, 2017
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	6. BUSINESS COMBINATIONS (in thousands, except share amounts) Creehan Acquisition On October 3, 2016, 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 March 31, 2017, the Company was in the process of reviewing its 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 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the activity related to the carrying value of our goodwill during the three months ended March 31, 2017: Goodwill as of January 1, 2017 $ Measurement period adjustments — ​ ​ ​ ​ ​ Goodwill as of March 31, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2017
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	7. STOCKHOLDERS' EQUITY (in thousands, except share amounts and share price) Treasury Stock —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 three months ended March 31, 2017, the Company repurchased 2,141,401 shares of Class A common stock for an aggregate of $25,383 at an average cost of $11.85 per share, excluding commissions. During the year ended December 31, 2016, the Company repurchased 7,508,985 shares of Class A common stock for an aggregate of $106,231 at an average cost of $14.15 per share, excluding commissions. At March 31, 2017, approximately $68,386 remained available to repurchase shares under the share repurchase program. Shares that are repurchased under the repurchase program were recorded as treasury stock, based on the stock trading dates, and are available for future issuance, until retired.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2017
BASIS OF PRESENTATION
Basis of Presentation	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by Inovalon Holdings, Inc. (the "Company") in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial reporting and as required by Rule 10-01 of Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2016 condensed consolidated balance sheet data included herein was derived from audited financial statements but does not include all disclosures required by GAAP for complete financial statements. In the opinion of the Company's management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of items of a normal and recurring nature, necessary to present fairly the Company's financial position as of March 31, 2017, and the results of operations, and comprehensive income for the three month periods ended March 31, 2017 and 2016, and cash flows for the three months ended March 31, 2017 and 2016. The results of operations for the three month periods ended March 31, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities, and related disclosures, as of the date of the financial statements, and the amounts of revenue and expenses reported during the period. Actual results could differ from estimates. The information contained herein should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. The accompanying unaudited condensed 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. The Company's management considers events or transactions that occur after the balance sheet date but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through the date of issuance of these financial statements.
Recently Issued Accounting Standards	Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company's consolidated financial statements and note disclosures, from those disclosed in the Company's 2016 Annual Report on Form 10-K, that would be expected to impact the Company except for the following: In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The new standard simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. This ASU will be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The new standard narrows the definition of a business and provides a framework for evaluation. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
NET INCOME PER SHARE
Schedule of numerators and denominators of the basic and diluted EPS	Three Months Ended 2017 2016 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 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of antidilutive securities excluded from computation of earnings per share	Three Months 2017 2016 Awards excluded from the computation of diluted net income per share because their inclusion would have been anti-dilutive

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
SHORT-TERM INVESTMENTS
Schedule of short-term investments	As of March 31, 2017, 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, 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 $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of estimated fair value of short-term investments, designated as available-for-sale and classified by the contractual maturity	March 31, 2017 December 31, 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 March 31, 2017, aggregated by investment category: Estimated Gross Corporate notes and bonds $ $ ) U.S. agency obligations ) U.S. treasury securities ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017: 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 — — Certificates of deposit — — 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, 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 $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of financial instruments measured at fair value using unobservable inputs (Level 3)	Fair Value Three Months Ended 2017 2016 Balance, beginning of period $ ) $ ) Accretion expense (recognized in general and administrative expenses) — ) ​ ​ ​ ​ ​ ​ ​ ​ Total $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	3 Months Ended
	Mar. 31, 2017
BUSINESS COMBINATIONS
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 the activity related to the carrying value of goodwill	Goodwill as of January 1, 2017 $ Measurement period adjustments — ​ ​ ​ ​ ​ Goodwill as of March 31, 2017 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

NET INCOME PER SHARE - Tabular

NET INCOME PER SHARE - Tabular Disclosure (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic
Net income	$ 3,642	$ 2,365
Undistributed earnings allocated to participating securities	73	9
Net income attributable to common stockholders - basic	$ 3,569	$ 2,356
Weighted average shares used in computing net income per share attributable to common stockholders - basic	144,729	151,282
Net income per share attributable to common stockholders - basic	$ 0.02	$ 0.02
Diluted
Net income attributable to common stockholders - diluted	$ 3,569	$ 2,356
Weighted average shares used in computing net income per share attributable to common stockholders - basic	144,729	151,282
Effect of dilutive securities	436	1,073
Weighted average shares used in computing net income per share attributable to common stockholders - diluted	145,165	152,355
Net income per share attributable to common stockholders - diluted	$ 0.02	$ 0.02

NET INCOME PER SHARE - Anti-dil

NET INCOME PER SHARE - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
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	168	110

SHORT-TERM INVESTMENTS - Availa

SHORT-TERM INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Available-for-sale securities:
Amortized Cost	$ 386,144	$ 446,349
Gross Unrealized Gains	80	65
Gross Unrealized Losses	(802)	(1,099)
Estimated Fair Value	385,422	445,315
Corporate notes and bonds
Available-for-sale securities:
Amortized Cost	318,459	349,571
Gross Unrealized Gains	62	36
Gross Unrealized Losses	(637)	(918)
Estimated Fair Value	317,884	348,689
U.S. agency obligations
Available-for-sale securities:
Amortized Cost	34,855	34,864
Gross Unrealized Gains	15	22
Gross Unrealized Losses	(72)	(78)
Estimated Fair Value	34,798	34,808
U.S. treasury securities
Available-for-sale securities:
Amortized Cost	31,147	53,681
Gross Unrealized Gains	3	6
Gross Unrealized Losses	(93)	(100)
Estimated Fair Value	31,057	53,587
Commercial paper
Available-for-sale securities:
Amortized Cost		6,312
Gross Unrealized Losses		(3)
Estimated Fair Value		6,309
Certificates of deposit
Available-for-sale securities:
Amortized Cost	1,683	1,921
Gross Unrealized Gains		1
Estimated Fair Value	$ 1,683	$ 1,922

SHORT-TERM INVESTMENTS - Estima

SHORT-TERM INVESTMENTS - Estimated Fair Value by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
SHORT-TERM INVESTMENTS
Due in one year or less	$ 186,057	$ 176,696
Due after one year through three years	199,365	268,619
Total	$ 385,422	$ 445,315

SHORT-TERM INVESTMENTS - Other-

SHORT-TERM INVESTMENTS - Other-than-temporary Impairments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
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	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	$ 305,121
Gross Unrealized Losses	(802)
Corporate notes and bonds
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	255,307
Gross Unrealized Losses	(637)
U.S. agency obligations
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	22,978
Gross Unrealized Losses	(72)
U.S. treasury securities
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	26,836
Gross Unrealized Losses	$ (93)

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Short-term investments:
Short-term investments	$ 385,422	$ 445,315
Corporate notes and bonds
Short-term investments:
Short-term investments	317,884	348,689
U.S. agency obligations
Short-term investments:
Short-term investments	34,798	34,808
U.S. treasury securities
Short-term investments:
Short-term investments	31,057	53,587
Commercial paper
Short-term investments:
Short-term investments		6,309
Certificates of deposit
Short-term investments:
Short-term investments	1,683	1,922
Recurring
Total
Total	458,425	476,823
Recurring | Money market funds
Cash Equivalents:
Cash equivalents	85,603	44,108
Recurring | Level 1
Total
Total	85,603	44,108
Recurring | Level 1 | Money market funds
Cash Equivalents:
Cash equivalents	85,603	44,108
Recurring | Level 2
Total
Total	385,422	445,315
Recurring | Level 3
Total
Total	(12,600)	(12,600)
Recurring | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(12,600)	(12,600)
Recurring | Contingent consideration | Level 3
Liabilities / Other Current Liabilities:
Contingent consideration	(12,600)	(12,600)
Recurring | Corporate notes and bonds
Short-term investments:
Short-term investments	317,884	348,689
Recurring | Corporate notes and bonds | Level 2
Short-term investments:
Short-term investments	317,884	348,689
Recurring | U.S. agency obligations
Short-term investments:
Short-term investments	34,798	34,808
Recurring | U.S. agency obligations | Level 2
Short-term investments:
Short-term investments	34,798	34,808
Recurring | U.S. treasury securities
Short-term investments:
Short-term investments	31,057	53,587
Recurring | U.S. treasury securities | Level 2
Short-term investments:
Short-term investments	31,057	53,587
Recurring | Commercial paper
Short-term investments:
Short-term investments		6,309
Recurring | Commercial paper | Level 2
Short-term investments:
Short-term investments		6,309
Recurring | Certificates of deposit
Short-term investments:
Short-term investments	1,683	1,922
Recurring | Certificates of deposit | Level 2
Short-term investments:
Short-term investments	$ 1,683	$ 1,922

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Fair Value Measurements Using Unobservable Inputs (Level 3)
Balance, beginning of period	$ (12,600)	$ (2,300)
Accretion expense (recognized in general and administrative expenses)		(235)
Total	$ (12,600)	$ (2,535)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (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

BUSINESS COMBINATIONS - General

BUSINESS COMBINATIONS - General Disclosures (Details) - Creehan Holding Co., Inc. $ in Thousands	Oct. 03, 2016USD ($)shares
BUSINESS COMBINATIONS
Share Purchase Agreement purchase price	$ 130,000
Consideration paid in cash before working capital adjustments	120,000
Issuance of Class A common stock before working capital adjustments	$ 10,000
Issuance of Class A common stock (in shares) | shares	651,355

BUSINESS COMBINATIONS - Stated

BUSINESS COMBINATIONS - Stated Purchase Price and Fair Value of the Stated Purchase Price (Details) - Creehan Holding Co., Inc. $ in Thousands	Oct. 03, 2016USD ($)
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

BUSINESS COMBINATIONS - Fair Va

BUSINESS COMBINATIONS - Fair Value of Consideration Transferred (Details) - Creehan Holding Co., Inc. $ in Thousands	Oct. 03, 2016USD ($)
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

BUSINESS COMBINATIONS - Purchas

BUSINESS COMBINATIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jan. 01, 2017	Dec. 31, 2016	Oct. 03, 2016
Preliminary Recording of Assets Acquired and Liabilities Assumed
Goodwill	$ 184,557		$ 184,557
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	$ 184,557	$ 184,557		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

BUSINESS COMBINATIONS - Identif

BUSINESS COMBINATIONS - Identified Intangible Assets (Details) - Creehan Holding Co., Inc. $ in Thousands	Oct. 03, 2016USD ($)
Identified intangible assets
Total intangible assets	$ 50,900
Customer relationships
Identified intangible assets
Weighted Average Useful Life	8 years
Total intangible assets	$ 36,500
Tradename
Identified intangible assets
Weighted Average Useful Life	4 years
Total intangible assets	$ 4,000
Technology
Identified intangible assets
Weighted Average Useful Life	4 years
Total intangible assets	$ 8,800
In-process Research and Development
Identified intangible assets
Total intangible assets	$ 1,600

BUSINESS COMBINATIONS - Goodwil

BUSINESS COMBINATIONS - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jan. 01, 2017	Dec. 31, 2016
Summary of the activity related to the carrying value of goodwill
Goodwill at the beginning of the period		$ 184,557
Goodwill at the end of the period	$ 184,557		$ 184,557
Creehan Holding Co., Inc.
Summary of the activity related to the carrying value of goodwill
Goodwill at the beginning of the period	184,557		$ 50,987
Goodwill at the end of the period	$ 184,557	$ 184,557

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - Class A Common - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Nov. 02, 2016	May 04, 2016
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)	2,141,401	7,508,985
Amount of shares repurchased	$ 253,083	$ 106,231
Average cost of shares repurchased (in dollars per shares)	$ 11.85	$ 14.15
Share repurchase remaining authorized amount	$ 68,386