Inovalon (INOV) 10-Q 29 Apr 20 2020 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2020	Apr. 17, 2020
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-36841
Entity Registrant Name	Inovalon Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1830316
Entity Address, Address Line One	4321 Collington Road,
Entity Address, City or Town	Bowie,
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20716
City Area Code	301
Local Phone Number	809-4000
Title of 12(b) Security	Class A Common Stock, $0.000005 par value per share
Security Exchange Name	NASDAQ
Trading Symbol	INOV
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001619954
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Class A Common
Entity Common Stock, Shares Outstanding (in shares)		76,119,253
Class B Common
Entity Common Stock, Shares Outstanding (in shares)		79,270,861

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 182,875	$ 93,094
Accounts receivable (net of allowances of $2,451 at March 31, 2020 and $3,351 at December 31, 2019)	129,050	139,514
Prepaid expenses and other current assets	24,606	20,141
Income tax receivable	8,112	4,488
Total current assets	344,643	257,237
Non-current assets:
Property, equipment and capitalized software, net	146,798	147,741
Operating lease right-of-use assets	42,894	45,053
Goodwill	955,881	955,881
Intangible assets, net	480,906	483,041
Other assets	25,750	19,681
Total assets	1,996,872	1,908,634
Current liabilities:
Accounts payable and accrued expenses	31,947	34,845
Accrued compensation	19,872	35,135
Other current liabilities	28,676	26,298
Deferred revenue	17,663	13,664
Credit facilities	9,800	9,800
Operating lease liabilities	8,116	8,085
Finance lease liabilities	2,569	2,533
Total current liabilities	118,643	130,360
Non-current liabilities:
Credit facilities, less current portion	980,639	883,937
Operating lease liabilities, less current portion	49,033	49,690
Finance lease liabilities, less current portion	11,600	12,266
Other liabilities	84,066	46,529
Deferred income taxes	86,150	97,693
Total liabilities	1,330,131	1,220,475
Commitments and contingencies (Note 7)
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, 2020 and December 31, 2019, respectively	0	0
Additional paid-in-capital	640,861	636,461
Retained earnings	276,628	278,246
Treasury stock, at cost, 14,620,175 shares at March 31, 2020 and December 31, 2019, respectively	(199,817)	(199,817)
Other comprehensive loss	(50,932)	(26,732)
Total stockholders’ equity	666,741	688,159
Total liabilities and stockholders’ equity	1,996,872	1,908,634
Class A Common
Stockholders’ equity:
Common stock	1	1
Class B Common
Stockholders’ equity:
Common stock	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounts receivable, allowances	$ 2,451	$ 3,351
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, 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, 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)	90,875,472	76,255,297
Common stock, outstanding (in shares)	90,327,728	75,707,553
Treasury stock (in shares)	14,620,175	14,620,175
Class B Common
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)	79,270,861	79,369,411
Common stock, outstanding (in shares)	79,270,861	79,369,411

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue		$ 154,187	$ 145,491
Expenses:
Cost of revenue	[1]	41,043	37,203
Sales and marketing	[1]	15,159	13,526
Research and development	[1]	7,104	8,201
General and administrative	[1]	53,883	53,623
Depreciation and amortization		27,934	27,047
Total operating expenses		145,123	139,600
Income from operations		9,064	5,891
Other income and (expenses):
Interest income		290	610
Interest expense		(14,560)	(16,542)
Other expense, net		(22)	(11)
Loss before taxes		(5,228)	(10,052)
Benefit from income taxes		(3,545)	(1,729)
Net loss		(1,683)	(8,323)
Net loss attributable to common stockholders, basic and diluted		$ (1,683)	$ (8,323)
Net loss per share attributable to common stockholders, basic and diluted:
Basic net (loss) income per share (in dollars per share)		$ (0.01)	$ (0.06)
Diluted net (loss) income per share (in dollars per share)		$ (0.01)	$ (0.06)
Weighted average shares of common stock outstanding:
Basic (in shares)		149,183	147,774
Diluted (in shares)		149,183	147,774
[1]	(1) Includes stock-based compensation expense as follows: Cost of revenue $ 165 $ 77 Sales and marketing 620 300 Research and development 453 370 General and administrative 6,018 4,492 Total stock-based compensation expense $ 7,256 $ 5,239

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 7,256	$ 5,239
Cost of revenue
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	165	77
Sales and marketing
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	620	300
Research and development
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	453	370
General and administrative
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 6,018	$ 4,492

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,683)	$ (8,323)
Other comprehensive income (loss):
Realized losses on cash flow hedges reclassified from accumulated other comprehensive income, net of tax of $(681) and $(170), respectively	1,446	359
Net change in unrealized losses on cash flow hedges, net of tax of $12,069 and $3,984, respectively	(25,646)	(8,424)
Net change in unrealized gains on available-for-sale investments, net of tax of $0 and $(5), respectively	0	11
Comprehensive loss	$ (25,883)	$ (16,377)

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Realized losses on cash flow hedges reclassified from accumulated other comprehensive income, tax	$ (681)	$ (170)
Net change in unrealized (losses) gains on cash flow hedges, tax	12,069	3,984
Net change in unrealized gains and (losses) on available-for-sale investments, tax	$ 0	$ (5)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common StockClass A Common	Common StockClass B Common	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income
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, net of forfeitures (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)
Beginning balance (in shares) at Dec. 31, 2019		90,327,728	79,369,411	(14,620,175)
Beginning balance at Dec. 31, 2019	688,159	$ 1	$ 0	$ (199,817)	636,461	278,246	(26,732)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	7,164				7,164
Exercise of stock options (in shares)		23,183
Exercise of stock options	183				183
Conversion Class B to Class A common stock (in shares)		98,550	(98,550)
Issuance of shares related to restricted stock units and awards, net of forfeitures (in shares)		574,082
Shares withheld for employee taxes upon conversion of restricted stock (in shares)		(148,071)
Shares withheld for employee taxes upon conversion of restricted stock	(2,947)				(2,947)
Other comprehensive loss	(24,200)						(24,200)
Net loss	(1,683)					(1,683)
Ending balance (in shares) at Mar. 31, 2020		90,875,472	79,270,861	(14,620,175)
Ending balance at Mar. 31, 2020	$ 666,741	$ 1	$ 0	$ (199,817)	$ 640,861	$ 276,628	$ (50,932)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (1,683)	$ (8,323)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation expense	7,256	5,239
Depreciation	14,980	13,931
Amortization of intangibles	12,954	13,116
Amortization of debt issuance costs and debt discount	1,151	1,072
Deferred income taxes	(181)	(2,671)
Change in fair value of contingent consideration	109	379
Other	(295)	1,129
Changes in assets and liabilities:
Accounts receivable	1,614	(13,893)
Prepaid expenses and other current assets	635	(802)
Income taxes receivable	(3,624)	2,830
Other assets	(862)	19
Accounts payable and accrued expenses	(2,844)	182
Accrued compensation	(15,558)	(3,602)
Other current and non-current liabilities	(2,996)	(2,056)
Deferred revenue	3,443	8,205
Net cash provided by operating activities	14,099	14,755
Cash flows from investing activities:
Maturities of short-term investments	0	5,164
Purchases of property and equipment	(5,533)	(3,796)
Investment in capitalized software	(10,940)	(7,626)
Net cash used in investing activities	(16,473)	(6,258)
Cash flows from financing activities:
Proceeds from credit facility borrowings	99,000	0
Repayment of credit facility borrowings	(2,450)	(2,450)
Payments for debt issuance costs	(1,000)	0
Proceeds from exercise of stock options	183	0
Finance lease liabilities paid	(631)	(672)
Tax payments for equity award issuances	(2,947)	(1,086)
Net cash provided by (used in) financing activities	92,155	(4,208)
Increase in cash and cash equivalents	89,781	4,289
Cash and cash equivalents, beginning of period	93,094	115,591
Cash and cash equivalents, end of period	182,875	119,880
Supplemental cash flow disclosure:
Income taxes paid (received), net	357	(1,931)
Interest paid	13,092	15,602
Non-cash transactions:
Accruals for purchases of property and equipment	1,606	1,590
Accruals for investment in capitalized software	1,440	1,776
Accruals for purchase of intangible assets	$ 10,819	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2020
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, 2019 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, 2020 , the results of operations, comprehensive income (loss), and stockholders’ equity, and cash flows for the three -month periods ended March 31, 2020 and 2019 . The results of operations for the three month periods ended March 31, 2020 and 2019 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, 2019 (the “ 2019 Form 10-K”). 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent clarifying guidance (“ASU 2016-13”). ASU 2016-13 replaced the incurred loss impairment method with a methodology that reflects the amortized cost basis net of expected credit losses that are calculated based on certain relevant information. The standard also amended the credit loss guidance for available-for-sale debt securities and requires the measurement and recognition of an expected allowance for credit losses for financial assets held at amortized cost. The Company adopted the requirements of the new standard on January 1, 2020 using the modified-retrospective approach and there was no material impact on the Company’s consolidated financial statements and notes disclosures. In determining the estimate for expected credit losses, each quarter the Company evaluates historical loss rates for its trade receivables and unbilled receivables balance using an aging method and loss rate method and applies management judgment to determine the expected collectability of receivables. The Company considers various factors including historical invoice data, historical payment data, and days sales outstanding and considers other events that could impact future collectability. Additionally, the Company considers current economic conditions that could impact clients. While there may be fluctuations in macro-economic trends and regulatory changes, the Company believes historical trends are representative of collectability. Clients represent payer, pharmaceutical, and life science companies, along with provider networks. Due to the short-term nature of the Company’s standard payment terms and the low risk profile of clients the risk of loss reflects historical experience. In the circumstance where a receivable is deemed uncollectable, the Company will reduce the allowance for expected credit loss by the same amount of the portion of the receivable being written off. As there is no standard definition for when a receivable is deemed uncollectable, the Company will use judgment to determine when all efforts of collection have been exhausted. If the Company subsequently receives consideration for a receivable that was previously written off, the Company would increase earnings by crediting credit loss expense. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Requirements for Fair Value Measurement. This update changes the fair value measurement disclosure requirements of ASC 820. The standard consists of removals, modifications, and additions to the existing disclosure requirements. The Company adopted the requirements of the new standard on January 1, 2020 and there was no material impact on the Company’s notes disclosures. Refer to “Note 6 —Fair Value Measurements.” In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard requires that an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the requirements of the new standard on January 1, 2020 and there was no material impact on the Company’s consolidated financial statements and notes disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update removes certain exceptions and provides additional requirements that simplify the accounting for income taxes. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the standard is permitted. The Company adopted the requirements of the new standard on January 1, 2020 and there was no material impact on the Company’s consolidated financial statements and notes disclosures. 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 2019 Form 10-K, that would be expected to impact the Company except for the following: In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2020
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 2020 2019 Platform solutions (1) $ 140,617 $ 129,952 Services (2) 13,570 15,539 Total revenue $ 154,187 $ 145,491 ______________________________________ (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 $27.4 million and $36.0 million as of March 31, 2020 and December 31, 2019 , respectively. The decrease in the unbilled receivables balance was due to the timing of billings. Unbilled receivables are classified as accounts receivable on the consolidated balance sheet. The Company had deferred commissions of $12.9 million and $11.8 million as of March 31, 2020 and December 31, 2019 , respectively. The Company had a deferred contract asset balance of $13.6 million and $5.8 million as of March 31, 2020 and December 31, 2019 , respectively. Short-term and long-term deferred commissions and deferred contract assets are classified as prepaid expenses and other current assets and other assets on the consolidated balance sheet, respectively. The Company had a deferred revenue balance of $17.7 million and $13.7 million , which is presented net of certain contract assets of $13.0 million and $11.4 million , as of March 31, 2020 and December 31, 2019 , respectively. Revenue recognized during the three months ended March 31, 2020 that was included in the deferred revenue balance at the beginning of the year was $7.5 million .

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NET INCOME (LOSS) 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 income (loss) 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. On February 18, 2015, the date of the completion of the Company’s IPO, the Company’s 2015 Omnibus Incentive Plan (the “2015 Plan”) became effective. The 2015 Plan provided for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s employees and any parent and subsidiary employees, and for the grant of non-qualified stock options, stock appreciation rights, restricted stock, RSAs, RSUs, dividend equivalent rights, cash-based awards (including annual cash incentives and long-term cash incentives), and any combination thereof to the Company’s employees, directors, and consultants and to employees, directors, and consultants of certain affiliated entities. At the Company’s annual meeting of stockholders held on June 5, 2019, the Company’s stockholders, upon the recommendation of the Board of Directors of the Company (the “Board”), approved the Amended and Restated 2015 Omnibus Incentive Plan (the “Amended Plan”), which was previously adopted by the Board on February 14, 2019, subject to the approval by the stockholders. The Amended Plan (i) increases the maximum number of shares of the Company’s Class A common stock available for issuance by 6,000,000 shares to a total of 13,335,430 ; (ii) removes the provisions regarding Section 162(m) of the Code that are no longer relevant due to recent changes to the Code pursuant to the Tax Cuts and Jobs Act of 2017, which eliminated the “performance-based compensation” exception to the deduction limitation under Section 162(m) of the Code; and (iii) extends the term of the Amended Plan until the tenth anniversary of the date of Board approval of the Amended Plan. The Company has issued RSAs under the Amended Plan. The Company considers issued and unvested RSAs to be participating securities as the holders of these RSAs have a non-forfeitable right to dividends in the event of the Company’s declaration of a dividend on shares of Class A and Class B common stock. Subsequent to the issuance of the participating securities, the Company applied the two-class method required in calculating net income (loss) 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 2020 2019 Basic Numerator: Net loss $ (1,683 ) $ (8,323 ) Undistributed earnings allocated to participating securities — — Net loss attributable to common stockholders—basic $ (1,683 ) $ (8,323 ) Denominator: Weighted average shares used in computing net loss per share attributable to common stockholders—basic 149,183 147,774 Net loss per share attributable to common stockholders—basic $ (0.01 ) $ (0.06 ) Diluted Numerator: Net loss attributable to common stockholders—diluted $ (1,683 ) $ (8,323 ) Denominator: Number of shares used for basic EPS computation 149,183 147,774 Effect of dilutive securities — — Weighted average shares used in computing net loss per share attributable to common stockholders—diluted 149,183 147,774 Net loss per share attributable to common stockholders—diluted $ (0.01 ) $ (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 2020 2019 Awards excluded from the computation of diluted net loss per share because their inclusion would have been anti-dilutive — 10

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
LEASES	LEASES 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 twelve 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. 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. Finance lease right-of-use assets of $13.9 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, 2020 and March 31, 2019 (in thousands): Three Months Ended 2020 2019 Finance lease cost Amortization of right-of-use assets $ 492 $ 550 Interest on lease liabilities 107 134 Operating lease cost 2,718 2,111 Variable lease cost 403 494 Sublease income (131 ) (317 ) Total lease cost $ 3,589 $ 2,972 Supplemental cash flow information related to leases for the three months ended March 31, 2020 and March 31, 2019 are as follows (in thousands): Three Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,492 $ 3,573 Operating cash flows for financing leases 107 134 Financing cash flows for financing leases 631 672 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ — $ 2,990 Supplemental balance sheet information related to leases as of March 31, 2020 and December 31, 2019 are as follows: March 31, December 31, Weighted average remaining lease term: Operating leases 5 years 5 years Financing leases 8 years 8 years Weighted average discount rate: Operating leases 4.8 % 4.7 % Financing leases 2.9 % 3.0 %
LEASES	LEASES 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 twelve 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. 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. Finance lease right-of-use assets of $13.9 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, 2020 and March 31, 2019 (in thousands): Three Months Ended 2020 2019 Finance lease cost Amortization of right-of-use assets $ 492 $ 550 Interest on lease liabilities 107 134 Operating lease cost 2,718 2,111 Variable lease cost 403 494 Sublease income (131 ) (317 ) Total lease cost $ 3,589 $ 2,972 Supplemental cash flow information related to leases for the three months ended March 31, 2020 and March 31, 2019 are as follows (in thousands): Three Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,492 $ 3,573 Operating cash flows for financing leases 107 134 Financing cash flows for financing leases 631 672 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ — $ 2,990 Supplemental balance sheet information related to leases as of March 31, 2020 and December 31, 2019 are as follows: March 31, December 31, Weighted average remaining lease term: Operating leases 5 years 5 years Financing leases 8 years 8 years Weighted average discount rate: Operating leases 4.8 % 4.7 % Financing leases 2.9 % 3.0 %

DEBT

DEBT	3 Months Ended
	Mar. 31, 2020
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. As of March 31, 2020 , the Company maintained a letter of credit of $1.0 million . On March 16, 2020, the Company utilized an existing revolving facility to borrow $99.0 million on its 2018 Revolving Facility. Although the Company does not have any immediate need for additional liquidity, this proactive drawdown was taken to increase its financial flexibility, including to ensure the availability of sufficient capital to deploy opportunistically from time to time, in light of unprecedented conditions due to the COVID-19 outbreak. On February 11, 2020, the Company executed an amendment to the 2018 Credit Agreement to reprice the applicable interest rate margins on the 2018 Credit Facilities, resulting in a decrease to the applicable interest rate margin by 50 basis points to 3.00% with an additional 25 basis point reduction upon achievement of a defined senior secured net leverage ratio. Other material provisions under the 2018 Credit Agreement, including covenants, the maturity date of April 2, 2025, with respect to the 2018 Term Facility, and April 2, 2023, with respect to the 2018 Revolving Facility, and amount of debt available to the Company, remained unchanged by the repricing amendment. 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 3.00% 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): March 31, December 31, 2018 Term Facility (1) $ 891,439 $ 893,737 2018 Revolving Facility 99,000 — Total Credit Facilities 990,439 893,737 Less: current portion 9,800 9,800 Non-current Credit Facilities $ 980,639 $ 883,937 ______________________________________ (1) The 2018 Term Facility is presented net of unamortized deferred financing fees and original issue discount (“OID”) of $23.9 million and $24.0 million as of March 31, 2020 and December 31, 2019 , respectively. 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, 2020 , the Company is in compliance with the covenants under the 2018 Credit Agreement.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2020
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, 2020 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 42,063 $ — $ — $ 42,063 Other current liabilities: Interest rate swaps — (16,949 ) — (16,949 ) Contingent consideration — — (3,828 ) (3,828 ) Other liabilities Interest rate swaps — (57,950 ) — (57,950 ) Contingent consideration — — (13,071 ) (13,071 ) Total $ 42,063 $ (74,899 ) $ (16,899 ) $ (49,735 ) 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, 2019 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 41,933 $ — $ — $ 41,933 Other current liabilities: Interest rate swaps — (8,354 ) — (8,354 ) Contingent consideration — — (3,719 ) (3,719 ) Other liabilities: Interest rate swaps — (30,957 ) — (30,957 ) Contingent consideration — — (13,071 ) (13,071 ) Total $ 41,933 $ (39,311 ) $ (16,790 ) $ (14,168 ) 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 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 $ (16,790 ) $ (31,824 ) Fair value adjustment (1) 17 532 Accretion expense (recognized in general and administrative expenses) (126 ) (647 ) Settlement of liability — 15,149 Total $ (16,899 ) $ (16,790 ) ______________________________________ (1) During 2019, the Company recognized an adjustment of $0.8 million in general and administrative expenses related to the change in fair value of contingent consideration, partially offset by an adjustment of $0.3 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, 2020 (in thousands): March 31, Carrying value $ 990,439 Fair value $ 903,158 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 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. During the first quarter of 2020, the Company elected to adopt the expedient in 848-50-25-2 to assert probability of the hedged interest transaction regardless of any expected modification in terms related to reference rate reform. 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, 2020 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (16,949 ) Interest rate swap contract Other liabilities $ (57,950 ) The following table presents the fair value of interest rate swaps on the balance sheet as of December 31, 2019 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (8,354 ) Interest rate swap contract Other liabilities $ (30,957 ) 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 three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (37,715 ) Interest expense $ 2,127 Three Months Ended March 31, 2019 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 loss expected to be reclassified to interest expense in the next 12 months is $17.4 million .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2020
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 2019 Form 10-K.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2020
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, 2019 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, 2020 , the results of operations, comprehensive income (loss), and stockholders’ equity, and cash flows for the three -month periods ended March 31, 2020 and 2019 . The results of operations for the three month periods ended March 31, 2020 and 2019 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, 2019 (the “ 2019 Form 10-K”). 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 June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent clarifying guidance (“ASU 2016-13”). ASU 2016-13 replaced the incurred loss impairment method with a methodology that reflects the amortized cost basis net of expected credit losses that are calculated based on certain relevant information. The standard also amended the credit loss guidance for available-for-sale debt securities and requires the measurement and recognition of an expected allowance for credit losses for financial assets held at amortized cost. The Company adopted the requirements of the new standard on January 1, 2020 using the modified-retrospective approach and there was no material impact on the Company’s consolidated financial statements and notes disclosures. In determining the estimate for expected credit losses, each quarter the Company evaluates historical loss rates for its trade receivables and unbilled receivables balance using an aging method and loss rate method and applies management judgment to determine the expected collectability of receivables. The Company considers various factors including historical invoice data, historical payment data, and days sales outstanding and considers other events that could impact future collectability. Additionally, the Company considers current economic conditions that could impact clients. While there may be fluctuations in macro-economic trends and regulatory changes, the Company believes historical trends are representative of collectability. Clients represent payer, pharmaceutical, and life science companies, along with provider networks. Due to the short-term nature of the Company’s standard payment terms and the low risk profile of clients the risk of loss reflects historical experience. In the circumstance where a receivable is deemed uncollectable, the Company will reduce the allowance for expected credit loss by the same amount of the portion of the receivable being written off. As there is no standard definition for when a receivable is deemed uncollectable, the Company will use judgment to determine when all efforts of collection have been exhausted. If the Company subsequently receives consideration for a receivable that was previously written off, the Company would increase earnings by crediting credit loss expense. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Requirements for Fair Value Measurement. This update changes the fair value measurement disclosure requirements of ASC 820. The standard consists of removals, modifications, and additions to the existing disclosure requirements. The Company adopted the requirements of the new standard on January 1, 2020 and there was no material impact on the Company’s notes disclosures. Refer to “Note 6 —Fair Value Measurements.” In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard requires that an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the requirements of the new standard on January 1, 2020 and there was no material impact on the Company’s consolidated financial statements and notes disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update removes certain exceptions and provides additional requirements that simplify the accounting for income taxes. This guidance is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the standard is permitted. The Company adopted the requirements of the new standard on January 1, 2020 and there was no material impact on the Company’s consolidated financial statements and notes disclosures. 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 2019 Form 10-K, that would be expected to impact the Company except for the following: In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by offering (in thousands): Three Months Ended 2020 2019 Platform solutions (1) $ 140,617 $ 129,952 Services (2) 13,570 15,539 Total revenue $ 154,187 $ 145,491 ______________________________________ (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 INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2020
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 2020 2019 Basic Numerator: Net loss $ (1,683 ) $ (8,323 ) Undistributed earnings allocated to participating securities — — Net loss attributable to common stockholders—basic $ (1,683 ) $ (8,323 ) Denominator: Weighted average shares used in computing net loss per share attributable to common stockholders—basic 149,183 147,774 Net loss per share attributable to common stockholders—basic $ (0.01 ) $ (0.06 ) Diluted Numerator: Net loss attributable to common stockholders—diluted $ (1,683 ) $ (8,323 ) Denominator: Number of shares used for basic EPS computation 149,183 147,774 Effect of dilutive securities — — Weighted average shares used in computing net loss per share attributable to common stockholders—diluted 149,183 147,774 Net loss per share attributable to common stockholders—diluted $ (0.01 ) $ (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 2020 2019 Awards excluded from the computation of diluted net loss per share because their inclusion would have been anti-dilutive — 10

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Lease, Cost	The following table presents components of lease expense for the three months ended March 31, 2020 and March 31, 2019 (in thousands): Three Months Ended 2020 2019 Finance lease cost Amortization of right-of-use assets $ 492 $ 550 Interest on lease liabilities 107 134 Operating lease cost 2,718 2,111 Variable lease cost 403 494 Sublease income (131 ) (317 ) Total lease cost $ 3,589 $ 2,972 Supplemental cash flow information related to leases for the three months ended March 31, 2020 and March 31, 2019 are as follows (in thousands): Three Months Ended 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 2,492 $ 3,573 Operating cash flows for financing leases 107 134 Financing cash flows for financing leases 631 672 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ — $ 2,990 Supplemental balance sheet information related to leases as of March 31, 2020 and December 31, 2019 are as follows: March 31, December 31, Weighted average remaining lease term: Operating leases 5 years 5 years Financing leases 8 years 8 years Weighted average discount rate: Operating leases 4.8 % 4.7 % Financing leases 2.9 % 3.0 %

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2020
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) $ 891,439 $ 893,737 2018 Revolving Facility 99,000 — Total Credit Facilities 990,439 893,737 Less: current portion 9,800 9,800 Non-current Credit Facilities $ 980,639 $ 883,937 ______________________________________ (1) The 2018 Term Facility is presented net of unamortized deferred financing fees and original issue discount (“OID”) of $23.9 million and $24.0 million as of March 31, 2020 and December 31, 2019 , respectively.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2020 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 42,063 $ — $ — $ 42,063 Other current liabilities: Interest rate swaps — (16,949 ) — (16,949 ) Contingent consideration — — (3,828 ) (3,828 ) Other liabilities Interest rate swaps — (57,950 ) — (57,950 ) Contingent consideration — — (13,071 ) (13,071 ) Total $ 42,063 $ (74,899 ) $ (16,899 ) $ (49,735 ) 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, 2019 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 41,933 $ — $ — $ 41,933 Other current liabilities: Interest rate swaps — (8,354 ) — (8,354 ) Contingent consideration — — (3,719 ) (3,719 ) Other liabilities: Interest rate swaps — (30,957 ) — (30,957 ) Contingent consideration — — (13,071 ) (13,071 ) Total $ 41,933 $ (39,311 ) $ (16,790 ) $ (14,168 )
Schedule of financial instruments measured at fair value using unobservable inputs (Level 3)	The following table presents 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 $ (16,790 ) $ (31,824 ) Fair value adjustment (1) 17 532 Accretion expense (recognized in general and administrative expenses) (126 ) (647 ) Settlement of liability — 15,149 Total $ (16,899 ) $ (16,790 ) ______________________________________ (1) During 2019, the Company recognized an adjustment of $0.8 million in general and administrative expenses related to the change in fair value of contingent consideration, partially offset by an adjustment of $0.3 million recognized in goodwill, which was a purchase accounting adjustment attributable to the ABILITY Acquisition.
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 March 31, 2020 (in thousands): March 31, Carrying value $ 990,439 Fair value $ 903,158
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, 2020 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (16,949 ) Interest rate swap contract Other liabilities $ (57,950 ) The following table presents the fair value of interest rate swaps on the balance sheet as of December 31, 2019 (in thousands): Liability Derivative Balance Sheet Location Fair Value Interest rate swap contract Other current liabilities $ (8,354 ) Interest rate swap contract Other liabilities $ (30,957 )
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 three months ended March 31, 2020 and 2019 (in thousands): Three Months Ended March 31, 2020 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (37,715 ) Interest expense $ 2,127 Three Months Ended March 31, 2019 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (12,408 ) Interest expense $ 529

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 154,187	$ 145,491
Platform Solutions
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	140,617	129,952
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 13,570	$ 15,539

REVENUE - Additional Informatio

REVENUE - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Unbilled receivables	$ 27.4	$ 36
Deferred commissions	12.9	11.8
Deferred contract asset	13.6	5.8
Deferred revenue	17.7	13.7
Contract with customer, asset (liability), net	(13)	$ (11.4)
Deferred revenue, revenue recognized	$ 7.5

NET INCOME (LOSS) PER SHARE - A

NET INCOME (LOSS) PER SHARE - Additional Information (Details) - shares	Jun. 05, 2019	Mar. 31, 2020	Dec. 31, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Common stock, authorized (in shares)		900,000,000	900,000,000
Class A Common
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Additional shares authorized (in shares)	6,000,000
Common stock, authorized (in shares)	13,335,430	750,000,000	750,000,000

NET INCOME (LOSS) PER SHARE - T

NET INCOME (LOSS) PER SHARE - Tabular Disclosure (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic
Net loss	$ (1,683)	$ (8,323)
Undistributed earnings allocated to participating securities	0	0
Net loss attributable to common stockholders—basic	$ (1,683)	$ (8,323)
Weighted average shares used in computing net income (loss) per share attributable to common stockholders - basic (in shares)	149,183	147,774
Net (loss) income per share attributable to common stockholders - basic (in dollars per share)	$ (0.01)	$ (0.06)
Diluted
Net loss attributable to common stockholders—diluted	$ (1,683)	$ (8,323)
Effect of dilutive securities (in shares)	0	0
Weighted average shares used in computing net income (loss) per share attributable to common stockholders - diluted (in shares)	149,183	147,774
Net income (loss) per share attributable to common stockholders - diluted (in dollars per share)	$ (0.01)	$ (0.06)

NET INCOME (LOSS) PER SHARE -_2

NET INCOME (LOSS) PER SHARE - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Equity awards
NET INCOME PER SHARE
Awards excluded from the computation of diluted net income (loss) per share because their inclusion would have been anti-dilutive (in shares)	0	10

LEASES - Additional Information

LEASES - Additional Information (Details)	Mar. 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Finance lease, right-of-use asset	$ 13,900,000
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	12 years

LEASES - Components of Lease Ex

LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Amortization of right-of-use assets	$ 492	$ 550
Interest on lease liabilities	107	134
Operating lease cost	2,718	2,111
Variable lease cost	403	494
Sublease income	(131)	(317)
Total lease cost	$ 3,589	$ 2,972

LEASES - Other Information Rela

LEASES - Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 2,492	$ 3,573
Operating cash flows for financing leases	107	134
Financing cash flows for financing leases	631	672
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$ 0	$ 2,990
Weighted average remaining lease term, operating lease	5 years		5 years
Weighted average remaining lease term, financing lease	8 years		8 years
Weighted average discount rate, operating leases	4.80%		4.70%
Weighted average discount rate, financing leases	2.90%		3.00%

DEBT - Additional Information (

DEBT - Additional Information (Details) - USD ($)	Mar. 16, 2020	Feb. 11, 2020	Mar. 31, 2020	Apr. 02, 2018
Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			3.00%
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%
Secured Debt | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate, increase (decrease)		0.50%
Interest rate, stated percentage		3.00%
Interest rate reduction upon achievement of certain criteria		0.25%
Morgan Stanley Senior Funding, Inc. | Secured Debt | Line of Credit
Debt Instrument [Line Items]
Face amount			$ 1,000,000
Morgan Stanley Senior Funding, Inc. | Secured Debt | 2018 Term Facility
Debt Instrument [Line Items]
Face amount				$ 980,000,000
Morgan Stanley Senior Funding, Inc. | Secured Debt | 2018 Revolving Facility
Debt Instrument [Line Items]
Face amount				$ 100,000,000
Proceeds from lines of credit	$ 99,000,000

DEBT - Schedule of Debt (Detail

DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Line of Credit Facility [Line Items]
Credit Facilities	$ 990,439	$ 893,737
Credit facilities	9,800	9,800
Credit facilities, less current portion	980,639	883,937
Morgan Stanley Senior Funding, Inc. | Secured Debt
Line of Credit Facility [Line Items]
Credit Facilities	891,439	893,737
Unamortized loan commitment and origination fees and unamortized discounts or premiums	23,900	24,000
Morgan Stanley Senior Funding, Inc. | Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit Facilities	$ 99,000	$ 0

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Liabilities / Other Current Liabilities:
Total	$ (49,735)	$ (14,168)
Money market funds
Cash equivalents:
Cash equivalents	42,063	41,933
Level 1
Liabilities / Other Current Liabilities:
Total	42,063	41,933
Level 1 | Money market funds
Cash equivalents:
Cash equivalents	42,063	41,933
Level 2
Liabilities / Other Current Liabilities:
Total	(74,899)	(39,311)
Level 2 | Money market funds
Cash equivalents:
Cash equivalents	0	0
Level 3
Liabilities / Other Current Liabilities:
Total	(16,899)	(16,790)
Level 3 | Money market funds
Cash equivalents:
Cash equivalents	0	0
Other Current Liabilities | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(3,828)	(3,719)
Other Current Liabilities | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	(16,949)	(8,354)
Other Current Liabilities | Level 1 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Current Liabilities | Level 1 | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	0	0
Other Current Liabilities | Level 2 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Current Liabilities | Level 2 | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	(16,949)	(8,354)
Other Current Liabilities | Level 3 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(3,828)	(3,719)
Other Current Liabilities | Level 3 | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	0	0
Other Liabilities | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(13,071)	(13,071)
Other Liabilities | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	(57,950)	(30,957)
Other Liabilities | Level 1 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Liabilities | Level 1 | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	0	0
Other Liabilities | Level 2 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	0	0
Other Liabilities | Level 2 | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	(57,950)	(30,957)
Other Liabilities | Level 3 | Contingent consideration
Liabilities / Other Current Liabilities:
Contingent consideration	(13,071)	(13,071)
Other Liabilities | Level 3 | Interest rate swaps
Liabilities / Other Current Liabilities:
Interest rate swaps	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs (Level 3) (Details) - Level 3 - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value Measurements Using Unobservable Inputs (Level 3)
Balance, beginning of period	$ (16,790)	$ (31,824)
Fair value adjustment	17	532
Accretion expense (recognized in general and administrative expenses)	(126)	(647)
Settlement of liability	0	15,149
Total	$ (16,899)	(16,790)
Goodwill
Fair Value Measurements Using Unobservable Inputs (Level 3)
Fair value adjustment		(300)
General and administrative
Fair Value Measurements Using Unobservable Inputs (Level 3)
Fair value adjustment		$ 800

FAIR VALUE MEASUREMENTS - Debt

FAIR VALUE MEASUREMENTS - Debt (Details) $ in Thousands	Mar. 31, 2020USD ($)
Fair Value Disclosures [Abstract]
Carrying value	$ 990,439
Fair value	$ 903,158

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions	Mar. 31, 2020USD ($)	Jun. 30, 2018swap
Derivatives, Fair Value [Line Items]
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net	$ (17.4)
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Interest rate derivatives held | swap		4
Amount of hedged item	$ 700
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, 2020	Mar. 31, 2019	Dec. 31, 2019
Derivative Liability [Abstract]
Gain (Loss) recognized in OCI	$ (37,715)	$ (12,408)
(Gain) Loss reclassified from OCI	2,127	$ 529
Other Current Liabilities
Derivative Liability [Abstract]
Fair Value	(16,949)		$ (8,354)
Other Liabilities
Derivative Liability [Abstract]
Fair Value	$ (57,950)		$ (30,957)

Uncategorized Items - inovq1202

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 65,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 65,000