Inovalon (INOV) 10-Q 1 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 19, 2019
Entity Registrant Name	Inovalon Holdings, Inc.
Entity Central Index Key	0001619954
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
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	2019
Document Fiscal Period Focus	Q1
Entity Small Business	false
Entity Emerging Growth Company	false
Class A Common
Entity Common Stock, Shares Outstanding (in shares)		73,102,741
Class B Common
Entity Common Stock, Shares Outstanding (in shares)		80,148,225

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 119,880	$ 115,591
Short-term investments	1,810	7,000
Accounts receivable (net of allowances of $4,296 and $3,350 at March 31, 2019 and December 31, 2018, respectively)	117,353	104,405
Prepaid expenses and other current assets	20,442	34,801
Income tax receivable	7,637	10,330
Total current assets	267,122	272,127
Non-current assets:
Property, equipment and capitalized software, net	138,282	141,758
Operating lease, right-of-use asset	32,331	0
Goodwill	955,881	956,029
Intangible assets, net	522,227	535,343
Other assets	16,019	16,158
Total assets	1,931,862	1,921,415
Current liabilities:
Accounts payable and accrued expenses	30,163	31,295
Accrued compensation	22,455	25,298
Other current liabilities	37,420	51,384
Deferred revenue	28,833	20,628
Credit facilities	9,800	9,800
Operating lease liabilities	9,982	0
Finance lease liabilities	2,347	2,905
Total current liabilities	141,000	141,310
Non-current liabilities:
Credit facilities, less current portion	938,043	939,514
Operating lease liabilities, less current portion	27,357	0
Finance lease liabilities, less current portion	14,154	13,927
Other liabilities	37,145	33,406
Deferred income taxes	103,874	110,669
Total liabilities	1,261,573	1,238,826
Commitments and contingencies (Note 8)	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 March 31, 2019 and December 31, 2018, respectively	0	0
Additional paid-in-capital	622,751	618,674
Retained earnings	262,148	270,471
Treasury stock, at cost, 14,620,175 shares at March 31, 2019 and December 31, 2018, respectively	(199,817)	(199,817)
Other comprehensive loss	(14,794)	(6,740)
Total stockholders’ equity	670,289	682,589
Total liabilities and stockholders’ equity	1,931,862	1,921,415
Class A Common
Stockholders’ equity:
Common stock	0	0
Class B Common
Stockholders’ equity:
Common stock	$ 1	$ 1

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Accounts receivable, allowances
Accounts receivable, allowances (in dollars)	$ 4,296	$ 3,350
Commitments and contingencies (Note 8)	$ 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)	87,816,006	86,679,575
Common stock, outstanding (in shares)	73,195,831	72,059,400
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)	80,148,685	80,608,685
Common stock, outstanding (in shares)	80,148,685	80,608,685

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Revenue		$ 145,491	$ 92,755
Expenses:
Cost of revenue	[1]	37,203	33,491
Sales and marketing	[1]	13,526	7,902
Research and development	[1]	8,201	6,421
General and administrative	[1]	53,623	49,396
Depreciation and amortization		27,047	16,380
Total operating expenses		139,600	113,590
Income (Loss) from operations		5,891	(20,835)
Other income and (expenses):
Interest income		610	1,395
Interest expense		(16,542)	(1,882)
Other Nonoperating Income (Expense)		(11)	(1,120)
Loss before taxes		(10,052)	(22,442)
Benefit from income taxes		(1,729)	(5,608)
Net loss		(8,323)	(16,834)
Net loss attributable to common stockholders, basic and diluted		$ (8,323)	$ (16,272)
Net loss per share attributable to common stockholders, basic and diluted:
Basic net (loss) income per share (in dollars per share)		$ (0.06)	$ (0.12)
Diluted net (loss) income per share (in dollars per share)		$ (0.06)	$ (0.12)
Weighted average shares of common stock outstanding:
Basic (in shares)		147,774	139,378
Diluted (in shares)		147,774	139,378
[1]	(1)Includes stock-based compensation expense as follows: Cost of revenue$77 $140 Sales and marketing300 469 Research and development370 628 General and administrative4,492 2,511 Total stock-based compensation expense$5,239 $3,748

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 5,239	$ 3,748
Cost of revenue
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	77	140
Sales and marketing
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	300	469
Research and development
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	370	628
General and administrative
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 4,492	$ 2,511

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (8,323)	$ (16,834)
Other comprehensive loss:
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(359)	0
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax	(8,424)	0
Realized losses on short-term investments reclassified from accumulated other comprehensive income, net of tax of $0 and $(319), respectively	0	716
Net change in unrealized gains and (losses) on available-for-sale investments, net of tax of $(5) and $105, respectively	11	(235)
Reclassification of income tax effects of the Tax Cuts and Jobs Act of 2017	0	(102)
Comprehensive loss	$ (16,377)	$ (16,455)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net change in unrealized gains and (losses) on cash flow hedges, tax	$ (170)	$ 0
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	3,984	0
Realized gains on short-term investments reclassified from accumulated other comprehensive income, tax	0	(319)
Net change in unrealized gains on available-for-sale investments, tax	$ (5)	$ 105

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (8,323)	$ (16,834)
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	5,239	3,748
Depreciation	13,931	12,529
Amortization of intangibles	13,116	3,851
Amortization of debt issuance costs and debt discount	1,072	0
Deferred income taxes	(2,671)	(5,922)
Change in fair value of contingent consideration	379	200
Other	1,129	1,352
Changes in assets and liabilities:
Accounts receivable	(13,893)	11,669
Prepaid expenses and other current assets	(802)	(2,560)
Income taxes receivable	2,830	177
Other assets	19	(3,264)
Accounts payable and accrued expenses	182	(1,669)
Accrued compensation	(3,602)	(4,017)
Other current and non-current liabilities	(2,056)	2,499
Deferred revenue	8,205	5,115
Net cash provided by operating activities	14,755	6,874
Cash flows from investing activities:
Maturities of short-term investments	5,164	63,470
Sales of short-term investments	0	161,772
Purchases of property and equipment	(3,796)	(9,645)
Investment in capitalized software	(7,626)	(11,125)
Net cash (used in) provided by investing activities	(6,258)	204,472
Cash flows from financing activities:
Repayment of credit facility borrowings	(2,450)	(11,250)
Proceeds from exercise of stock options	0	1,450
Finance lease liabilities paid	(672)	(31)
Tax payments for equity award issuances	(1,086)	(459)
Net cash used in financing activities	(4,208)	(10,290)
Increase in cash and cash equivalents	4,289	201,056
Cash and cash equivalents, beginning of period	115,591	208,944
Cash and cash equivalents, end of period	119,880	410,000
Supplementary cash flow disclosure:
Cash paid during the period for: Income taxes, net of refunds	(1,931)	205
Cash paid during the period for: Interest	15,602	1,759
Non-cash transactions:
Operating lease obligations incurred	2,990	0
Finance lease obligations incurred	0	4,536
Accruals for purchases of property, equipment	1,590	6,675
Accruals for investment in capitalized software	$ 1,776	$ 1,882

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY Consolidated Statement of Stockholder's Equity - USD ($) $ in Thousands	Total	Common StockClass A Common	Common StockClass B Common	Treasury Stock	Additional Paid-in Capital	Retained Earnings	AOCI Attributable to Parent
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to retained earnings for adoption of ASU | Calculated under Revenue Guidance in Effect before Topic 606	$ 628					$ 628
Adjustment to retained earnings for adoption of ASU | Accounting Standards Update 2018-02	102					102
Beginning balance (in shares) at Dec. 31, 2017		77,588,018	80,957,495	(14,620,175)
Beginning balance at Dec. 31, 2017	642,772	$ 0	$ 1	$ (199,817)	$ 534,159	308,905	$ (476)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	3,723				3,723
Exercise of stock options (in shares)		211,002
Exercise of stock options	1,450				1,450
Conversion Class B to Class A common stock (in shares)		348,810	348,810
Issuance of shares related to restricted stock units and awards (in shares)		452,657
Shares withheld for employee taxes upon conversion of restricted stock (in shares)		(33,980)
Shares withheld for employee taxes upon conversion of restricted stock	(459)				(459)
Other comprehensive loss	379						379
Net (loss)	(16,834)					(16,834)
Ending balance (in shares) at Mar. 31, 2018		78,566,507	80,608,685	(14,620,175)
Ending balance at Mar. 31, 2018	631,761	$ 0	$ 1	$ (199,817)	538,873	292,801	(97)
Beginning balance (in shares) at Dec. 31, 2018		86,679,575	80,608,685	(14,620,175)
Beginning balance at Dec. 31, 2018	682,589	$ 0	$ 1	$ (199,817)	618,674	270,471	(6,740)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	5,163				5,163
Conversion Class B to Class A common stock (in shares)		460,000	460,000
Issuance of shares related to restricted stock units and awards (in shares)		759,409
Shares withheld for employee taxes upon conversion of restricted stock (in shares)		(82,978)
Shares withheld for employee taxes upon conversion of restricted stock	(1,086)				(1,086)
Other comprehensive loss	(8,054)						(8,054)
Net (loss)	(8,323)					(8,323)
Ending balance (in shares) at Mar. 31, 2019		87,816,006	80,148,685	(14,620,175)
Ending balance at Mar. 31, 2019	$ 670,289	$ 0	$ 1	$ (199,817)	$ 622,751	$ 262,148	$ (14,794)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited 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 consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2018 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 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, 2019 , the results of operations, comprehensive loss, stockholders’ equity, and cash flows for the three month periods ended March 31, 2019 and 2018 . The results of operations for the three month periods ended March 31, 2019 and 2018 are not necessarily indicative of the results to be expected for the full year. The preparation of 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, 2018 (the “ 2018 Form 10-K”). Certain prior period amounts have been reclassified within the consolidated statements of operations, within the current and non-current liabilities section of the consolidated balance sheets, and within the operating section of the consolidated statements of cash flows to conform with current period presentation. Such reclassifications had no impact on net loss, current and non-current liabilities, or net cash provided by operating activities as previously reported. The accompanying unaudited consolidated financial statements include the accounts of Inovalon 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , and in July 2018 and in March 2019 issued subsequent clarifying guidance (collectively, “ASU 2016-02”). ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet and enhanced disclosure about leasing arrangements. The Company adopted the new standard on January 1, 2019 using the additional transition approach, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Accounting Standards Codification (“ASC”) 840. Refer to “Note 5 —Leases.” 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: Improvements to Nonemployee Share-Based Payment Accounting, 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. The Company adopted the new standard on January 1, 2019. There was no material impact of adoption on its consolidated financial statements and notes disclosures. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes in response to the potential transition away from the London Interbank Offer Rate (“LIBOR”). This update permits the use of the Overnight Index Swap Rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under ASC Topic 815. The Company will apply the requirements of the new standard on a prospective basis beginning January 1, 2019 for any new or redesignated hedging agreements. Refer to “Note 7—Fair Value Measurements.” 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 2018 Form 10-K, that would be expected to impact the Company.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE 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 2019 2018 Platform solutions (1) $ 129,952 $ 78,966 Services (2) 15,539 13,789 Total revenue $ 145,491 $ 92,755 ______________________________________ (1) 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. (2) Services include advisory, implementation, and support services under time and materials, fixed price, or retainer-based contracts. Contract Balances The Company had an unbilled receivables balance of $33.6 million and $20.5 million as of March 31, 2019 and December 31, 2018 , respectively. Unbilled receivables are classified as accounts receivable on the consolidated balance sheet. The Company had deferred commissions of $7.5 million and $5.7 million as of March 31, 2019 and December 31, 2018 , respectively. The Company had a deferred revenue balance of $28.8 million and $20.6 million as of March 31, 2019 and December 31, 2018 , respectively. Revenue recognized during the three months ended March 31, 2019 that was included in the deferred revenue balance at the beginning of the year was $6.7 million .

NET (LOSS) INCOME PER SHARE

NET (LOSS) INCOME PER SHARE	3 Months Ended
	Mar. 31, 2019
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 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 2019 2018 Basic Numerator: Net loss $ (8,323 ) $ (16,834 ) Undistributed earnings allocated to participating securities — 562 Net loss attributable to common stockholders—basic $ (8,323 ) $ (16,272 ) Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 147,774 139,378 Net loss per share attributable to common stockholders—basic $ (0.06 ) $ (0.12 ) Diluted Numerator: Net loss attributable to common stockholders—diluted $ (8,323 ) $ (16,272 ) Denominator: Number of shares used for basic EPS computation 147,774 139,378 Effect of dilutive securities — — Weighted average shares used in computing net loss per share attributable to common stockholders—diluted 147,774 139,378 Net loss per share attributable to common stockholders—diluted $ (0.06 ) $ (0.12 ) 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 2019 2018 Awards excluded from the computation of diluted net loss per share because their inclusion would have been anti-dilutive 10 118

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
SHORT-TERM INVESTMENTS	SHORT-TERM INVESTMENTS As of March 31, 2019 , 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 $ 1,813 $ — $ (3 ) $ 1,810 Total available-for-sale securities $ 1,813 $ — $ (3 ) $ 1,810 As of December 31, 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 $ 7,018 $ — $ (18 ) $ 7,000 Total available-for-sale securities $ 7,018 $ — $ (18 ) $ 7,000 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): March 31, December 31, Due in one year or less $ 1,810 $ 7,000 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, 2019 . 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, 2019 , aggregated by investment category (in thousands): Estimated Fair Value Gross Unrealized Losses Corporate notes and bonds $ 1,810 $ (3 )

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES	LEASES The Company adopted ASU 2016-02 as of January 1, 2019. Leases held on or after January 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840. The Company recorded a right-of-use asset of $34.8 million and a lease liability of $40.5 million . Additionally, the Company recorded a reclassification of $2.1 million from current liabilities and $3.6 million from non-current liabilities, related to deferred rent, cease-use lease liabilities, and tenant improvement liabilities related to the implementation of ASC 842. The Company elected the following practical expedients under ASC 842-10-65-1 including (1) the package of transition provisions related to expired and existing leases that allows an entity to use the historical assessment of whether contracts are or contain leases, lease classification, and initial direct costs, and (2) the practical expedient that allows for the use of hindsight in determining the lease term. The Company determines whether a contract is or contains a lease at inception. At the lease commencement date, the Company records a liability for the lease obligation and a corresponding asset representing the right to use the underlying asset over the lease term. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet and are recognized in expense using a straight-line basis for all asset classes. Variable lease payments are expensed as incurred, which primarily include maintenance costs, services provided by the lessor, and other charges reimbursed to the lessor. The Company leases office space, data center facilities, printers, and equipment with remaining lease terms ranging from one year to 10.5 years , some of which contain renewal or purchase options. The exercise of these options is at the Company’s sole discretion. The Company has entered into sublease agreements for unoccupied leased office space and records sublease income netted against rent expense. Additionally, the Company is required to maintain a standby letter of credit in the amount of $1.0 million to satisfy the requirements of a certain lease agreement. Certain of the Company’s leases contain lease and non-lease components. For leases held on or after January 1, 2019, the Company has elected the practical expedient under ASC 842-10-15-37 for all asset classes which allows companies to account for lease and non-lease components as a single lease component. The Company’s leases do not contain an implicit rate of return, therefore an incremental borrowing rate was determined. The Company assessed which rate would be most reflective of a reasonable rate the Company would be able to borrow based on asset class and lease term. The Company has an office lease agreement which has not yet commenced as of March 31, 2019 . The Company expects the lease to commence during fiscal year 2019 with a lease term of 92 months with expected future non-cancellable minimum lease payments of $5.1 million . Finance lease right-of-use assets of $15.8 million are included in property, equipment, and capitalized software, net on the consolidated balance sheet. The following table presents components of lease expense for the three months ended March 31, 2019 (in thousands): Finance lease cost Amortization of right-of-use assets $ 550 Interest on lease liabilities 134 Operating lease cost 2,111 Variable lease cost 494 Sublease income (317 ) Total lease cost $ 2,972 Future non-cancellable minimum lease payments as of March 31, 2019 are as follows (in thousands): Operating Leases Finance Leases 2019 $ 9,190 $ 2,078 2020 3,960 2,931 2021 7,311 2,375 2022 5,351 1,181 2023 3,825 1,275 Thereafter 15,599 8,816 Total future minimum lease payments 45,236 18,656 Less: Interest (7,897 ) (2,155 ) Total $ 37,339 $ 16,501 Future non-cancellable lease payments as of December 31, 2018 are as follows (in thousands): Operating Leases Finance Leases Year ending December 31, 2019 $ 11,250 $ 3,509 2020 7,059 2,567 2021 5,898 2,017 2022 5,303 1,181 2023 3,821 1,275 Thereafter 15,599 8,831 Total future minimum lease payments 48,930 19,380 Less: Interest — (2,548 ) Total $ 48,930 $ 16,832 Other information related to leases for the three months ended March 31, 2019 are as follows (in thousands, except lease term and discount rate): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,573 Operating cash flows from financing leases 134 Financing cash flows from financing leases 672 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 2,990 Weighted average remaining lease term: Operating leases 6 years Financing leases 8 years Weighted average discount rate: Operating leases 4.5 % Financing leases 3.1 %

DEBT

DEBT	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
DEBT	DEBT 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 as well as to provide the financing necessary to fund, in part, the cash consideration paid to acquire ABILITY (as defined in Note 10—Business Combinations ) . As of March 31, 2019 , the Company had $100.0 million available under the 2018 Credit Facilities consisting of $99.0 million on the 2018 Revolving Facility and a letter of credit of $1.0 million . At the option of the Company, the loans outstanding under the 2018 Term Facility will bear interest either at: (i) Adjusted LIBOR plus an applicable rate of 3.50% 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): March 31, December 31, 2018 Term Facility (1) $ 947,843 $ 949,314 Less: current portion 9,800 9,800 Non-current Credit Facilities $ 938,043 $ 939,514 ______________________________________ (1) The 2018 Term Facility is presented net of unamortized deferred financing fees and original issue discount (“OID”) of $27.3 million and $28.2 million as of March 31, 2019 and December 31, 2018 , respectively. 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, 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 months ended March 31, 2019 , the Company recognized $0.5 million in OID amortization expense related to the 2018 Term Facility. The Company recognized $0.5 million in deferred financing fees related to the 2018 Term Facility during the three months ended March 31, 2019 . The Company recognized $0.1 million in amortization expense related to the 2018 Revolving Facility during the three months ended March 31, 2019 . 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 March 31, 2019 , the Company is in compliance with the covenants under the 2018 Credit Agreement.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 39,494 $ — $ — $ 39,494 Short-term investments: Corporate notes and bonds — 1,810 — 1,810 Other current liabilities: Interest rate swaps — (2,821 ) — (2,821 ) Contingent consideration — — (15,149 ) (15,149 ) Other liabilities Interest rate swaps — (18,987 ) — (18,987 ) Contingent consideration — — (17,054 ) (17,054 ) Total $ 39,494 $ (19,998 ) $ (32,203 ) $ (12,707 ) 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, 2018 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 34,064 $ — $ — $ 34,064 Short-term investments: Corporate notes and bonds — 7,000 — 7,000 Other current liabilities: Interest rate swaps — (1,778 ) — (1,778 ) Contingent consideration — — (15,182 ) (15,182 ) Other liabilities: Interest rate swaps — (8,151 ) — (8,151 ) Contingent consideration — — (16,642 ) (16,642 ) Total $ 34,064 $ (2,929 ) $ (31,824 ) $ (689 ) 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) March 31, December 31, Balance, beginning of period $ (31,824 ) $ (7,400 ) Fair value adjustment (1)(2) (196 ) (6,159 ) Accretion expense (recognized in general and administrative expenses) (183 ) (1,053 ) Contingent consideration attributable to and assumed from ABILITY Acquisition — (17,212 ) Total $ (32,203 ) $ (31,824 ) ______________________________________ (1) During 2019, the Company recognized an adjustment of $0.3 million recognized in goodwill, which was a purchase accounting adjustment attributable to the ABILITY Acquisition, partially offset by an adjustment of $0.1 million recognized in general and administrative expenses related to the change in fair value of contingent consideration. (2) During 2018, the Company recognized an adjustment of $5.6 million in general and administrative expenses related to the change in fair value of contingent consideration, and an adjustment of $0.6 million recognized in goodwill, which was a purchase accounting adjustment attributable to the ABILITY Acquisition. 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 March 31, 2019 (in thousands): March 31, Carrying value $ 947,843 Fair value $ 944,289 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 6 —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 March 31, 2019 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (2,821 ) Interest rate swap contract Other liabilities $ (18,987 ) The following table presents the fair value of interest rate swaps on the balance sheet as of December 31, 2018 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (1,778 ) Interest rate swap contract Other liabilities $ (8,151 ) 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 months ended March 31, 2019 (in thousands): Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (12,408 ) Interest expense $ 529 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	3 Months Ended
	Mar. 31, 2019
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 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 consolidated financial statements and note disclosures, subsequent to the disclosure previously provided in Note 11 of the Notes to the Consolidated Financial Statements in the 2018 Form 10-K.

RESTRUCTURING EXPENSE

RESTRUCTURING EXPENSE	3 Months Ended
	Mar. 31, 2019
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 10 —Business Combinations”). During 2018, the Company incurred $9.5 million in restructuring expense related to a streamlining of software development initiatives, severance expense, lease termination costs and accelerated depreciation related to associated leasehold improvements. The following table presents restructuring liability activity for the three months ended March 31, 2019 (in thousands): Balance as of December 31, 2018 $ 589 Severance payments (14 ) Lease termination accretion (575 ) Balance as of March 31, 2019 $ —

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 31, 2019
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”) in cash and restricted shares of the Company’s Class A Common Stock. 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 final 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 ) Shareholder payable adjustment 880 Subtotal 1,221,050 Fair value adjustments: Restricted stock marketability discount (30,000 ) Total fair value purchase price $ 1,191,050 The final 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 14,460 Working capital adjustment (630 ) Total fair value purchase price $ 1,191,050 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 Company finalized the Purchase Price allocation as of March 31, 2019. The following table summarizes the net assets acquired and liabilities assumed (in thousands): Fair Value Cash and cash equivalents $ 23,850 Accounts receivable 16,739 Income tax receivable (2) 688 Prepaid expenses and other current assets 3,025 Property and equipment 3,095 Goodwill (1)(2) 770,949 Intangible assets (1) 490,000 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 (2) (98,887 ) Total consideration transferred $ 1,191,050 ______________________________________ (1) The Company allocated a portion of the goodwill associated with the ABILITY Acquisition to the Inovalon reporting unit based on expected revenue synergies. As a result, the fair value of the customer relationships intangible asset was adjusted by $23.0 million during the third quarter of 2018. (2) The Company recognized a net purchase accounting adjustment of $1.8 million resulting in a decrease to goodwill. This adjustment was driven by a $7.5 million decrease to deferred tax liabilities primarily attributable to the tax impact related to the reduction to the fair value of the customer relationships intangible assets and an adjustment to income tax receivable of $0.2 million . These reductions to goodwill were partially offset by a $5.0 million increase in deferred tax liabilities related to tax basis goodwill and provision-to-tax adjustments from ABILITY’s 2017 tax return filings and an adjustment of $0.9 million to the shareholder payable attributable to the ABILITY Acquisition. The amounts attributed to identified intangible assets are summarized in the table below (in thousands): Estimated Fair Value Measurement Period Adjustments Adjusted Fair Value Customer relationships 12-14 years $ 408,000 $ (23,000 ) $ 385,000 Technology 12-14 years 86,000 — 86,000 Trade names 16-18 years 19,000 — 19,000 Total intangible assets $ 513,000 $ (23,000 ) $ 490,000 Acquisition-related costs were expensed as incurred. During 2018, the Company incurred acquisition-related costs of $6.5 million . Acquisition-related costs were recognized within “General and administrative” expenses in the accompanying consolidated statements of operations. The following table presents revenue and loss before taxes of ABILITY, included in the consolidated statements of operations (in thousands): Three Months Ended Revenue $ 39,829 Loss before taxes $ (48 ) 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 consolidated pro forma financial information is unaudited and gives effect to the transactions as if they had occurred on January 1, 2018 (in thousands): Three Months Ended Revenue $ 130,119 Loss before taxes $ (26,655 ) The unaudited pro forma revenue and 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.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited 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 consolidated financial statements may not include all of the information and notes required by GAAP for audited financial statements. The year-end December 31, 2018 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 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, 2019 , the results of operations, comprehensive loss, stockholders’ equity, and cash flows for the three month periods ended March 31, 2019 and 2018 . The results of operations for the three month periods ended March 31, 2019 and 2018 are not necessarily indicative of the results to be expected for the full year. The preparation of 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, 2018 (the “ 2018 Form 10-K”). Certain prior period amounts have been reclassified within the consolidated statements of operations, within the current and non-current liabilities section of the consolidated balance sheets, and within the operating section of the consolidated statements of cash flows to conform with current period presentation. Such reclassifications had no impact on net loss, current and non-current liabilities, or net cash provided by operating activities as previously reported. The accompanying unaudited consolidated financial statements include the accounts of Inovalon 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , and in July 2018 and in March 2019 issued subsequent clarifying guidance (collectively, “ASU 2016-02”). ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet and enhanced disclosure about leasing arrangements. The Company adopted the new standard on January 1, 2019 using the additional transition approach, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Accounting Standards Codification (“ASC”) 840. Refer to “Note 5 —Leases.” 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: Improvements to Nonemployee Share-Based Payment Accounting, 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. The Company adopted the new standard on January 1, 2019. There was no material impact of adoption on its consolidated financial statements and notes disclosures. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes in response to the potential transition away from the London Interbank Offer Rate (“LIBOR”). This update permits the use of the Overnight Index Swap Rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under ASC Topic 815. The Company will apply the requirements of the new standard on a prospective basis beginning January 1, 2019 for any new or redesignated hedging agreements. Refer to “Note 7—Fair Value Measurements.” 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 2018 Form 10-K, that would be expected to impact the Company

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by offering (in thousands): Three Months Ended 2019 2018 Platform solutions (1) $ 129,952 $ 78,966 Services (2) 15,539 13,789 Total revenue $ 145,491 $ 92,755 ______________________________________ (1) 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. (2) 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)	3 Months Ended
	Mar. 31, 2019
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 2019 2018 Basic Numerator: Net loss $ (8,323 ) $ (16,834 ) Undistributed earnings allocated to participating securities — 562 Net loss attributable to common stockholders—basic $ (8,323 ) $ (16,272 ) Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 147,774 139,378 Net loss per share attributable to common stockholders—basic $ (0.06 ) $ (0.12 ) Diluted Numerator: Net loss attributable to common stockholders—diluted $ (8,323 ) $ (16,272 ) Denominator: Number of shares used for basic EPS computation 147,774 139,378 Effect of dilutive securities — — Weighted average shares used in computing net loss per share attributable to common stockholders—diluted 147,774 139,378 Net loss per share attributable to common stockholders—diluted $ (0.06 ) $ (0.12 )
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 2019 2018 Awards excluded from the computation of diluted net loss per share because their inclusion would have been anti-dilutive 10 118

SHORT-TERM INVESTMENTS (Tables)

SHORT-TERM INVESTMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of short-term investments	As of March 31, 2019 , 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 $ 1,813 $ — $ (3 ) $ 1,810 Total available-for-sale securities $ 1,813 $ — $ (3 ) $ 1,810 As of December 31, 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 $ 7,018 $ — $ (18 ) $ 7,000 Total available-for-sale securities $ 7,018 $ — $ (18 ) $ 7,000
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): March 31, December 31, Due in one year or less $ 1,810 $ 7,000
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, 2019 , aggregated by investment category (in thousands): Estimated Fair Value Gross Unrealized Losses Corporate notes and bonds $ 1,810 $ (3 )

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lease, Cost	The following table presents components of lease expense for the three months ended March 31, 2019 (in thousands): Finance lease cost Amortization of right-of-use assets $ 550 Interest on lease liabilities 134 Operating lease cost 2,111 Variable lease cost 494 Sublease income (317 ) Total lease cost $ 2,972 Other information related to leases for the three months ended March 31, 2019 are as follows (in thousands, except lease term and discount rate): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,573 Operating cash flows from financing leases 134 Financing cash flows from financing leases 672 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 2,990 Weighted average remaining lease term: Operating leases 6 years Financing leases 8 years Weighted average discount rate: Operating leases 4.5 % Financing leases 3.1 %
Finance Lease, Liability, Maturity	Future non-cancellable minimum lease payments as of March 31, 2019 are as follows (in thousands): Operating Leases Finance Leases 2019 $ 9,190 $ 2,078 2020 3,960 2,931 2021 7,311 2,375 2022 5,351 1,181 2023 3,825 1,275 Thereafter 15,599 8,816 Total future minimum lease payments 45,236 18,656 Less: Interest (7,897 ) (2,155 ) Total $ 37,339 $ 16,501
Lessee, Operating Lease, Liability, Maturity	Future non-cancellable minimum lease payments as of March 31, 2019 are as follows (in thousands): Operating Leases Finance Leases 2019 $ 9,190 $ 2,078 2020 3,960 2,931 2021 7,311 2,375 2022 5,351 1,181 2023 3,825 1,275 Thereafter 15,599 8,816 Total future minimum lease payments 45,236 18,656 Less: Interest (7,897 ) (2,155 ) Total $ 37,339 $ 16,501
Schedule of Future Minimum Lease Payments for Capital Leases	Future non-cancellable lease payments as of December 31, 2018 are as follows (in thousands): Operating Leases Finance Leases Year ending December 31, 2019 $ 11,250 $ 3,509 2020 7,059 2,567 2021 5,898 2,017 2022 5,303 1,181 2023 3,821 1,275 Thereafter 15,599 8,831 Total future minimum lease payments 48,930 19,380 Less: Interest — (2,548 ) Total $ 48,930 $ 16,832
Schedule of Future Minimum Rental Payments for Operating Leases	Future non-cancellable lease payments as of December 31, 2018 are as follows (in thousands): Operating Leases Finance Leases Year ending December 31, 2019 $ 11,250 $ 3,509 2020 7,059 2,567 2021 5,898 2,017 2022 5,303 1,181 2023 3,821 1,275 Thereafter 15,599 8,831 Total future minimum lease payments 48,930 19,380 Less: Interest — (2,548 ) Total $ 48,930 $ 16,832

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of Line of Credit Facilities	The following table discloses the outstanding debt at each balance date as follows (in thousands): March 31, December 31, 2018 Term Facility (1) $ 947,843 $ 949,314 Less: current portion 9,800 9,800 Non-current Credit Facilities $ 938,043 $ 939,514 ______________________________________ (1) The 2018 Term Facility is presented net of unamortized deferred financing fees and original issue discount (“OID”) of $27.3 million and $28.2 million as of March 31, 2019 and December 31, 2018 , respectively.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
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 March 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 39,494 $ — $ — $ 39,494 Short-term investments: Corporate notes and bonds — 1,810 — 1,810 Other current liabilities: Interest rate swaps — (2,821 ) — (2,821 ) Contingent consideration — — (15,149 ) (15,149 ) Other liabilities Interest rate swaps — (18,987 ) — (18,987 ) Contingent consideration — — (17,054 ) (17,054 ) Total $ 39,494 $ (19,998 ) $ (32,203 ) $ (12,707 ) 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, 2018 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 34,064 $ — $ — $ 34,064 Short-term investments: Corporate notes and bonds — 7,000 — 7,000 Other current liabilities: Interest rate swaps — (1,778 ) — (1,778 ) Contingent consideration — — (15,182 ) (15,182 ) Other liabilities: Interest rate swaps — (8,151 ) — (8,151 ) Contingent consideration — — (16,642 ) (16,642 ) Total $ 34,064 $ (2,929 ) $ (31,824 ) $ (689 )
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) March 31, December 31, Balance, beginning of period $ (31,824 ) $ (7,400 ) Fair value adjustment (1)(2) (196 ) (6,159 ) Accretion expense (recognized in general and administrative expenses) (183 ) (1,053 ) Contingent consideration attributable to and assumed from ABILITY Acquisition — (17,212 ) Total $ (32,203 ) $ (31,824 ) ______________________________________ (1) During 2019, the Company recognized an adjustment of $0.3 million recognized in goodwill, which was a purchase accounting adjustment attributable to the ABILITY Acquisition, partially offset by an adjustment of $0.1 million recognized in general and administrative expenses related to the change in fair value of contingent consideration. (2) During 2018, the Company recognized an adjustment of $5.6 million in general and administrative expenses related to the change in fair value of contingent consideration, and an adjustment of $0.6 million recognized in goodwill, which was a purchase accounting adjustment attributable to the ABILITY Acquisition.
Fair Value, by Balance Sheet Grouping	March 31, 2019 (in thousands): March 31, Carrying value $ 947,843 Fair value $ 944,289
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 March 31, 2019 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (2,821 ) Interest rate swap contract Other liabilities $ (18,987 ) The following table presents the fair value of interest rate swaps on the balance sheet as of December 31, 2018 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (1,778 ) Interest rate swap contract Other liabilities $ (8,151 )
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 months ended March 31, 2019 (in thousands): Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (12,408 ) Interest expense $ 529

RESTRUCTURING EXPENSE (Tables)

RESTRUCTURING EXPENSE (Tables)	3 Months Ended
	Mar. 31, 2019
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 10 —Business Combinations”). During 2018, the Company incurred $9.5 million in restructuring expense related to a streamlining of software development initiatives, severance expense, lease termination costs and accelerated depreciation related to associated leasehold improvements. The following table presents restructuring liability activity for the three months ended March 31, 2019 (in thousands): Balance as of December 31, 2018 $ 589 Severance payments (14 ) Lease termination accretion (575 ) Balance as of March 31, 2019 $ —
Restructuring and Related Costs	The following table presents restructuring liability activity for the three months ended March 31, 2019 (in thousands): Balance as of December 31, 2018 $ 589 Severance payments (14 ) Lease termination accretion (575 ) Balance as of March 31, 2019 $ —

BUSINESS COMBINATIONS BUSINESS

BUSINESS COMBINATIONS BUSINESS COMBINATIONS (Tables)	3 Months Ended
	Mar. 31, 2019
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	A summary of the final 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 ) Shareholder payable adjustment 880 Subtotal 1,221,050 Fair value adjustments: Restricted stock marketability discount (30,000 ) Total fair value purchase price $ 1,191,050 The final 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 14,460 Working capital adjustment (630 ) Total fair value purchase price $ 1,191,050
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the net assets acquired and liabilities assumed (in thousands): Fair Value Cash and cash equivalents $ 23,850 Accounts receivable 16,739 Income tax receivable (2) 688 Prepaid expenses and other current assets 3,025 Property and equipment 3,095 Goodwill (1)(2) 770,949 Intangible assets (1) 490,000 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 (2) (98,887 ) Total consideration transferred $ 1,191,050 ______________________________________ (1) The Company allocated a portion of the goodwill associated with the ABILITY Acquisition to the Inovalon reporting unit based on expected revenue synergies. As a result, the fair value of the customer relationships intangible asset was adjusted by $23.0 million during the third quarter of 2018. (2) The Company recognized a net purchase accounting adjustment of $1.8 million resulting in a decrease to goodwill. This adjustment was driven by a $7.5 million decrease to deferred tax liabilities primarily attributable to the tax impact related to the reduction to the fair value of the customer relationships intangible assets and an adjustment to income tax receivable of $0.2 million . These reductions to goodwill were partially offset by a $5.0 million increase in deferred tax liabilities related to tax basis goodwill and provision-to-tax adjustments from ABILITY’s 2017 tax return filings and an adjustment of $0.9 million to the shareholder payable attributable to the ABILITY Acquisition.
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 Fair Value Measurement Period Adjustments Adjusted Fair Value Customer relationships 12-14 years $ 408,000 $ (23,000 ) $ 385,000 Technology 12-14 years 86,000 — 86,000 Trade names 16-18 years 19,000 — 19,000 Total intangible assets $ 513,000 $ (23,000 ) $ 490,000
Business Acquisition, Pro Forma Information	The following consolidated pro forma financial information is unaudited and gives effect to the transactions as if they had occurred on January 1, 2018 (in thousands): Three Months Ended Revenue $ 130,119 Loss before taxes $ (26,655 ) The following table presents revenue and loss before taxes of ABILITY, included in the consolidated statements of operations (in thousands): Three Months Ended Revenue $ 39,829 Loss before taxes $ (48 )

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification of income tax effects of the Tax Cuts and Jobs Act of 2017	$ 0	$ 102

REVENUE - Additional Informatio

REVENUE - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Unbilled receivables	$ 33,600,000	$ 20,500,000
Deferred sales commission	7,500,000	5,700,000
Deferred revenue	28,800,000	$ 20,600,000
Deferred revenue, revenue recognized	$ 6,700,000

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 145,491	$ 92,755
Platform Solutions
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	129,952	78,966
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 15,539	$ 13,789

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
	Mar. 31, 2019	Mar. 31, 2018
Basic
Net loss	$ (8,323)	$ (16,834)
Undistributed earnings allocated to participating securities	0	562
Net loss attributable to common stockholders—basic	$ (8,323)	$ (16,272)
Weighted average shares used in computing net income per share attributable to common stockholders - basic (in shares)	147,774	139,378
Net (loss) income per share attributable to common stockholders - basic (in dollars per share)	$ (0.06)	$ (0.12)
Diluted
Net loss attributable to common stockholders—diluted	$ (8,323)	$ (16,272)
Effect of dilutive securities (in shares)	0	0
Weighted average shares used in computing net income per share attributable to common stockholders - diluted (in shares)	147,774	139,378
Net (loss) income per share attributable to common stockholders - diluted (in dollars per share)	$ (0.06)	$ (0.12)

NET (LOSS) INCOME PER SHARE - A

NET (LOSS) INCOME PER SHARE - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
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)	10	118

SHORT-TERM INVESTMENTS - Availa

SHORT-TERM INVESTMENTS - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,813	$ 7,018
Gross Unrealized Gains	0	0
Gross Unrealized Losses	3	18
Estimated Fair Value	1,810	7,000
Corporate notes and bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	1,813	7,018
Gross Unrealized Gains	0	0
Gross Unrealized Losses	3	18
Estimated Fair Value	$ 1,810	$ 7,000

SHORT-TERM INVESTMENTS - Estima

SHORT-TERM INVESTMENTS - Estimated Fair Value by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Due in one year or less	$ 1,810	$ 7,000

SHORT-TERM INVESTMENTS - Other-

SHORT-TERM INVESTMENTS - Other-than-temporary Impairments (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
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	Mar. 31, 2019USD ($)
Debt Securities, Available-for-sale [Line Items]
Estimated Fair Value	$ 1,810
Gross Unrealized Losses	$ 3

LEASES - Additional Information

LEASES - Additional Information (Details) - USD ($)	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Apr. 02, 2018
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	$ 32,331,000		$ 0
Total	37,339,000
Liabilities, current	(141,000,000)		$ (141,310,000)
Finance lease, right-of-use asset	$ 15,800,000
Building
Lessee, Lease, Description [Line Items]
Lessee, operating lease, lease not yet commenced, term of contract	92 months
Lessee, operating lease, lease not yet commenced, liability, payments, due	$ 5,100,000
Secured Debt | Morgan Stanley Senior Funding, Inc.
Lessee, Lease, Description [Line Items]
Face amount	100,000,000			$ 980,000,000
Secured Debt | Line of Credit | Morgan Stanley Senior Funding, Inc.
Lessee, Lease, Description [Line Items]
Face amount	$ 1,000,000
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract	10 years 6 months
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset		$ 34,800,000
Total		40,500,000
Liabilities, current		2,100,000
Liabilities, noncurrent		$ 3,600,000

LEASES - Components of Lease Ex

LEASES - Components of Lease Expense (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Amortization of right-of-use assets	$ 550
Interest on lease liabilities	134
Operating lease cost	2,111
Variable lease cost	494
Sublease income	(317)
Total lease cost	$ 2,972

LEASES - Future Non-cancellable

LEASES - Future Non-cancellable Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2019USD ($)
Operating Leases
2019	$ 9,190
2020	3,960
2021	7,311
2022	5,351
2023	3,825
Thereafter	15,599
Total future minimum lease payments	45,236
Less: Interest	(7,897)
Total	37,339
Finance Lease Liabilities, Payments, Due [Abstract]
2019	2,078
2020	2,931
2021	2,375
2022	1,181
2023	1,275
Thereafter	8,816
Total future minimum lease payments	18,656
Less: Interest	(2,155)
Total	$ 16,501

LEASES - Future non-cancellab_2

LEASES - Future non-cancellable Lease Payments Under 840 (Details) $ in Thousands	Dec. 31, 2018USD ($)
Operating Leases
2019	$ 11,250
2020	7,059
2021	5,898
2022	5,303
2023	3,821
Thereafter	15,599
Total future minimum lease payments	48,930
Finance Lease Liabilities, Payments, Due [Abstract]
2019	3,509
2020	2,567
2021	2,017
2022	1,181
2023	1,275
Thereafter	8,831
Total future minimum lease payments	19,380
Less: Interest	(2,548)
Total	$ 16,832

LEASES - Other Information Rela

LEASES - Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Leases [Abstract]
Operating cash flows from operating leases	$ 3,573
Operating cash flows from financing leases	134
Financing cash flows from financing leases	672	$ 31
Right-of-use assets obtained in exchange for lease liabilities	$ 2,990
Weighted average remaining lease term, operating lease	6 years
Weighted average remaining lease term, financing lease	8 years
Weighted average discount rate, operating leases	4.50%
Weighted average discount rate, financing leases	3.10%

DEBT - Additional Information (

DEBT - Additional Information (Details) - USD ($)	Apr. 02, 2018	Mar. 31, 2019
Debt Instrument [Line Items]
Proceeds from issuance of debt	$ 980,000,000
Line of Credit | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate		3.50%
Line of Credit | Adjusted LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Morgan Stanley Senior Funding, Inc. | Revolving Credit Facility
Debt Instrument [Line Items]
Debt issuance costs, net	1,900,000
Amortization of Debt Issuance Costs		$ 100,000
Morgan Stanley Senior Funding, Inc. | Secured Debt
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	14,700,000
Debt issuance costs, net	16,400,000
Amortization of Debt Discount (Premium)		500,000
Amortization of Debt Issuance Costs		500,000
Morgan Stanley Senior Funding, Inc. | Secured Debt
Debt Instrument [Line Items]
Face amount	$ 980,000,000	100,000,000
Morgan Stanley Senior Funding, Inc. | Secured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Face amount		99,000,000
Morgan Stanley Senior Funding, Inc. | Secured Debt | Line of Credit
Debt Instrument [Line Items]
Face amount		$ 1,000,000

DEBT - Schedule of Debt (Detail

DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Line of Credit Facility [Line Items]
Credit facilities	$ 9,800	$ 9,800
Credit facilities, less current portion	938,043	939,514
Morgan Stanley Senior Funding, Inc. | Secured Debt
Line of Credit Facility [Line Items]
2018 Term Facility	947,843	949,314
Credit facilities	9,800	9,800
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums	$ 27,300	$ 28,200

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Short-term investments:
Short-term investments	$ 1,810	$ 7,000
Recurring
Liabilities / Other Current Liabilities:
Total	(12,707)	(689)
Recurring | Corporate notes and bonds
Short-term investments:
Short-term investments	1,810	7,000
Recurring | Money market funds
Cash equivalents:
Cash equivalents	39,494	34,064
Recurring | Level 1
Liabilities / Other Current Liabilities:
Total	39,494	34,064
Recurring | Level 1 | Corporate notes and bonds
Short-term investments:
Short-term investments	0	0
Recurring | Level 1 | Money market funds
Cash equivalents:
Cash equivalents	39,494	34,064
Recurring | Level 2
Liabilities / Other Current Liabilities:
Total	(19,998)	(2,929)
Recurring | Level 2 | Corporate notes and bonds
Short-term investments:
Short-term investments	1,810	7,000
Recurring | Level 2 | Money market funds
Cash equivalents:
Cash equivalents	0	0
Recurring | Level 3
Liabilities / Other Current Liabilities:
Total	(32,203)	(31,824)
Recurring | Level 3 | Corporate notes and bonds
Short-term investments:
Short-term investments	0	0
Recurring | Level 3 | Money market funds
Cash equivalents:
Cash equivalents	0	0
Other Current Liabilities [Member] | Recurring | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(15,149)	(15,182)
Other Current Liabilities [Member] | Recurring | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	(2,821)	(1,778)
Other Current Liabilities [Member] | Recurring | Level 1 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Current Liabilities [Member] | Recurring | Level 1 | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	0	0
Other Current Liabilities [Member] | Recurring | Level 2 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Current Liabilities [Member] | Recurring | Level 2 | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	(2,821)	(1,778)
Other Current Liabilities [Member] | Recurring | Level 3 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(15,149)	(15,182)
Other Current Liabilities [Member] | Recurring | Level 3 | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	0	0
Other Liabilities [Member] | Recurring | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(17,054)	(16,642)
Other Liabilities [Member] | Recurring | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	(18,987)	(8,151)
Other Liabilities [Member] | Recurring | Level 1 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Liabilities [Member] | Recurring | Level 1 | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	0	0
Other Liabilities [Member] | Recurring | Level 2 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Liabilities [Member] | Recurring | Level 2 | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	(18,987)	(8,151)
Other Liabilities [Member] | Recurring | Level 3 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(17,054)	(16,642)
Other Liabilities [Member] | Recurring | Level 3 | Interest Rate Swap
Liabilities / Other Current Liabilities:
Interest rate swaps	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value Measurements Using Unobservable Inputs (Level 3)
Contingent consideration liability	$ (379)	$ (200)
Level 3
Fair Value Measurements Using Unobservable Inputs (Level 3)
Balance, beginning of period	(31,824)	(7,400)
Fair value adjustment(1)(2)	(196)	(6,159)
Accretion Expense	(183)	(1,053)
Total	(32,203)
Contingent Consideration Attributable to Acquisition | Level 3
Fair Value Measurements Using Unobservable Inputs (Level 3)
Contingent consideration liability	0	17,212
General and administrative | Level 3
Fair Value Measurements Using Unobservable Inputs (Level 3)
Fair value adjustment(1)(2)	100	5,600
Goodwill [Member] | Level 3
Fair Value Measurements Using Unobservable Inputs (Level 3)
Fair value adjustment(1)(2)	$ 300	$ 600

FAIR VALUE MEASUREMENTS - Debt

FAIR VALUE MEASUREMENTS - Debt (Details) $ in Thousands	Mar. 31, 2019USD ($)
Additional Fair Value Elements [Abstract]
Carrying value	$ 947,843
Fair value	$ 944,289

FAIR VALUE MEASUREMENTS - Inter

FAIR VALUE MEASUREMENTS - Interest Rate Swaps Narrative (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
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 - Fai_2

FAIR VALUE MEASUREMENTS - Fair Value of Interest Rate Swaps (Details) - Interest Rate Swap - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Derivative Liability [Abstract]
Gain (Loss) recognized in OCI	$ (12,408)
(Gain) Loss reclassified from OCI	529
Other Current Liabilities [Member]
Derivative Liability [Abstract]
Fair Value	(2,821)	$ (1,778)
Other Liabilities [Member]
Derivative Liability [Abstract]
Fair Value	$ (18,987)	$ (8,151)

RESTRUCTURING EXPENSE (Details)

RESTRUCTURING EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Restructuring and Related Activities [Abstract]
Restructuring expense		$ 9,500
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2018	$ 589
Severance payments	(14)
Lease termination accretion	(575)
Balance as of March 31, 2019	$ 0	$ 589

BUSINESS COMBINATIONS - Additio

BUSINESS COMBINATIONS - Additional Information (Details) - ABILITY Network $ in Thousands	Apr. 02, 2018USD ($)facility	Dec. 31, 2018USD ($)
Business Acquisition [Line Items]
Consideration transferred	$ 1,191,050
Number of provider facilities | facility	44,000
Acquisition related costs		$ 6,500

BUSINESS COMBINATIONS - Stated

BUSINESS COMBINATIONS - Stated Purchase Price and Fair Value of the Purchase Price (Details) - ABILITY Network $ in Thousands	Apr. 02, 2018USD ($)
Business Acquisition [Line Items]
Purchase Price	$ 1,220,800
Working capital adjustment	(630)
Shareholder payable adjustment	880
Subtotal	1,221,050
Restricted stock marketability discount	(30,000)
Total fair value purchase price	$ 1,191,050

BUSINESS COMBINATIONS - Fair Va

BUSINESS COMBINATIONS - Fair Value of Consideration Transferred (Details) - USD ($) $ in Thousands	Apr. 02, 2018	Mar. 31, 2019	Mar. 31, 2018
Business Acquisition [Line Items]
Contingent consideration		$ (379)	$ (200)
ABILITY Network
Business Acquisition [Line Items]
Cash	$ 1,107,220
Issuance of Class A common stock	70,000
Contingent consideration	14,460
Working capital adjustment	(630)
Total fair value purchase price	$ 1,191,050

BUSINESS COMBINATIONS - Purchas

BUSINESS COMBINATIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Mar. 31, 2019	Dec. 31, 2018	Apr. 02, 2018
Business Acquisition [Line Items]
Goodwill		$ 955,881	$ 956,029
Income tax receivable		200
ABILITY Network
Business Acquisition [Line Items]
Cash and cash equivalents				$ 23,850
Accounts receivable				16,739
Income tax receivable				688
Prepaid expenses and other current assets				3,025
Property and equipment				3,095
Goodwill				770,949
Intangible assets				490,000
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				(98,887)
Total consideration transferred				$ 1,191,050
Intangible asset adjustment	$ 23,000	(23,000)
Goodwill		1,800
Deferred tax liability		5,000
Shareholder payable adjustment		900
Customer Relationships | ABILITY Network
Business Acquisition [Line Items]
Deferred tax liability		$ 7,500

BUSINESS COMBINATIONS - Identif

BUSINESS COMBINATIONS - Identified Intangible Assets (Details) - ABILITY Network - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2019	Apr. 02, 2018
Business Acquisition [Line Items]
Intangible asset adjustment		$ 23,000	$ (23,000)
Fair Value	$ 490,000		490,000	$ 513,000
Customer Relationships
Business Acquisition [Line Items]
Intangible asset adjustment			(23,000)
Fair Value	385,000		385,000	408,000
Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible asset adjustment			0
Fair Value	86,000		86,000	86,000
Trade Names
Business Acquisition [Line Items]
Intangible asset adjustment			0
Fair Value	$ 19,000		$ 19,000	$ 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
	Mar. 31, 2019USD ($)
Business Acquisition [Line Items]
Revenue	$ 39,829
Loss before taxes	$ (48)

BUSINESS COMBINATIONS - Proform

BUSINESS COMBINATIONS - Proforma Impact (Details) - ABILITY Network $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Business Acquisition [Line Items]
Revenue	$ 130,119
Loss before taxes	$ (26,655)