Inovalon (INOV) 10-Q 1 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 20, 2018
Entity Registrant Name	Inovalon Holdings, Inc.
Entity Central Index Key	1,619,954
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
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	2,018
Document Fiscal Period Focus	Q2
Class A Common
Entity Common Stock, Shares Outstanding (in shares)		72,055,158
Class B Common
Entity Common Stock, Shares Outstanding (in shares)		80,608,685

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 68,007	$ 208,944
Short-term investments	15,674	267,288
Accounts receivable (net of allowances of $3,788 and $2,038 at June 30, 2018 and December 31, 2017, respectively)	114,121	90,054
Prepaid expenses and other current assets	17,982	10,441
Income tax receivable	12,868	11,987
Total current assets	228,652	588,714
Non-current assets:
Property, equipment and capitalized software, net	139,626	125,768
Goodwill	934,693	184,932
Intangible assets, net	584,678	89,326
Other assets	17,034	6,338
Total assets	1,904,683	995,078
Current liabilities:
Accounts payable and accrued expenses	27,033	34,109
Accrued compensation	18,602	18,592
Other current liabilities	41,325	15,277
Deferred revenue	18,195	6,954
Deferred rent	540	1,818
Credit facilities	9,800	45,000
Capital lease obligation	1,796	336
Total current liabilities	117,291	122,086
Non-current liabilities:
Credit facilities, less current portion	940,038	191,250
Capital lease obligation, less current portion	14,940	12,109
Deferred rent, less current portion	2,838	219
Other liabilities	20,029	0
Deferred income taxes	115,624	26,642
Total liabilities	1,210,760	352,306
Commitments and contingencies (Note 7)	0	0
Stockholders’ equity:
Common stock	0	0
Preferred stock, $0.0001 par value, 100,000,000 shares authorized, zero shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	0	0
Additional paid-in-capital	611,035	534,159
Retained earnings	282,335	308,905
Treasury stock, at cost, 14,620,175 shares at June 30, 2018 and December 31, 2017, respectively	(199,817)	(199,817)
Other comprehensive loss	369	(476)
Total stockholders’ equity	693,923	642,772
Total liabilities and stockholders’ equity	1,904,683	995,078
Class A Common
Stockholders’ equity:
Common stock	0	0
Class B Common
Stockholders’ equity:
Common stock	$ 1	$ 1

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable, allowances
Accounts receivable, allowances (in dollars)	$ 3,788	$ 2,038
Commitments and contingencies (Note 7)	$ 0	$ 0
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	900,000,000	900,000,000
Common stock, issued (in shares)	0	0
Common stock, outstanding (in shares)	0	0
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Class A Common
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	750,000,000	750,000,000
Common stock, issued (in shares)	86,592,250	77,588,018
Common stock, outstanding (in shares)	71,972,075	62,967,843
Treasury stock
Treasury stock (in shares)	14,620,175	14,620,175
Class B Common
Common stock
Common stock, par value (in dollars per share)	$ 0.000005	$ 0.000005
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	80,608,685	80,957,495
Common stock, outstanding (in shares)	80,608,685	80,957,495

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenue		$ 152,798	$ 110,578	$ 245,553	$ 218,884
Expenses:
Cost of revenue	[1]	39,015	37,198	72,506	75,483
Sales and marketing	[1]	12,045	8,849	19,947	16,436
Research and development	[1]	7,545	7,282	13,966	15,070
General and administrative	[1]	60,174	35,874	109,570	71,719
Depreciation and amortization		26,906	12,479	43,286	24,964
Restructuring expense		9,464	0	9,464	0
Total operating expenses		155,149	101,682	268,739	203,672
(Loss) Income from operations		(2,351)	8,896	(23,186)	15,212
Other income and (expenses):
Realized losses on short-term investments		0	0	(1,035)	0
Loss on disposal of equipment		(382)	(138)	(467)	(138)
Gain (loss) on extinguishment of debt		(129)	0	(129)	0
Interest income		154	1,342	1,549	2,680
Interest expense		(15,568)	(1,519)	(17,450)	(2,932)
(Loss) Income before taxes		(18,276)	8,581	(40,718)	14,822
(Benefit from) Provision for income taxes		(7,810)	3,095	(13,418)	5,694
Net (loss) income		(10,466)	5,486	(27,300)	9,128
Net (loss) income attributable to common stockholders, basic and diluted		$ (10,466)	$ 5,338	$ (27,300)	$ 8,913
Net (loss) income per share attributable to common stockholders, basic and diluted:
Basic net (loss) income per share (in dollars per share)		$ (0.07)	$ 0.04	$ (0.19)	$ 0.06
Diluted net (loss) income per share (in dollars per share)		$ (0.07)	$ 0.04	$ (0.19)	$ 0.06
Weighted average shares of common stock outstanding:
Basic (in shares)		147,181	142,632	143,301	143,680
Diluted (in shares)		147,181	143,072	143,301	144,123
[1]	(1)Includes stock-based compensation expense as follows: Cost of revenue$(87) $410 $53 $715 Sales and marketing(401) 505 68 895 Research and development330 307 958 580 General and administrative2,802 2,525 5,313 5,154 Total stock-based compensation expense$2,644 $3,747 $6,392 $7,344

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 2,644	$ 3,747	$ 6,392	$ 7,344
Cost of revenue
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	(87)	410	53	715
Sales and marketing
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	(401)	505	68	895
Research and development
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	330	307	958	580
General and administrative
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 2,802	$ 2,525	$ 5,313	$ 5,154

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net (loss) income	$ (10,466)	$ 5,486	$ (27,300)	$ 9,128
Other comprehensive income:
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	570	0	570	0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(135)	0	(135)	0
Realized losses on short-term investments reclassified from accumulated other comprehensive income, net of tax of $0, $0, $(319) and $0, respectively	0	0	716	0
Net change in unrealized (losses) and gains on available-for-sale investments, net of tax of $(14), $136, $91 and $272, respectively	31	35	(204)	211
Reclassification of income tax effects of the Tax Cuts and Jobs Act of 2017	0	0	(102)	0
Comprehensive (loss) income	$ (10,000)	$ 5,521	$ (26,455)	$ 9,339

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	$ (268)	$ 0	$ (268)	$ 0
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	64	0	64	0
Realized gains on short-term investments reclassified from accumulated other comprehensive income, tax	0	0	(319)	0
Net change in unrealized gains on available-for-sale investments, tax	$ (14)	$ 136	$ 91	$ 272

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net (loss) income	$ (27,300)	$ 9,128
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	6,392	7,344
Depreciation	25,638	17,442
Amortization of intangibles	17,648	7,522
Amortization of premiums on short-term investments	264	1,017
Amortization of debt issuance costs and debt discount	1,024	0
Deferred income taxes	(13,151)	(2,513)
Restructuring expense, non-cash	8,583	0
Loss on sale of short-term investments	1,035	0
Loss on disposal of equipment	467	138
Loss on extinguishment of debt	129	0
Change in fair value of contingent consideration	8,700	0
Changes in assets and liabilities:
Accounts receivable	(7,312)	(10,107)
Prepaid expenses and other current assets	(3,222)	683
Income taxes receivable	(330)	7,328
Other assets	(5,727)	(2,313)
Accounts payable and accrued expenses	(10,676)	5,660
Accrued compensation	2,336	112
Other current and non-current liabilities	9,592	114
Deferred rent	1,793	(446)
Deferred revenue	4,241	10
Net cash provided by operating activities	20,124	41,119
Cash flows from investing activities:
Maturities of short-term investments	87,901	105,245
Sales of short-term investments	161,772	0
Purchases of property and equipment	(16,476)	(9,180)
Investment in capitalized software	(22,532)	(15,394)
Acquisition, net of cash acquired of $23,850	(1,082,740)	0
Net cash (used in) provided by investing activities	(872,075)	80,671
Cash flows from financing activities:
Repurchase of common stock	0	(45,173)
Proceeds from credit facility borrowings, net of discount	965,300	0
Repayment of credit facility borrowings	(236,250)	(15,000)
Payments for debt issuance costs	(18,269)	0
Proceeds from exercise of stock options	1,613	3,016
Capital lease obligations paid	(311)	(58)
Tax payments for equity award issuances	(1,069)	(246)
Net cash provided by (used in) financing activities	711,014	(57,461)
(Decrease) Increase in cash and cash equivalents	(140,937)	64,329
Cash and cash equivalents, beginning of period	208,944	127,683
Cash and cash equivalents, end of period	68,007	192,012
Supplementary cash flow disclosure:
Cash paid during the period for: Income taxes, net of refunds	107	379
Cash paid during the period for: Interest	11,131	2,840
Non-cash investing activities:
Capital lease obligations incurred	4,602	0
Accruals for purchases of property, equipment	7,292	4,773
Accruals for investment in capitalized software	1,841	1,302
Other Significant Noncash Transaction, Value of Consideration Given	$ 83,580	$ 0

CONDENSED CONSOLIDATED STATEME9

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Acquired from Acquisition	$ 23,850	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by Inovalon Holdings, Inc. (“Inovalon” or 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, 2017 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 June 30, 2018 , the results of operations and comprehensive (loss) income for the three and six month periods ended June 30, 2018 and 2017 , and cash flows for the six months ended June 30, 2018 and 2017 . The results of operations for the three and six month periods ended June 30, 2018 and 2017 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, 2017 (the “ 2017 Form 10-K”). Certain prior period amounts have been reclassified within the operating section of the condensed consolidated statements of cash flows, and within the investing section of the statements of cash flows to conform with current period presentation. Such reclassifications had no impact on net cash provided by operating activities or net cash (used in) provided by investing activities as previously reported. 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 Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers and subsequent clarifying guidance (“ASU 2014-09”). 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 Company adopted this standard on January 1, 2018 using the modified retrospective approach. Refer to “Note 2—Revenue.” In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The update amends the guidance in Accounting Standards Codification (“ASC”) 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 Company adopted the requirements of the new standard in the first quarter of 2018 and there was no material impact on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The update amends the current hedge accounting model and eliminates the requirement to separately measure and report hedge ineffectiveness. This guidance also requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedged item. The update also eases documentation and assessment requirements, modifies certain disclosure requirements, and modifies the method of accounting for components excluded from the assessment of hedge effectiveness. The Company adopted the requirements of the new standard in the second quarter of 2018 concurrent with entering into four interest rate swaps. Refer to “Note 6 —Fair Value Measurements.” In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance is effective for all public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) which was signed into law on December 22, 2017. Early adoption is permitted in any interim period or fiscal year before the effective date. The Company early adopted the requirements of the new standard in the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act of $0.1 million from other comprehensive income to retained earnings. Refer to the condensed consolidated statements of comprehensive (loss) income. 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 2017 Form 10-K, that would be expected to impact the Company except for the following: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet and enhanced disclosure about leasing arrangements. The lease asset represents a right of use asset and the lease liability represents the obligation to make lease payments. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 using a modified retrospective approach. The modified retrospective approach requires retrospective application to comparative periods presented in the consolidated financial statements. The Company is in the process of identifying its portfolio of leases that will be recorded to the balance sheet, reviewing applicable lease agreements, evaluating the election to utilize practical expedients, and implementing changes to our processes and internal controls. The Company plans to adopt the new standard effective January 1, 2019 and is currently evaluating the impact of adoption on the consolidated financial statements and notes disclosures. In June 2018, the FASB issued ASU 2018-07, Compensation–Stock Compensation (Topic 718) . ASU 2018-07 expands the scope of ASC 718, Compensation–Stock Compensation, to include share-based payment transactions for acquired goods and services from non-employees. This update includes changing the accounting for non-employee stock-based compensation as it relates to the award measurement date, the fair value measurement of the awards, and forfeitures, among other changes to align the accounting with ASC 718. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is in the process of evaluating the timing and impact of adoption on the consolidated financial statements and notes disclosures.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE The Company adopted ASU 2014-09 as of January 1, 2018 using the modified retrospective approach. Revenues for periods beginning after January 1, 2018 are presented under ASC 606, Revenue from Contracts with Customers , while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. The Company recorded a cumulative effect net adjustment to increase retained earnings by $0.6 million as of January 1, 2018. The impact as a result of adopting ASC 606 was an increase of $0.2 million and $0.4 million in revenue and an increase of $0.1 million and $0.2 million in expense resulting from deferred commissions for the three and six months ended June 30, 2018 , respectively. These adjustments primarily related to commissions for certain contracts which are now expensed over the remaining life of the contracts and credits provided to customers which are recorded as a reduction to revenue over the applicable service period. For the remaining contracts, the Company has elected to use the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. On April 2, 2018, concurrent with the ABILITY Acquisition (as defined in “Note 9—Business Combinations”), the Company was required to comply with ASC 606 and adopted ASU 2014-09 with respect to ABILITY. There was no material impact on the consolidated financial statements as a result of adopting ASU 2014-09. The Company primarily derives its revenues through the sale or subscription licensing of its platform solutions and services. The following table disaggregates revenue by offering (in thousands): Three Months Ended Six Months Ended 2018 2017 (1) 2018 2017 Platform solutions (2) $ 138,209 $ 96,072 $ 217,175 $ 187,504 Services (3) 14,589 14,506 28,378 31,380 Total revenue $ 152,798 $ 110,578 $ 245,553 $ 218,884 ______________________________________ (1) Prior period amounts have not been adjusted under the modified retrospective method. (2) Platform solutions include arrangements for technology-based offerings representing subscription-based cloud-based platform offerings and legacy platform solutions that are not cloud-based and not billed under a subscription-based contract structure. (3) Services include advisory, implementation, and support services under time and materials, fixed price, or retainer-based contracts. Performance Obligations A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract’s transaction price is allocated to each distinct performance obligation based on standalone selling price and revenue is recognized when the performance obligations under the terms of a contract are satisfied. The determination of standalone selling price for each performance obligation requires judgment based on the terms of the contract. The majority of the Company’s platform solutions contracts contain a series of separately identifiable and distinct services that represent performance obligations that are satisfied over time. The Company allocates revenue to platform solutions by determining the standalone selling price of each performance obligation. Revenue is generally recognized on our platform offerings over the contract term. For these contracts, the Company has determined that it will use the practical expedient under ASC 606-10-55-18 to recognize revenue when it has the right to invoice. The Company qualifies for this practical expedient because the right to invoice corresponds directly with the value transferred to the customer. The Company allocates revenue to its service arrangements for advisory, implementation, and support services based on contractually agreed upon billing rates applied to direct labor hours expended plus the costs of other items used in the performance of the contract. The Company concluded that it will recognize revenue when it has the right to invoice the customer using the allowable practical expedient since the right to invoice the customer corresponds with the performance obligations completed. Revenues under fixed-price and retainer-based contracts are recognized ratably over the contract period or upon contract completion. 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. Historically, the Company has met contractually specified performance obligations. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables, and deferred revenue. 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 when the achievement of specific events as defined by each contract occurs. The Company had an unbilled receivables balance of $8.1 million and $14.1 million as of June 30, 2018 and December 31, 2017 , respectively. The decrease in the unbilled receivables balance was primarily driven by the timing of billings, which was partially offset by $2.1 million related to the acquisition of ABILITY. Refer to “Note 9 —Business Combinations.” Unbilled receivables are classified as accounts receivable on the condensed consolidated balance sheet. Advanced billings to clients in excess of revenue earned are recorded as deferred revenue until the aforementioned revenue recognition criteria are met. The Company had deferred commissions of $2.1 million as of June 30, 2018 and no deferred commissions as of December 31, 2017 . The change in deferred commissions was primarily driven by $1.3 million related to the acquisition of ABILITY. The Company had a deferred revenue balance of $18.2 million and $7.0 million as of June 30, 2018 and December 31, 2017 , respectively. The change in the deferred revenue balance was primarily driven by $7.6 million related to the acquisition of ABILITY. Revenue recognized during the three and six months ended June 30, 2018 that was included in the deferred revenue balance at the beginning of the year, or as of the acquisition date as it relates to ABILITY, was $4.4 million and $6.2 million , respectively.

NET (LOSS) INCOME PER SHARE

NET (LOSS) INCOME PER SHARE	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
NET (LOSS) INCOME PER SHARE	NET (LOSS) INCOME PER SHARE 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 (loss) 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. If the Company incurs a loss from continuing operations, diluted EPS is computed in the same manner as basic EPS. Potentially dilutive securities include stock options, 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 (loss) 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. If the Company incurs a loss from continuing operations, losses are not allocated to participating securities. The following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated (in thousands, except per share amounts): Three Months Ended Six Months Ended 2018 2017 2018 2017 Basic Numerator: Net (loss) income $ (10,466 ) $ 5,486 $ (27,300 ) $ 9,128 Undistributed earnings allocated to participating securities — (148 ) — (215 ) Net (loss) income attributable to common stockholders—basic $ (10,466 ) $ 5,338 $ (27,300 ) $ 8,913 Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 147,181 142,632 143,301 143,680 Net (loss) income per share attributable to common stockholders—basic $ (0.07 ) $ 0.04 $ (0.19 ) $ 0.06 Diluted Numerator: Net (loss) income attributable to common stockholders—diluted $ (10,466 ) $ 5,338 $ (27,300 ) $ 8,913 Denominator: Number of shares used for basic EPS computation 147,181 142,632 143,301 143,680 Effect of dilutive securities — 440 — 443 Weighted average shares used in computing net income per share attributable to common stockholders—diluted 147,181 143,072 143,301 144,123 Net (loss) income per share attributable to common stockholders—diluted $ (0.07 ) $ 0.04 $ (0.19 ) $ 0.06 The computation of diluted EPS does not include certain awards, on a weighted average basis, because their inclusion would have an anti-dilutive effect on EPS. The awards excluded because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Awards excluded from the computation of diluted net (loss) income per share because their inclusion would have been anti-dilutive 141 135 132 213

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
SHORT-TERM INVESTMENTS	SHORT-TERM INVESTMENTS As of June 30, 2018 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 15,770 $ — $ (96 ) $ 15,674 Total available-for-sale securities $ 15,770 $ — $ (96 ) $ 15,674 As of December 31, 2017 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 232,048 $ 3 $ (572 ) $ 231,479 U.S. agency obligations 15,341 — (99 ) 15,242 U.S. treasury securities 20,735 — (168 ) 20,567 Total available-for-sale securities $ 268,124 $ 3 $ (839 ) $ 267,288 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 (in thousands): June 30, December 31, Due in one year or less $ 15,177 $ 204,725 Due after one year through two years 497 62,563 Total $ 15,674 $ 267,288 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 June 30, 2018 . 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 June 30, 2018 , aggregated by investment category (in thousands): Estimated Fair Value Gross Unrealized Losses Corporate notes and bonds $ 15,674 $ (96 )

DEBT

DEBT	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
DEBT	DEBT On September 19, 2014, the Company entered into a Credit and Guaranty Agreement with a group of lenders and Goldman Sachs Bank USA, as administrative agent (the “2014 Credit Agreement”). The terms of the 2014 Credit Agreement provided for credit facilities in the aggregate maximum principal amount of $400.0 million , consisting of a senior unsecured term loan facility in the original principal amount of $300.0 million (the “2014 Term Loan Facility”) and a senior unsecured revolving credit facility in the maximum principal amount of $100.0 million (the “2014 Revolving Credit Facility” and, together with the 2014 Term Loan Facility, the “2014 Credit Facilities”). The 2014 Term Loan Facility had a five-year term and was an amortizing facility with principal payments quarterly and interest payments monthly. On April 2, 2018, the Company paid in full all existing debt obligations under the 2014 Credit Agreement and terminated all commitments to extend further credit thereunder. On April 2, 2018, the Company entered into a credit agreement (the “2018 Credit Agreement”) with a group of lenders and Morgan Stanley Senior Funding, Inc. (“MSSF”), as administrative agent, providing for (i) a term loan B facility with the Company as borrower in a total principal amount of $980.0 million (the “2018 Term Facility”); and (ii) a revolving credit facility with the Company as borrower in a total principal amount of up to $100.0 million (the “2018 Revolving Facility” and, together with the 2018 Term Facility, the “2018 Credit Facilities”). The 2018 Revolving Facility will terminate on April 2, 2023 and the 2018 Term Facility will mature on April 2, 2025. The entire $980.0 million 2018 Term Facility was borrowed on April 2, 2018, and was used to pay off all of the Company’s existing debt obligations under the 2014 Credit Facilities as well as to provide the financing necessary to fund, in part, the cash consideration paid to acquire ABILITY. As of June 30, 2018 the entire $100.0 million Revolving Facility remained available. A loss on the early extinguishment of debt of $0.1 million was recognized during the three and six months ended June 30, 2018 related to the write-off of unamortized deferred financing fees. At the option of the Company, the loans outstanding under the 2018 Term Facility will bear interest either at: (i) Adjusted London Interbank Offer Rate (“LIBOR”) plus an applicable rate of 3.50% (or 3.25% if the Senior Secured Net Leverage Ratio, as defined in the 2018 Credit Agreement, is equal to or falls below 4.00 to 1.00) or (ii) the Alternate Base Rate (“ABR”) plus an applicable margin. The Company may elect interest periods of one, two, three or six months for Adjusted LIBOR borrowings. As set forth in the 2018 Credit Agreement, the ABR is the higher of: (i) the rate that MSSF as Administrative Agent announces from time to time as its prime or base commercial lending rate, as in effect from time to time, (ii) the Federal Funds Effective Rate plus ½ of 1.0% and (iii) one-month Adjusted LIBOR plus 1.0% . The following table discloses the outstanding debt at each balance date as follows (in thousands): June 30, December 31, 2018 Term Facility (1) $ 949,838 $ — 2018 Revolving Facility — — 2014 Term Loan Facility — 236,250 2014 Revolving Credit Facility — — Total Credit Facilities 949,838 236,250 Less: current portion 9,800 45,000 Non-current Credit Facilities $ 940,038 $ 191,250 ______________________________________ (1) The 2018 Term Facility is presented net of unamortized deferred financing fees and original issue discount (“OID”) of $30.2 million . The Company incurred an OID of $14.7 million and deferred financing fees of $16.4 million related to the 2018 Term Facility, which are shown as a direct reduction to the face amount and amortized as interest expense, primarily using the effective interest method, over the life of the 2018 Credit Agreement. The Company incurred $1.9 million in deferred financing fees related to the 2018 Revolving Facility, which is amortized as interest expense using the straight-line method. During the three and six months ended June 30, 2018 , the Company recognized $0.4 million in OID amortization expense and $0.5 million in deferred financing fees related to the 2018 Term Facility. The Company recognized $0.1 million in amortization expense related to the 2018 Revolving Facility during the three and six months ended June 30, 2018 . The Company and its Restricted Subsidiaries (as defined in the 2018 Credit Agreement) are subject to certain affirmative and negative covenants under the 2018 Credit Agreement, and the 2018 Credit Agreement includes certain customary representations and warranties of the Company. As of June 30, 2018 , the Company is in compliance with the covenants under the 2018 Credit Agreement.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 24,934 $ — $ — $ 24,934 Short-term investments: Corporate notes and bonds — 15,674 — 15,674 Other assets: Interest rate swaps — 3,462 — 3,462 Other current liabilities: Interest rate swaps — (2,823 ) — (2,823 ) Contingent consideration — — (16,100 ) (16,100 ) Other liabilities Contingent consideration — — (17,212 ) (17,212 ) Total $ 24,934 $ 16,313 $ (33,312 ) $ 7,935 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, 2017 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 162,347 $ — $ — $ 162,347 Short-term investments: Corporate notes and bonds — 231,479 — 231,479 U.S. agency obligations — 15,242 — 15,242 U.S. treasury securities — 20,567 — 20,567 Other current liabilities: Contingent consideration — — (7,400 ) (7,400 ) Total $ 162,347 $ 267,288 $ (7,400 ) $ 422,235 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) (in thousands): Fair Value Measurements Using Unobservable Inputs (Level 3) June 30, December 31, Balance, beginning of period $ (7,400 ) $ (12,600 ) Fair value adjustment (recognized in general and administrative expenses) (8,700 ) 5,200 Contingent consideration attributable to and assumed from ABILITY Acquisition (17,212 ) — Total $ (33,312 ) $ (7,400 ) 2018 Credit Facilities The Company records debt on the balance sheet at carrying value. The estimated fair value of the Company’s debt is determined based on Level 2 inputs including current market rates for similar types of borrowings. The following table presents the carrying value and fair value of the Company’s debt (including the current portion thereof) as of June 30, 2018 (in thousands): June 30, Carrying amount $ 949,838 Fair value $ 918,968 Interest Rate Swaps In connection with the 2018 Credit Agreement, the Company entered into four interest rate swaps during the second quarter of 2018, each of which mature in March 2025, to mitigate the risk of a rise in interest rates. These interest rate swaps mitigate the exposure on the variable component of interest on the Company’s 2018 Credit Facility. The interest rate swaps fix the LIBOR rate component of interest on $700.0 million of the 2018 Term Facility at a weighted average rate of approximately 2.8% . See “Note 5—Debt” for additional information. These interest rate swaps are designated as cash flow hedges and are deemed highly effective under ASC 815, Derivatives and Hedging . The interest rate swaps are recorded on the balance sheet at fair value as either assets or liabilities and any changes to the fair value are recorded through accumulated other comprehensive income and reclassified into interest expense in the same period in which the hedged transaction is recognized in earnings. Cash flows from interest rate swaps are reported in the same category as the cash flows from the items being hedged. The following table presents the fair value of interest rate swaps on the balance sheet as of June 30, 2018 (in thousands): Asset Derivative Liability Derivative Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swap contract Other assets $ 3,462 Other current liabilities $ (2,823 ) The following table presents the location and amount of gains and losses on interest rate swaps included in other comprehensive income (“OCI”) and the statement of operations for the three and six months ended June 30, 2018 (in thousands): Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (199 ) Interest expense $ 838 The net amount of accumulated other comprehensive income expected to be reclassified to interest expense in the next 12 months is $2.9 million .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES 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. There have been no significant or material developments to current legal proceedings, including the estimated effects on the Company’s condensed consolidated financial statements and note disclosures, subsequent to the disclosure previously provided in Note 10 of the Notes to the Consolidated Financial Statements in the 2017 Form 10-K.

RESTRUCTURING EXPENSE RESTRUCTU

RESTRUCTURING EXPENSE RESTRUCTURING EXPENSE (Notes)	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
RESTRUCTURING EXPENSE	RESTRUCTURING EXPENSE During the second quarter of 2018, the Company completed actions under restructuring programs as part of its continuing efficiency-enhancement and cost-reduction initiatives, both as part of its ongoing margin expansion goals, as well as related to the recent acquisition and ongoing integration of ABILITY. The initiatives primarily related to workforce reductions, site closures, streamlining of software development initiatives, changes in the structure of certain business functions, and strategic initiatives to achieve cost and product development synergies in connection with the ABILITY Acquisition (as defined in “Note 9 —Business Combinations”). During the three and six months ended June 30, 2018 , the Company incurred $9.5 million in restructuring expense which includes $6.4 million related to a streamlining of software development initiatives, $1.8 million in severance expense, and $1.3 million for lease termination costs and accelerated depreciation related to associated leasehold improvements. As of June 30, 2018 , the Company had a remaining restructuring liability associated with severance and lease termination costs of $2.9 million . The following table presents restructuring liability activity for the six months ended June 30, 2018 (in thousands): Balance as of December 31, 2017 $ — Accruals for severance 1,764 Accruals for lease termination 1,405 Severance payments (273 ) Lease termination accretion (8 ) Balance as of June 30, 2018 $ 2,888

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS 2018 Acquisition ABILITY Network, Inc. On April 2, 2018, the Company completed the acquisition (the “ABILITY Acquisition”) of Butler Group Holdings, Inc., a Delaware corporation (“Butler”), and its wholly-owned subsidiaries, including, without limitation, ABILITY Network Inc., a Delaware corporation (“ABILITY”), for aggregate consideration of $1.19 billion (the “Purchase Price”). ABILITY is a leading cloud-based Software-as-a-service (“SaaS”) technology company helping to simplify the administrative and clinical complexities of healthcare. Through the my ABILITY ® software platform, an integrated set of cloud-based applications for providers, ABILITY provides core connectivity, administrative, clinical, and quality analysis, management, and performance improvement capabilities to more than 44,000 acute, post-acute and ambulatory point-of-care provider facilities. The extensive datasets, on-demand compute capability, advanced analytics, and broad healthcare ecosystem connectivity enabled by the Inovalon ONE ® Platform are expected to provide a significant expansion of application offerings within the my ABILITY ® software platform while also expanding the nature and reach of high-value solutions for Inovalon’s existing payer, pharma, and device client-base. The combination of Inovalon and ABILITY creates a vertically integrated cloud-based platform empowering the achievement of real-time, value-based care from payers, manufacturers, and diagnostics all the way to the patient’s point of care. A summary of the composition of the stated Purchase Price and fair value of the stated Purchase Price is as follows (in thousands): Purchase Price $ 1,220,800 Working capital adjustment (630 ) Subtotal 1,220,170 Fair value adjustments: Restricted stock marketability discount (30,000 ) Total fair value purchase price $ 1,190,170 The composition of the fair value of the consideration transferred is as follows (in thousands): Cash $ 1,107,220 Issuance of Class A common stock 70,000 Contingent consideration 13,580 Working capital adjustment (630 ) Total fair value purchase price $ 1,190,170 The ABILITY Acquisition was accounted for using the acquisition method of accounting under ASC No. 805, Business Combinations , which requires that assets acquired and liabilities assumed are recognized at their estimated fair values. The excess of the aggregate consideration over the estimated fair values has been allocated to goodwill. In addition, ASC No. 805 requires that the consideration transferred be measured at the closing date of the ABILITY Acquisition at the then-current market prices. The preliminary value of consideration and the purchase price allocation is subject to adjustment until the Company has completed its analysis within the measurement period. The Company is in the process of reviewing its assumptions related to the fair value of the consideration including any working capital adjustments and estimates of tax related matters. The Purchase Price allocation is preliminary and the finalization of the Company’s Purchase Price allocation may result in changes in the valuation of assets acquired and liabilities assumed. The Company will finalize the Purchase Price allocation as soon as practicable in accordance with ASC No. 805, but not to exceed one year following the ABILITY Acquisition. The preliminary estimates of fair value represent the Company’s best preliminary estimates and preliminary valuations. The following table summarizes the net assets acquired and liabilities assumed (in thousands): Preliminary Fair Value Cash and cash equivalents $ 23,850 Accounts receivable 16,739 Income tax receivable 551 Prepaid expenses and other current assets 3,025 Property and equipment 3,095 Goodwill 749,761 Intangible assets 513,000 Other assets 1,252 Accounts payable and accrued expenses (6,863 ) Deferred revenue (7,000 ) Other current liabilities (507 ) Other liabilities (5,291 ) Deferred tax liabilities (101,442 ) Total consideration transferred $ 1,190,170 The amounts attributed to identified intangible assets are summarized in the table below (in thousands): Estimated Preliminary Customer relationships 12-14 years $ 408,000 Technology 12-14 years 86,000 Trade names 16-18 years 19,000 Total intangible assets $ 513,000 Acquisition-related costs were expensed as incurred. For the three and six months ended June 30, 2018, the Company incurred acquisition-related costs of $1.2 million and $4.5 million , respectively. Acquisition-related costs are recognized within “General and administrative” expenses in the accompanying consolidated statements of operations. The following table presents revenue and income before taxes of ABILITY since the acquisition date, April 2, 2018, included in the consolidated statements of operations (in thousands): Total Revenue $ 37,520 Income before taxes $ 5,798 The following pro forma financial information is based on Inovalon’s and Butler’s historical consolidated financial statements as adjusted to give effect to pro forma events that are (1) directly attributable to the ABILITY Acquisition, (2) factually supportable, and (3) with respect to the unaudited pro forma condensed combined statements of operations, expected to have a continuing impact on the combined results. The pro forma adjustments include, but are not limited to: (i) amortization of acquired intangible assets, (ii) net increase to interest expense resulting from the extinguishment of the 2014 Credit Facilities and historical Butler debt, borrowings under the 2018 Term Facility and the amortization of related debt issuance costs, and (iii) elimination of non-recurring acquisition and integration-related expenses. The following pro forma financial information is unaudited and gives effect to the transactions as if they had occurred on January 1, 2017 (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 152,798 $ 145,038 $ 282,917 $ 287,005 Income (Loss) before taxes $ (16,543 ) $ (1,331 ) $ (43,619 ) $ (10,221 ) The unaudited pro forma revenue and income (loss) before taxes was prepared for informational purposes only based on estimates and assumptions that the Company believes to be reasonable and is not necessarily indicative of the results of operations that would have occurred if the ABILITY Acquisition had been completed on the date indicated nor of the future financial position or results of operations following completion of the ABILITY Acquisition. 2017 Acquisition ComplexCare Solutions Acquisition On July 6, 2017, the Company completed the acquisition of ComplexCare Solutions, Inc. and ComplexCare Solutions IPA, LLC (together, “CCS”). CCS is a company that provides technology-enabled interventions and member engagement coordination services for a number of payers and employers throughout the United States. The fair value included in the consolidated financial statements represents the Company’s best estimates and valuations in conformity with ASC No. 820, Fair Value Measurements and Disclosures . The final purchase price was allocated to identifiable assets acquired and liabilities assumed based upon valuation procedures performed. The Company acquired all of the capital stock of CCS for approximately $4.5 million in cash and the settlement of an existing payable to CCS of $2.3 million . The Company acquired approximately $9.8 million of assets, including approximately $1.5 million of cash and approximately $3.9 million of liabilities. The net assets acquired exceeded the consideration paid by approximately $1.4 million , and as such the Company recorded a bargain purchase gain in general and administrative expenses for the year ended December 31, 2017.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements have been prepared by Inovalon Holdings, Inc. (“Inovalon” or 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, 2017 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 June 30, 2018 , the results of operations and comprehensive (loss) income for the three and six month periods ended June 30, 2018 and 2017 , and cash flows for the six months ended June 30, 2018 and 2017 . The results of operations for the three and six month periods ended June 30, 2018 and 2017 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, 2017 (the “ 2017 Form 10-K”). Certain prior period amounts have been reclassified within the operating section of the condensed consolidated statements of cash flows, and within the investing section of the statements of cash flows to conform with current period presentation. Such reclassifications had no impact on net cash provided by operating activities or net cash (used in) provided by investing activities as previously reported. 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 Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers and subsequent clarifying guidance (“ASU 2014-09”). 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 Company adopted this standard on January 1, 2018 using the modified retrospective approach. Refer to “Note 2—Revenue.” In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . The update amends the guidance in Accounting Standards Codification (“ASC”) 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 Company adopted the requirements of the new standard in the first quarter of 2018 and there was no material impact on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The update amends the current hedge accounting model and eliminates the requirement to separately measure and report hedge ineffectiveness. This guidance also requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedged item. The update also eases documentation and assessment requirements, modifies certain disclosure requirements, and modifies the method of accounting for components excluded from the assessment of hedge effectiveness. The Company adopted the requirements of the new standard in the second quarter of 2018 concurrent with entering into four interest rate swaps. Refer to “Note 6 —Fair Value Measurements.” In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The guidance is effective for all public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This guidance allows for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) which was signed into law on December 22, 2017. Early adoption is permitted in any interim period or fiscal year before the effective date. The Company early adopted the requirements of the new standard in the first quarter of 2018, and elected to reclassify the income tax effects of the Tax Act of $0.1 million from other comprehensive income to retained earnings. Refer to the condensed consolidated statements of comprehensive (loss) income. 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 2017 Form 10-K, that would be expected to impact the Company except for the following:

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by offering (in thousands): Three Months Ended Six Months Ended 2018 2017 (1) 2018 2017 Platform solutions (2) $ 138,209 $ 96,072 $ 217,175 $ 187,504 Services (3) 14,589 14,506 28,378 31,380 Total revenue $ 152,798 $ 110,578 $ 245,553 $ 218,884 ______________________________________ (1) Prior period amounts have not been adjusted under the modified retrospective method. (2) Platform solutions include arrangements for technology-based offerings representing subscription-based cloud-based platform offerings and legacy platform solutions that are not cloud-based and not billed under a subscription-based contract structure. (3) Services include advisory, implementation, and support services under time and materials, fixed price, or retainer-based contracts.

NET (LOSS) INCOME PER SHARE (Ta

NET (LOSS) INCOME PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of numerators and denominators of the basic and diluted EPS	The following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated (in thousands, except per share amounts): Three Months Ended Six Months Ended 2018 2017 2018 2017 Basic Numerator: Net (loss) income $ (10,466 ) $ 5,486 $ (27,300 ) $ 9,128 Undistributed earnings allocated to participating securities — (148 ) — (215 ) Net (loss) income attributable to common stockholders—basic $ (10,466 ) $ 5,338 $ (27,300 ) $ 8,913 Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 147,181 142,632 143,301 143,680 Net (loss) income per share attributable to common stockholders—basic $ (0.07 ) $ 0.04 $ (0.19 ) $ 0.06 Diluted Numerator: Net (loss) income attributable to common stockholders—diluted $ (10,466 ) $ 5,338 $ (27,300 ) $ 8,913 Denominator: Number of shares used for basic EPS computation 147,181 142,632 143,301 143,680 Effect of dilutive securities — 440 — 443 Weighted average shares used in computing net income per share attributable to common stockholders—diluted 147,181 143,072 143,301 144,123 Net (loss) income per share attributable to common stockholders—diluted $ (0.07 ) $ 0.04 $ (0.19 ) $ 0.06
Schedule of antidilutive securities excluded from computation of earnings per share	The awards excluded because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Awards excluded from the computation of diluted net (loss) income per share because their inclusion would have been anti-dilutive 141 135 132 213

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Schedule of short-term investments	As of June 30, 2018 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 15,770 $ — $ (96 ) $ 15,674 Total available-for-sale securities $ 15,770 $ — $ (96 ) $ 15,674 As of December 31, 2017 , short-term investments consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale securities: Corporate notes and bonds $ 232,048 $ 3 $ (572 ) $ 231,479 U.S. agency obligations 15,341 — (99 ) 15,242 U.S. treasury securities 20,735 — (168 ) 20,567 Total available-for-sale securities $ 268,124 $ 3 $ (839 ) $ 267,288
Summary of estimated fair value of short-term investments, designated as available-for-sale and classified by the contractual maturity	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 (in thousands): June 30, December 31, Due in one year or less $ 15,177 $ 204,725 Due after one year through two years 497 62,563 Total $ 15,674 $ 267,288
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 June 30, 2018 , aggregated by investment category (in thousands): Estimated Fair Value Gross Unrealized Losses Corporate notes and bonds $ 15,674 $ (96 )

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Line of Credit Facilities	The following table discloses the outstanding debt at each balance date as follows (in thousands): June 30, December 31, 2018 Term Facility (1) $ 949,838 $ — 2018 Revolving Facility — — 2014 Term Loan Facility — 236,250 2014 Revolving Credit Facility — — Total Credit Facilities 949,838 236,250 Less: current portion 9,800 45,000 Non-current Credit Facilities $ 940,038 $ 191,250 ______________________________________ (1) The 2018 Term Facility is presented net of unamortized deferred financing fees

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
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 June 30, 2018 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 24,934 $ — $ — $ 24,934 Short-term investments: Corporate notes and bonds — 15,674 — 15,674 Other assets: Interest rate swaps — 3,462 — 3,462 Other current liabilities: Interest rate swaps — (2,823 ) — (2,823 ) Contingent consideration — — (16,100 ) (16,100 ) Other liabilities Contingent consideration — — (17,212 ) (17,212 ) Total $ 24,934 $ 16,313 $ (33,312 ) $ 7,935 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, 2017 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 162,347 $ — $ — $ 162,347 Short-term investments: Corporate notes and bonds — 231,479 — 231,479 U.S. agency obligations — 15,242 — 15,242 U.S. treasury securities — 20,567 — 20,567 Other current liabilities: Contingent consideration — — (7,400 ) (7,400 ) Total $ 162,347 $ 267,288 $ (7,400 ) $ 422,235
Schedule of financial instruments measured at fair value using unobservable inputs (Level 3)	The following table presents our financial instruments measured at fair value using unobservable inputs (Level 3) (in thousands): Fair Value Measurements Using Unobservable Inputs (Level 3) June 30, December 31, Balance, beginning of period $ (7,400 ) $ (12,600 ) Fair value adjustment (recognized in general and administrative expenses) (8,700 ) 5,200 Contingent consideration attributable to and assumed from ABILITY Acquisition (17,212 ) — Total $ (33,312 ) $ (7,400 )
Fair Value, by Balance Sheet Grouping	The following table presents the carrying value and fair value of the Company’s debt (including the current portion thereof) as of June 30, 2018 (in thousands): June 30, Carrying amount $ 949,838 Fair value $ 918,968
Description of Location of Interest Rate Derivatives on Balance Sheet	The following table presents the fair value of interest rate swaps on the balance sheet as of June 30, 2018 (in thousands): Asset Derivative Liability Derivative Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest rate swap contract Other assets $ 3,462 Other current liabilities $ (2,823 )
Reclassification out of Accumulated Other Comprehensive Income	The following table presents the location and amount of gains and losses on interest rate swaps included in other comprehensive income (“OCI”) and the statement of operations for the three and six months ended June 30, 2018 (in thousands): Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (199 ) Interest expense $ 838

RESTRUCTURING EXPENSE RESTRUC25

RESTRUCTURING EXPENSE RESTRUCTURING EXPENSE (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following table presents restructuring liability activity for the six months ended June 30, 2018 (in thousands): Balance as of December 31, 2017 $ — Accruals for severance 1,764 Accruals for lease termination 1,405 Severance payments (273 ) Lease termination accretion (8 ) Balance as of June 30, 2018 $ 2,888

BUSINESS COMBINATIONS BUSINESS

BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The composition of the fair value of the consideration transferred is as follows (in thousands): Cash $ 1,107,220 Issuance of Class A common stock 70,000 Contingent consideration 13,580 Working capital adjustment (630 ) Total fair value purchase price $ 1,190,170 A summary of the composition of the stated Purchase Price and fair value of the stated Purchase Price is as follows (in thousands): Purchase Price $ 1,220,800 Working capital adjustment (630 ) Subtotal 1,220,170 Fair value adjustments: Restricted stock marketability discount (30,000 ) Total fair value purchase price $ 1,190,170
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the net assets acquired and liabilities assumed (in thousands): Preliminary Fair Value Cash and cash equivalents $ 23,850 Accounts receivable 16,739 Income tax receivable 551 Prepaid expenses and other current assets 3,025 Property and equipment 3,095 Goodwill 749,761 Intangible assets 513,000 Other assets 1,252 Accounts payable and accrued expenses (6,863 ) Deferred revenue (7,000 ) Other current liabilities (507 ) Other liabilities (5,291 ) Deferred tax liabilities (101,442 ) Total consideration transferred $ 1,190,170
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The amounts attributed to identified intangible assets are summarized in the table below (in thousands): Estimated Preliminary Customer relationships 12-14 years $ 408,000 Technology 12-14 years 86,000 Trade names 16-18 years 19,000 Total intangible assets $ 513,000
Business Acquisition, Pro Forma Information	The following pro forma financial information is unaudited and gives effect to the transactions as if they had occurred on January 1, 2017 (in thousands): Three Months Ended Six Months Ended 2018 2017 2018 2017 Revenue $ 152,798 $ 145,038 $ 282,917 $ 287,005 Income (Loss) before taxes $ (16,543 ) $ (1,331 ) $ (43,619 ) $ (10,221 ) The following table presents revenue and income before taxes of ABILITY since the acquisition date, April 2, 2018, included in the consolidated statements of operations (in thousands): Total Revenue $ 37,520 Income before taxes $ 5,798

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification of income tax effects of the Tax Cuts and Jobs Act of 2017	$ 0	$ 0	$ 102	$ 0

REVENUE - Additional Informatio

REVENUE - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings	$ 282,335,000		$ 282,335,000			$ 308,905,000
Revenue	152,798,000	$ 110,578,000	245,553,000	$ 218,884,000
Unbilled receivables	8,100,000		8,100,000			14,100,000
Increase (decrease) in unbilled receivables			2,100,000
Deferred sales commission	2,100,000		2,100,000			0
Increase (decrease) in deferred commissions			1,300,000
Deferred Revenue	18,200,000		18,200,000			$ 7,000,000
Increase (decrease) in deferred revenue			4,241,000	$ 10,000
Deferred revenue, revenue recognized	4,400,000		6,200,000
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Retained earnings					$ 600,000
Revenue	200,000		400,000
Sales commissions	$ 100,000		200,000
ABILITY Network
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Increase (decrease) in deferred revenue			$ 7,600,000

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 152,798	$ 110,578	$ 245,553	$ 218,884
Platform Solutions
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	138,209	96,072	217,175	187,504
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 14,589	$ 14,506	$ 28,378	$ 31,380

NET (LOSS) INCOME PER SHARE - T

NET (LOSS) INCOME PER SHARE - Tabular Disclosure (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic
Net (loss) income	$ (10,466)	$ 5,486	$ (27,300)	$ 9,128
Undistributed earnings allocated to participating securities	0	(148)	0	(215)
Net (loss) income attributable to common stockholders—basic	$ (10,466)	$ 5,338	$ (27,300)	$ 8,913
Weighted average shares used in computing net income per share attributable to common stockholders - basic (in shares)	147,181	142,632	143,301	143,680
Net (loss) income per share attributable to common stockholders - basic (in dollars per share)	$ (0.07)	$ 0.04	$ (0.19)	$ 0.06
Diluted
Net (loss) income attributable to common stockholders—diluted	$ (10,466)	$ 5,338	$ (27,300)	$ 8,913
Effect of dilutive securities (in shares)	0	440	0	443
Weighted average shares used in computing net income per share attributable to common stockholders - diluted (in shares)	147,181	143,072	143,301	144,123
Net (loss) income per share attributable to common stockholders - diluted (in dollars per share)	$ (0.07)	$ 0.04	$ (0.19)	$ 0.06

NET (LOSS) INCOME PER SHARE - A

NET (LOSS) INCOME PER SHARE - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
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 (in shares)	141	135	132	213

SHORT-TERM INVESTMENTS - Availa

SHORT-TERM INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Available-for-sale securities:
Amortized Cost	$ 15,770	$ 268,124
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(96)	(839)
Estimated Fair Value	15,674	267,288
Corporate notes and bonds
Available-for-sale securities:
Amortized Cost	15,770	232,048
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(96)	(572)
Estimated Fair Value	$ 15,674	231,479
U.S. agency obligations
Available-for-sale securities:
Amortized Cost		15,341
Gross Unrealized Gains		0
Gross Unrealized Losses		(99)
Estimated Fair Value		15,242
U.S. treasury securities
Available-for-sale securities:
Amortized Cost		20,735
Gross Unrealized Gains		0
Gross Unrealized Losses		(168)
Estimated Fair Value		$ 20,567

SHORT-TERM INVESTMENTS - Estima

SHORT-TERM INVESTMENTS - Estimated Fair Value by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Due in one year or less	$ 15,177	$ 204,725
Due after one year through two years	497	62,563
Available-for-sale Securities, Debt Securities, Current	15,674
Total	$ 15,674	$ 267,288

SHORT-TERM INVESTMENTS - Other-

SHORT-TERM INVESTMENTS - Other-than-temporary Impairments (Details)	6 Months Ended
	Jun. 30, 2018USD ($)
Investments, Debt and Equity Securities [Abstract]
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) - Corporate notes and bonds $ in Thousands	Jun. 30, 2018USD ($)
Fair Values and Gross Unrealized Losses of Available-for-sale Securities in a Gross Loss Position
Estimated Fair Value	$ 15,674
Gross Unrealized Losses	$ (96)

DEBT - Additional Information (

DEBT - Additional Information (Details) - USD ($) $ in Thousands	Apr. 02, 2018	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Sep. 19, 2014
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 980,000
Loss on extinguishment of debt		$ 129		$ 0	$ 129	$ 0
Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			3.50%
Line of Credit | London Interbank Offered Rate (LIBOR) | Applicable Rate if Leverage Ratio is Equal to or Falls Below 4.00 to 1.00
Debt Instrument [Line Items]
Basis spread on variable rate			3.25%
Line of Credit | Adjusted LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
Line of Credit | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Goldman Sachs Bank USA | Unsecured Debt
Debt Instrument [Line Items]
Face amount							$ 400,000
Goldman Sachs Bank USA | Unsecured Debt | Unsecured Debt
Debt Instrument [Line Items]
Face amount							300,000
Goldman Sachs Bank USA | Unsecured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Face amount							$ 100,000
Morgan Stanley Senior Funding, Inc. | Revolving Credit Facility
Debt Instrument [Line Items]
Debt issuance costs, net	1,900
Amortization of Debt Issuance Costs		100			100
Morgan Stanley Senior Funding, Inc. | Secured Debt
Debt Instrument [Line Items]
Debt issuance costs, net	16,400
Amortization of Debt Discount (Premium)		400			400
Amortization of Debt Issuance Costs		$ 500			$ 500
Debt Instrument, Unamortized Discount	14,700
Morgan Stanley Senior Funding, Inc. | Secured Debt
Debt Instrument [Line Items]
Face amount	980,000
Morgan Stanley Senior Funding, Inc. | Secured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Face amount	$ 100,000

DEBT - Schedule of Debt (Detail

DEBT - Schedule of Debt (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 949,838,000	$ 236,250,000
Credit facilities	9,800,000	45,000,000
Credit facilities, less current portion	940,038,000	191,250,000
Morgan Stanley Senior Funding, Inc. | Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term Line of Credit	0	0
Morgan Stanley Senior Funding, Inc. | Secured Debt
Line of Credit Facility [Line Items]
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums	30,200,000
Long-term Line of Credit	949,838,000	0
Goldman Sachs Bank USA | Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term Line of Credit	0	0
Goldman Sachs Bank USA | Unsecured Debt
Line of Credit Facility [Line Items]
Long-term Line of Credit	$ 0	$ 236,250,000

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Short-term investments:
Short-term investments	$ 15,674	$ 267,288
Corporate notes and bonds
Short-term investments:
Short-term investments	15,674	231,479
U.S. agency obligations
Short-term investments:
Short-term investments		15,242
U.S. treasury securities
Short-term investments:
Short-term investments		20,567
Recurring
Liabilities / Other Current Liabilities:
Total	7,935	422,235
Recurring | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration		(7,400)
Recurring | Contingent consideration | Creehan Holding Co Inc
Liabilities / Other Current Liabilities:
Contingent consideration	(16,100)
Recurring | Contingent consideration | ABILITY Network
Liabilities / Other Current Liabilities:
Contingent consideration	(17,212)
Recurring | Corporate notes and bonds
Short-term investments:
Short-term investments	15,674	231,479
Recurring | U.S. agency obligations
Short-term investments:
Short-term investments		15,242
Recurring | U.S. treasury securities
Short-term investments:
Short-term investments		20,567
Recurring | Interest Rate Swap
Other assets:
Interest rate swaps	3,462
Liabilities / Other Current Liabilities:
Interest rate swaps	(2,823)
Recurring | Money market funds
Cash equivalents:
Cash equivalents	24,934	162,347
Recurring | Level 1
Liabilities / Other Current Liabilities:
Total	24,934	162,347
Recurring | Level 1 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration		0
Recurring | Level 1 | Contingent consideration | Creehan Holding Co Inc
Liabilities / Other Current Liabilities:
Contingent consideration	0
Recurring | Level 1 | Contingent consideration | ABILITY Network
Liabilities / Other Current Liabilities:
Contingent consideration	0
Recurring | Level 1 | Corporate notes and bonds
Short-term investments:
Short-term investments	0	0
Recurring | Level 1 | U.S. agency obligations
Short-term investments:
Short-term investments		0
Recurring | Level 1 | U.S. treasury securities
Short-term investments:
Short-term investments		0
Recurring | Level 1 | Interest Rate Swap
Other assets:
Interest rate swaps	0
Liabilities / Other Current Liabilities:
Interest rate swaps	0
Recurring | Level 1 | Money market funds
Cash equivalents:
Cash equivalents	24,934	162,347
Recurring | Level 2
Liabilities / Other Current Liabilities:
Total	16,313	267,288
Recurring | Level 2 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration		0
Recurring | Level 2 | Contingent consideration | Creehan Holding Co Inc
Liabilities / Other Current Liabilities:
Contingent consideration	0
Recurring | Level 2 | Contingent consideration | ABILITY Network
Liabilities / Other Current Liabilities:
Contingent consideration	0
Recurring | Level 2 | Corporate notes and bonds
Short-term investments:
Short-term investments	15,674	231,479
Recurring | Level 2 | U.S. agency obligations
Short-term investments:
Short-term investments		15,242
Recurring | Level 2 | U.S. treasury securities
Short-term investments:
Short-term investments		20,567
Recurring | Level 2 | Interest Rate Swap
Other assets:
Interest rate swaps	3,462
Liabilities / Other Current Liabilities:
Interest rate swaps	(2,823)
Recurring | Level 2 | Money market funds
Cash equivalents:
Cash equivalents	0	0
Recurring | Level 3
Liabilities / Other Current Liabilities:
Total	(33,312)	(7,400)
Recurring | Level 3 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration		(7,400)
Recurring | Level 3 | Contingent consideration | Creehan Holding Co Inc
Liabilities / Other Current Liabilities:
Contingent consideration	(16,100)
Recurring | Level 3 | Contingent consideration | ABILITY Network
Liabilities / Other Current Liabilities:
Contingent consideration	(17,212)
Recurring | Level 3 | Corporate notes and bonds
Short-term investments:
Short-term investments	0	0
Recurring | Level 3 | U.S. agency obligations
Short-term investments:
Short-term investments		0
Recurring | Level 3 | U.S. treasury securities
Short-term investments:
Short-term investments		0
Recurring | Level 3 | Interest Rate Swap
Other assets:
Interest rate swaps	0
Liabilities / Other Current Liabilities:
Interest rate swaps	0
Recurring | Level 3 | Money market funds
Cash equivalents:
Cash equivalents	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair Value Measurements Using Unobservable Inputs (Level 3)
Contingent consideration liability	$ (8,700)	$ 0
Level 3
Fair Value Measurements Using Unobservable Inputs (Level 3)
Balance, beginning of period	(7,400)	$ (12,600)	$ (12,600)
Fair value adjustment (recognized in general and administrative expenses)	(8,700)		5,200
Total	(33,312)		(7,400)
Contingent Consideration Attributable to Acquisition | Level 3
Fair Value Measurements Using Unobservable Inputs (Level 3)
Contingent consideration liability	$ 17,212		$ 0

FAIR VALUE MEASUREMENTS FAIR VA

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Debt (Details) $ in Thousands	Jun. 30, 2018USD ($)
Additional Fair Value Elements [Abstract]
Carrying amount	$ 949,838
Fair value	$ 918,968

FAIR VALUE MEASUREMENTS FAIR 41

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Interest Rate Swaps Narrative (Details)	6 Months Ended
	Jun. 30, 2018USD ($)
Derivatives, Fair Value [Line Items]
Estimate of time to transfer	12 months
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net	$ 2,900,000
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Amount of hedged item	$ 700,000,000
Derivative, fixed interest rate	2.80%

FAIR VALUE MEASUREMENTS FAIR 42

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Fair Value of Interest Rate Swaps (Details) - Interest Rate Swap $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Derivative Asset [Abstract]
Fair Value	$ 3,462
Derivative Liability [Abstract]
Fair Value	(2,823)
Gain (Loss) recognized in OCI	(199)
(Gain) Loss reclassified from OCI	$ 838

RESTRUCTURING EXPENSE RESTRUC43

RESTRUCTURING EXPENSE RESTRUCTURING EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring expense	$ 9,464	$ 0	$ 9,464	$ 0
Capitalized computer software, impairments	6,400
Lease termination costs and accelerated depreciation related to leasehold improvements	1,300		1,300
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2017			0
Accruals for severance	1,800		1,764
Accruals for lease termination			1,405
Severance payments			(273)
Lease termination accretion			(8)
Balance as of June 30, 2018	$ 2,888		$ 2,888

BUSINESS COMBINATIONS - Additio

BUSINESS COMBINATIONS - Additional Information (Details) facility in Thousands, $ in Thousands	Jul. 06, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)facility	Dec. 31, 2017USD ($)
ABILITY Network
Business Acquisition [Line Items]
Consideration transferred			$ 1,190,170
Number of provider facilities | facility			44
Acquisition related costs		$ 1,200	$ 4,500
Payments to acquire businesses, gross			1,107,220
Cash acquired		$ 23,850	$ 23,850
ComplexCare Solutions, Inc.
Business Acquisition [Line Items]
Payments to acquire businesses, gross	$ 4,500
Liabilities incurred	2,300
Assets acquired	9,800
Cash acquired	1,500
Liabilities assumed	$ 3,900
Bargain purchase, gain recognized, amount				$ 1,400

BUSINESS COMBINATIONS - Stated

BUSINESS COMBINATIONS - Stated Purchase Price and Fair Value of the Purchase Price (Details) - ABILITY Network $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Business Acquisition [Line Items]
Purchase Price	$ 1,220,800
Working capital adjustment	(630)
Subtotal	1,220,170
Restricted stock marketability discount	(30,000)
Total fair value purchase price	$ 1,190,170

BUSINESS COMBINATIONS - Fair Va

BUSINESS COMBINATIONS - Fair Value of Consideration Transferred (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Contingent consideration	$ (8,700)	$ 0
ABILITY Network
Business Acquisition [Line Items]
Cash	1,107,220
Issuance of Class A common stock	70,000
Contingent consideration	13,580
Working capital adjustment	(630)
Total fair value purchase price	$ 1,190,170

BUSINESS COMBINATIONS - Purchas

BUSINESS COMBINATIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 934,693	$ 184,932
ABILITY Network
Business Acquisition [Line Items]
Cash acquired	23,850
Accounts receivable	16,739
Income tax receivable	551
Prepaid expenses and other current assets	3,025
Property and equipment	3,095
Goodwill	749,761
Intangible assets	513,000
Other assets	1,252
Accounts payable and accrued expenses	(6,863)
Deferred revenue	(7,000)
Other current liabilities	(507)
Other liabilities	(5,291)
Deferred tax liabilities	(101,442)
Total consideration transferred	$ 1,190,170

BUSINESS COMBINATIONS - Identif

BUSINESS COMBINATIONS - Identified Intangible Assets (Details) - ABILITY Network $ in Thousands	3 Months Ended
	Jun. 30, 2018USD ($)
Business Acquisition [Line Items]
Preliminary Fair Value	$ 513,000
Customer Relationships
Business Acquisition [Line Items]
Preliminary Fair Value	408,000
Technology-Based Intangible Assets
Business Acquisition [Line Items]
Preliminary Fair Value	86,000
Trade Names
Business Acquisition [Line Items]
Preliminary Fair Value	$ 19,000
Minimum | Customer Relationships
Business Acquisition [Line Items]
Estimated Useful Life	12 years
Minimum | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Estimated Useful Life	12 years
Minimum | Trade Names
Business Acquisition [Line Items]
Estimated Useful Life	16 years
Maximum | Customer Relationships
Business Acquisition [Line Items]
Estimated Useful Life	14 years
Maximum | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Estimated Useful Life	14 years
Maximum | Trade Names
Business Acquisition [Line Items]
Estimated Useful Life	18 years

BUSINESS COMBINATIONS - Results

BUSINESS COMBINATIONS - Results of Acquiree (Details) - ABILITY Network $ in Thousands	3 Months Ended
	Jun. 30, 2018USD ($)
Business Acquisition [Line Items]
Revenue	$ 37,520
Income before taxes	$ 5,798

BUSINESS COMBINATIONS - Proform

BUSINESS COMBINATIONS - Proforma Impact (Details) - ABILITY Network - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Revenue	$ 152,798	$ 145,038	$ 282,917	$ 287,005
Income (Loss) before taxes	$ (16,543)	$ (1,331)	$ (43,619)	$ (10,221)