Inovalon (INOV) 10-Q 28 Jul 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 16, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
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
Trading Symbol	INOV
Security Exchange Name	NASDAQ
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	2021
Document Fiscal Period Focus	Q2
Class A Common
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		78,255,693
Class B Common
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		78,081,076

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 117,915	$ 123,880
Accounts receivable (net of allowances of $3,735 at June 30, 2021 and $2,700 at December 31, 2020)	161,236	148,003
Prepaid expenses and other current assets	36,440	26,529
Income tax receivable	27,168	24,664
Total current assets	342,759	323,076
Non-current assets:
Property, equipment and capitalized software, net	175,423	168,113
Operating lease right-of-use assets	32,557	35,355
Goodwill	955,881	955,881
Intangible assets, net	433,619	452,558
Other assets	35,364	36,415
Total assets	1,975,603	1,971,398
Current liabilities:
Accounts payable and accrued expenses	47,215	52,998
Accrued compensation	32,307	40,860
Other current liabilities	42,641	39,835
Deferred revenue	11,212	10,854
Credit facilities	9,800	9,800
Operating lease liabilities	6,910	5,968
Finance lease liabilities	3,510	3,963
Total current liabilities	153,595	164,278
Non-current liabilities:
Credit facilities, less current portion	874,918	877,574
Operating lease liabilities, less current portion	39,258	40,807
Finance lease liabilities, less current portion	23,798	25,759
Other liabilities	38,009	54,350
Deferred income taxes	100,516	99,916
Total liabilities	1,230,094	1,262,684
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 June 30, 2021 and December 31, 2020, respectively	0	0
Additional paid-in-capital	662,727	655,444
Retained earnings	319,626	300,890
Treasury stock, at cost, 14,620,175 shares at June 30, 2021 and December 31, 2020, respectively	(199,817)	(199,817)
Other comprehensive loss	(37,028)	(47,804)
Total stockholders’ equity	745,509	708,714
Total liabilities and stockholders’ equity	1,975,603	1,971,398
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	Jun. 30, 2021	Dec. 31, 2020
Accounts receivable, allowances	$ 3,735	$ 2,700
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
Treasury stock (in shares)	14,620,175	14,620,175
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)	92,666,590	91,617,450
Common stock, outstanding (in shares)	78,046,415	76,997,275
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)	78,081,076	78,331,591
Common stock, outstanding (in shares)	78,081,076	78,331,591

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue		$ 190,439	$ 162,215	$ 367,615	$ 316,402
Expenses:
Cost of revenue	[1]	51,665	36,761	96,062	77,804
Sales and marketing	[1]	21,734	15,073	41,208	30,232
Research and development	[1]	9,349	8,835	17,868	15,939
General and administrative	[1]	53,543	55,229	106,568	109,112
Depreciation and amortization		29,910	30,632	58,341	58,566
Total operating expenses		166,201	146,530	320,047	291,653
Income from operations		24,238	15,685	47,568	24,749
Other income and (expenses):
Interest income		51	96	97	386
Interest expense		(12,864)	(14,260)	(25,992)	(28,820)
Other expense, net		(38)	(148)	(40)	(170)
Income (Loss) before taxes		11,387	1,373	21,633	(3,855)
Provision for (Benefit from) income taxes		1,807	(652)	2,897	(4,197)
Net income		9,580	2,025	18,736	342
Net income attributable to common stockholders, basic		9,333	1,964	18,242	331
New income attributable to common stockholders, diluted		$ 9,333	$ 1,964	$ 18,242	$ 331
Net income per share attributable to common stockholders, basic and diluted:
Basic net income per share (in dollars per share)		$ 0.06	$ 0.01	$ 0.12	$ 0
Diluted net income per share (in dollars per share)		$ 0.06	$ 0.01	$ 0.12	$ 0
Weighted average shares of common stock outstanding:
Basic (in shares)		150,690	149,517	150,498	149,350
Diluted (in shares)		150,765	149,685	150,658	149,521
[1]	(1) Includes stock-based compensation expense as follows: Cost of revenue $ 264 $ 153 $ 485 $ 318 Sales and marketing 1,136 752 2,074 1,372 Research and development 363 269 683 722 General and administrative 6,519 6,691 10,703 12,709 Total stock-based compensation expense $ 8,282 $ 7,865 $ 13,945 $ 15,121

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 8,282	$ 7,865	$ 13,945	$ 15,121
Cost of revenue
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	264	153	485	318
Sales and marketing
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	1,136	752	2,074	1,372
Research and development
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	363	269	683	722
General and administrative
Includes stock-based compensation expense as follows:
Total stock-based compensation expense	$ 6,519	$ 6,691	$ 10,703	$ 12,709

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 9,580	$ 2,025	$ 18,736	$ 342
Other comprehensive income (loss):
Realized losses on cash flow hedges reclassified from accumulated other comprehensive income, net of tax of $(1,532), $(1,293), $(3,033), and $(1,974) respectively	3,238	2,747	6,416	4,193
Net change in unrealized gains (losses) on cash flow hedges, net of tax of $926, $2,623, $(2,024), and $14,692, respectively	(1,905)	(5,571)	4,360	(31,217)
Comprehensive income (loss)	$ 10,913	$ (799)	$ 29,512	$ (26,682)

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Realized losses on cash flow hedges reclassified from accumulated other comprehensive income, tax	$ (1,532)	$ (1,293)	$ (3,033)	$ (1,974)
Net change in unrealized (losses) gains on cash flow hedges, tax	$ 926	$ 2,623	$ (2,024)	$ 14,692

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Class A Common	Class B Common	Common StockClass A Common	Common StockClass B Common	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to retained earnings for adoption of ASC 326	$ 688,159			$ 1	$ 0	$ (199,817)	$ 636,461	$ 278,246	$ (26,732)	$ 65	$ 65
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)	65	65
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 income	(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)
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)	$ 65	$ 65
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	342
Ending balance (in shares) at Jun. 30, 2020				90,709,951	79,270,861	(14,620,175)
Ending balance at Jun. 30, 2020	671,536			$ 1	$ 0	$ (199,817)	646,455	278,653	(53,756)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to retained earnings for adoption of ASC 326	666,741			$ 1	$ 0	$ (199,817)	640,861	276,628	(50,932)
Beginning balance (in shares) at Mar. 31, 2020				90,875,472	79,270,861	(14,620,175)
Beginning balance at Mar. 31, 2020	666,741			$ 1	$ 0	$ (199,817)	640,861	276,628	(50,932)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	7,757						7,757
Issuance of shares related to restricted stock units and awards, net of forfeitures (in shares)				(40,849)
Shares withheld for employee taxes upon conversion of restricted stock (in shares)				(124,672)
Shares withheld for employee taxes upon conversion of restricted stock	(2,163)						(2,163)
Other comprehensive loss	(2,824)								(2,824)
Net income	2,025							2,025
Ending balance (in shares) at Jun. 30, 2020				90,709,951	79,270,861	(14,620,175)
Ending balance at Jun. 30, 2020	671,536			$ 1	$ 0	$ (199,817)	646,455	278,653	(53,756)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to retained earnings for adoption of ASC 326	671,536			1	0	(199,817)	646,455	278,653	(53,756)
Adjustment to retained earnings for adoption of ASC 326	708,714			$ 1	$ 0	$ (199,817)	655,444	300,890	(47,804)
Beginning balance (in shares) at Dec. 31, 2020				91,617,450	78,331,591	(14,620,175)
Beginning balance at Dec. 31, 2020	708,714			$ 1	$ 0	$ (199,817)	655,444	300,890	(47,804)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	5,533						5,533
Exercise of stock options (in shares)				165,311
Exercise of stock options	1,110						1,110
Issuance of shares related to restricted stock units and awards, net of forfeitures (in shares)				619,090
Shares withheld for employee taxes upon conversion of restricted stock (in shares)				(159,699)
Shares withheld for employee taxes upon conversion of restricted stock	(4,235)						(4,235)
Other comprehensive loss	9,443								9,443
Net income	9,156							9,156
Ending balance (in shares) at Mar. 31, 2021				92,242,152	78,331,591	(14,620,175)
Ending balance at Mar. 31, 2021	729,721			$ 1	$ 0	$ (199,817)	657,852	310,046	(38,361)
Beginning balance (in shares) at Dec. 31, 2020				91,617,450	78,331,591	(14,620,175)
Beginning balance at Dec. 31, 2020	708,714			$ 1	$ 0	$ (199,817)	655,444	300,890	(47,804)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,736
Ending balance (in shares) at Jun. 30, 2021				92,666,590	78,081,076	(14,620,175)
Ending balance at Jun. 30, 2021	745,509			$ 1	$ 0	$ (199,817)	662,727	319,626	(37,028)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to retained earnings for adoption of ASC 326	729,721			$ 1	$ 0	$ (199,817)	657,852	310,046	(38,361)
Beginning balance (in shares) at Mar. 31, 2021				92,242,152	78,331,591	(14,620,175)
Beginning balance at Mar. 31, 2021	729,721			$ 1	$ 0	$ (199,817)	657,852	310,046	(38,361)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	8,176						8,176
Conversion Class B to Class A common stock (in shares)		250,515	(250,515)
Issuance of shares related to restricted stock units and awards, net of forfeitures (in shares)				281,030
Shares withheld for employee taxes upon conversion of restricted stock (in shares)				(107,107)
Shares withheld for employee taxes upon conversion of restricted stock	(3,301)						(3,301)
Other comprehensive loss	1,333								1,333
Net income	9,580							9,580
Ending balance (in shares) at Jun. 30, 2021				92,666,590	78,081,076	(14,620,175)
Ending balance at Jun. 30, 2021	745,509			$ 1	$ 0	$ (199,817)	662,727	319,626	(37,028)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to retained earnings for adoption of ASC 326	$ 745,509			$ 1	$ 0	$ (199,817)	$ 662,727	$ 319,626	$ (37,028)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 18,736	$ 342
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	13,945	15,121
Depreciation	31,310	30,766
Amortization of intangibles	27,031	27,800
Amortization of debt issuance costs and debt discount	2,445	2,338
Deferred income taxes	(4,458)	(2,139)
Change in fair value of acquisition-related contingent consideration	0	3
Other	1,252	1,008
Changes in assets and liabilities:
Accounts receivable	(13,324)	(2,293)
Prepaid expenses and other current assets	(6,835)	(110)
Income taxes receivable	(2,505)	(2,517)
Other assets	1,206	(1,458)
Accounts payable and accrued expenses	0	3,649
Accrued compensation	(9,323)	(6,533)
Other current and non-current liabilities	2,062	(3,158)
Deferred revenue	(4,018)	472
Payment for acquisition-related contingent consideration	0	(160)
Net cash provided by operating activities	57,524	63,131
Cash flows from investing activities:
Purchases of property and equipment	(8,279)	(12,787)
Investment in capitalized software	(32,216)	(22,677)
Purchase of intangible assets	(9,254)	(10,819)
Net cash used in investing activities	(49,749)	(46,283)
Cash flows from financing activities:
Proceeds from credit facility borrowings	0	99,000
Repayment of credit facility borrowings	(4,900)	(103,900)
Payments for debt issuance costs	0	(1,000)
Proceeds from exercise of stock options	1,110	183
Finance lease liabilities paid	(2,414)	(1,331)
Tax payments for equity award issuances	(7,536)	(5,110)
Payment for acquisition-related contingent consideration	0	(2,173)
Net cash used in financing activities	(13,740)	(14,331)
(Decrease) Increase in cash and cash equivalents	(5,965)	2,517
Cash and cash equivalents, beginning of period	123,880	93,094
Cash and cash equivalents, end of period	117,915	95,611
Supplemental cash flow disclosure:
Income taxes paid, net	9,966	352
Interest paid	22,271	26,994
Non-cash transactions:
Accruals for purchases of property and equipment	5,876	3,559
Accruals for investment in capitalized software	6,839	773
Accruals for purchase of intangible assets	1,390	0
Leasehold improvements paid by lessor	$ 0	$ 305

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2021
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, 2020 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 June 30, 2021, the results of operations, comprehensive income (loss), and stockholders’ equity for the three and six-month periods ended June 30, 2021 and 2020 and cash flows for the six month period ended June 30, 2021 and 2020. The results of operations for the three and six-month periods ended June 30, 2021 and 2020 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, 2020 (the “2020 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 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 2020 Form 10-K, that would be expected to impact the Company.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2021
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 Six Months Ended 2021 2020 2021 2020 Platform solutions (1) $ 172,052 $ 147,148 $ 333,671 $ 287,765 Services (2) 18,387 15,067 33,944 28,637 Total revenue $ 190,439 $ 162,215 $ 367,615 $ 316,402 ______________________________________ (1) Platform solutions include arrangements for technology-based offerings representing subscription-based cloud-based platform offerings, real-time accessibility of comprehensive patient-specific healthcare data and analytical insights through Inovalon DataStream™, 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 As of June 30, 2021, the Company had contract assets of $92.8 million of which $69.5 million was included in accounts receivable, $8.9 million was included in prepaid expenses and other current assets, and $14.4 million was included in other assets on the consolidated balance sheets. As of December 31, 2020, the Company had contract assets of $63.0 million of which $40.2 million was included in accounts receivable, $7.6 million was included in prepaid expenses and other current assets, and $15.2 million was included in other assets on the consolidated balance sheets. As of June 30, 2021, the Company had contract liabilities of $22.8 million, which is included in deferred revenue on the consolidated balance sheet and presented net of contract assets of $11.6 million. As of December 31, 2020, the Company had contract liabilities of $22.3 million, which is included in deferred revenue on the consolidated balance sheet and presented net of contract assets of $11.4 million. Revenue recognized during the three and six months ended June 30, 2021 that was included in the deferred revenue balance at the beginning of the year was $5.8 million and $15.9 million, respectively. Costs to Obtain a Contract

NET INCOME PER SHARE

NET INCOME PER SHARE	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NET 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 income by the weighted average number of shares of common stock (Class A common stock and Class B common stock) outstanding during the period. Diluted EPS is computed by dividing net income by the sum of the weighted average number of shares of common stock outstanding and potentially dilutive securities outstanding during the period under the treasury stock method. If the Company incurs a loss from continuing operations, diluted EPS is computed in the same manner as basic EPS. Potentially dilutive securities include stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”). Under the treasury stock method, dilutive securities are assumed to be exercised at the beginning of the periods and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Securities are excluded from the computations of diluted earnings per share if their effect would be anti-dilutive to EPS. 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 per share of Class A and Class B common stock. Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income, less earnings attributable to participating securities. The net income per share attributable to common stockholders is allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if the income for the period has been distributed. As the liquidation and dividend rights are identical for both classes of common stock, the net income attributable to common stockholders is allocated on a proportionate basis. If the Company incurs a loss from continuing operations, losses are not allocated to participating securities. The following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated (in thousands, except per share amounts): Three Months Ended Six Months Ended 2021 2020 2021 2020 Basic Numerator: Net income $ 9,580 $ 2,025 $ 18,736 $ 342 Undistributed earnings allocated to participating securities (247) (61) (494) (11) Net income attributable to common stockholders—basic $ 9,333 $ 1,964 $ 18,242 $ 331 Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 150,690 149,517 150,498 149,350 Net income per share attributable to common stockholders—basic $ 0.06 $ 0.01 $ 0.12 $ — Diluted Numerator: Net income attributable to common stockholders—diluted $ 9,333 $ 1,964 $ 18,242 $ 331 Denominator: Number of shares used for basic EPS computation 150,690 149,517 150,498 149,350 Effect of dilutive securities 75 168 160 171 Weighted average shares used in computing net income per share attributable to common stockholders—diluted 150,765 149,685 150,658 149,521 Net income per share attributable to common stockholders—diluted $ 0.06 $ 0.01 $ 0.12 $ —

LEASES

LEASES	6 Months Ended
	Jun. 30, 2021
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. Certain Company 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 $21.3 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 and six months ended June 30, 2021 and June 30, 2020 (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Finance lease cost Amortization of right-of-use assets $ 937 $ 1,261 $ 1,874 $ 1,753 Interest on lease liabilities 208 274 427 381 Operating lease cost 2,216 2,545 4,430 5,263 Variable lease cost 255 373 603 776 Sublease income (131) (213) (344) (344) Total lease cost $ 3,485 $ 4,240 $ 6,990 $ 7,829 Supplemental cash flow information related to leases for the six months ended June 30, 2021 and June 30, 2020 are as follows (in thousands): Six Months Ended 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 3,293 $ 5,075 Operating cash flows for financing leases 430 472 Financing cash flows for financing leases 2,414 1,331 Right-of-use assets obtained in exchange for lease liabilities (1) : Operating leases $ 676 $ (8,017) Finance leases — 10,785 ______________________________________ (1) During the second quarter of 2020, the Company executed an amendment to an existing lease agreement resulting in the reclassification of certain lease components from an operating lease to a finance lease. As such, the Company recorded an adjustment to reduce the operating lease liability and the corresponding operating lease right-of-use asset and increase the finance lease liability and corresponding finance lease right-of-use asset. Supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020 are as follows: June 30, December 31, Weighted average remaining lease term: Operating leases 4 years 4 years Financing leases 8 years 8 years Weighted average discount rate: Operating leases 4.1 % 4.1 % Financing leases 3.0 % 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. Certain Company 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 $21.3 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 and six months ended June 30, 2021 and June 30, 2020 (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Finance lease cost Amortization of right-of-use assets $ 937 $ 1,261 $ 1,874 $ 1,753 Interest on lease liabilities 208 274 427 381 Operating lease cost 2,216 2,545 4,430 5,263 Variable lease cost 255 373 603 776 Sublease income (131) (213) (344) (344) Total lease cost $ 3,485 $ 4,240 $ 6,990 $ 7,829 Supplemental cash flow information related to leases for the six months ended June 30, 2021 and June 30, 2020 are as follows (in thousands): Six Months Ended 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 3,293 $ 5,075 Operating cash flows for financing leases 430 472 Financing cash flows for financing leases 2,414 1,331 Right-of-use assets obtained in exchange for lease liabilities (1) : Operating leases $ 676 $ (8,017) Finance leases — 10,785 ______________________________________ (1) During the second quarter of 2020, the Company executed an amendment to an existing lease agreement resulting in the reclassification of certain lease components from an operating lease to a finance lease. As such, the Company recorded an adjustment to reduce the operating lease liability and the corresponding operating lease right-of-use asset and increase the finance lease liability and corresponding finance lease right-of-use asset. Supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020 are as follows: June 30, December 31, Weighted average remaining lease term: Operating leases 4 years 4 years Financing leases 8 years 8 years Weighted average discount rate: Operating leases 4.1 % 4.1 % Financing leases 3.0 % 3.0 %

DEBT

DEBT	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021, the Company had $100.0 million available to it consisting of $99.0 million on the 2018 Revolving Facility and a letter of credit of $1.0 million. 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%. During the first quarter of 2021, the Company achieved a defined senior secured net leverage ratio which resulted in an additional 25 basis point reduction to the applicable interest rate margin to 2.75%. 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 2.75% or (ii) the Alternate Base Rate (“ABR”) plus an applicable margin. The Company may elect interest periods of one, two, three or six months for Adjusted LIBOR borrowings. As set forth in the 2018 Credit Agreement, the ABR is the higher of: (i) the rate that MSSF as administrative agent announces from time to time as its prime or base commercial lending rate, as in effect from time to time, (ii) the Federal Funds Effective Rate plus ½ of 1.0% and (iii) one-month Adjusted LIBOR plus 1.0%. The following table discloses the outstanding debt at each balance date as follows (in thousands): June 30, December 31, 2018 Term Facility (1) $ 884,718 $ 887,374 Less: current portion 9,800 9,800 Non-current Credit Facilities $ 874,918 $ 877,574 ______________________________________ (1) The 2018 Term Facility is presented net of unamortized deferred financing fees and original issue discount (“OID”) of $18.3 million and $20.6 million as of June 30, 2021 and December 31, 2020, 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 June 30, 2021, the Company is in compliance with the covenants under the 2018 Credit Agreement.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 42,098 $ — $ — $ 42,098 Other current liabilities: Interest rate swaps — (18,723) — (18,723) Contingent consideration — — (14,810) (14,810) Other liabilities: Interest rate swaps — (35,810) — (35,810) Contingent consideration — — (1,373) (1,373) Total $ 42,098 $ (54,533) $ (16,183) $ (28,618) 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, 2020 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 42,096 $ — $ — $ 42,096 Other current liabilities: Interest rate swaps — (18,694) — (18,694) Contingent consideration — — (14,810) (14,810) Other liabilities: Interest rate swaps — (51,659) — (51,659) Contingent consideration — — (1,373) (1,373) Total $ 42,096 $ (70,353) $ (16,183) $ (44,440) 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 prevailing market interest rates and discount rates to present value future cash flows based on the forward LIBOR yield curves. Such market rates or prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted rates or 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 rates or 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 June 30, December 31, Balance, beginning of period $ (16,183) $ (16,790) Fair value adjustment (recognized in general and administrative expenses) — (2,967) Accretion expense (recognized in general and administrative expenses) — (109) Settlement of liability — 3,683 Total $ (16,183) $ (16,183) 2018 Credit Facilities The Company records debt on the balance sheet at carrying value. The estimated fair value of the Company’s debt is determined based on Level 2 inputs including current market rates for similar types of borrowings. The following table presents the carrying value and fair value of the Company’s debt (including the current portion thereof) as of June 30, 2021 (in thousands): June 30, Carrying value $ 884,718 Fair value $ 878,083 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. 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 (loss) 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 location and amount of gains and losses on interest rate swaps included in other comprehensive income (“OCI”) and the statement of operations for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (2,831) Interest expense $ 4,770 Six Months Ended June 30, 2021 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ 6,384 Interest expense $ 9,449 Three Months Ended June 30, 2020 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (8,194) Interest expense $ 4,040 Six Months Ended June 30, 2020 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (45,909) Interest expense $ 6,167 The net amount of accumulated other comprehensive loss expected to be reclassified to interest expense in the next 12 months is $18.8 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
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 2020 Form 10-K.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2021
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, 2020 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 June 30, 2021, the results of operations, comprehensive income (loss), and stockholders’ equity for the three and six-month periods ended June 30, 2021 and 2020 and cash flows for the six month period ended June 30, 2021 and 2020. The results of operations for the three and six-month periods ended June 30, 2021 and 2020 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, 2020 (the “2020 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 and Recently Issued Accounting Standards	Recently Issued Accounting Standards There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and note disclosures, from those disclosed in the 2020 Form 10-K, that would be expected to impact the Company.

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by offering (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Platform solutions (1) $ 172,052 $ 147,148 $ 333,671 $ 287,765 Services (2) 18,387 15,067 33,944 28,637 Total revenue $ 190,439 $ 162,215 $ 367,615 $ 316,402 ______________________________________ (1) Platform solutions include arrangements for technology-based offerings representing subscription-based cloud-based platform offerings, real-time accessibility of comprehensive patient-specific healthcare data and analytical insights through Inovalon DataStream™, 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 PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of Numerators and Denominators of The Basic and Diluted EPS	The following table reconciles the weighted average shares outstanding for basic and diluted EPS for the periods indicated (in thousands, except per share amounts): Three Months Ended Six Months Ended 2021 2020 2021 2020 Basic Numerator: Net income $ 9,580 $ 2,025 $ 18,736 $ 342 Undistributed earnings allocated to participating securities (247) (61) (494) (11) Net income attributable to common stockholders—basic $ 9,333 $ 1,964 $ 18,242 $ 331 Denominator: Weighted average shares used in computing net income per share attributable to common stockholders—basic 150,690 149,517 150,498 149,350 Net income per share attributable to common stockholders—basic $ 0.06 $ 0.01 $ 0.12 $ — Diluted Numerator: Net income attributable to common stockholders—diluted $ 9,333 $ 1,964 $ 18,242 $ 331 Denominator: Number of shares used for basic EPS computation 150,690 149,517 150,498 149,350 Effect of dilutive securities 75 168 160 171 Weighted average shares used in computing net income per share attributable to common stockholders—diluted 150,765 149,685 150,658 149,521 Net income per share attributable to common stockholders—diluted $ 0.06 $ 0.01 $ 0.12 $ —

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Lease, Cost	The following table presents components of lease expense for the three and six months ended June 30, 2021 and June 30, 2020 (in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Finance lease cost Amortization of right-of-use assets $ 937 $ 1,261 $ 1,874 $ 1,753 Interest on lease liabilities 208 274 427 381 Operating lease cost 2,216 2,545 4,430 5,263 Variable lease cost 255 373 603 776 Sublease income (131) (213) (344) (344) Total lease cost $ 3,485 $ 4,240 $ 6,990 $ 7,829 Supplemental cash flow information related to leases for the six months ended June 30, 2021 and June 30, 2020 are as follows (in thousands): Six Months Ended 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 3,293 $ 5,075 Operating cash flows for financing leases 430 472 Financing cash flows for financing leases 2,414 1,331 Right-of-use assets obtained in exchange for lease liabilities (1) : Operating leases $ 676 $ (8,017) Finance leases — 10,785 ______________________________________ (1) During the second quarter of 2020, the Company executed an amendment to an existing lease agreement resulting in the reclassification of certain lease components from an operating lease to a finance lease. As such, the Company recorded an adjustment to reduce the operating lease liability and the corresponding operating lease right-of-use asset and increase the finance lease liability and corresponding finance lease right-of-use asset. Supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020 are as follows: June 30, December 31, Weighted average remaining lease term: Operating leases 4 years 4 years Financing leases 8 years 8 years Weighted average discount rate: Operating leases 4.1 % 4.1 % Financing leases 3.0 % 3.0 %

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Schedule of Line of Credit Facilities	The following table discloses the outstanding debt at each balance date as follows (in thousands): June 30, December 31, 2018 Term Facility (1) $ 884,718 $ 887,374 Less: current portion 9,800 9,800 Non-current Credit Facilities $ 874,918 $ 877,574 ______________________________________

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value Hierarchy For Financial Assets and Liabilities Measured at Fair Value On A Recurring Basis	The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 42,098 $ — $ — $ 42,098 Other current liabilities: Interest rate swaps — (18,723) — (18,723) Contingent consideration — — (14,810) (14,810) Other liabilities: Interest rate swaps — (35,810) — (35,810) Contingent consideration — — (1,373) (1,373) Total $ 42,098 $ (54,533) $ (16,183) $ (28,618) 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, 2020 (in thousands): Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 42,096 $ — $ — $ 42,096 Other current liabilities: Interest rate swaps — (18,694) — (18,694) Contingent consideration — — (14,810) (14,810) Other liabilities: Interest rate swaps — (51,659) — (51,659) Contingent consideration — — (1,373) (1,373) Total $ 42,096 $ (70,353) $ (16,183) $ (44,440)
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 June 30, December 31, Balance, beginning of period $ (16,183) $ (16,790) Fair value adjustment (recognized in general and administrative expenses) — (2,967) Accretion expense (recognized in general and administrative expenses) — (109) Settlement of liability — 3,683 Total $ (16,183) $ (16,183)
Fair Value, by Balance Sheet Grouping	The following table presents the carrying value and fair value of the Company’s debt (including the current portion thereof) as of June 30, 2021 (in thousands): June 30, Carrying value $ 884,718 Fair value $ 878,083
Reclassification out of Accumulated Other Comprehensive Income	The following table presents the location and amount of gains and losses on interest rate swaps included in other comprehensive income (“OCI”) and the statement of operations for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (2,831) Interest expense $ 4,770 Six Months Ended June 30, 2021 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ 6,384 Interest expense $ 9,449 Three Months Ended June 30, 2020 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (8,194) Interest expense $ 4,040 Six Months Ended June 30, 2020 Gain (Loss) recognized in OCI Statement of Operations Location (Gain) Loss reclassified from OCI Interest rate swap contract $ (45,909) Interest expense $ 6,167

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 190,439	$ 162,215	$ 367,615	$ 316,402
Platform Solutions
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	172,052	147,148	333,671	287,765
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenue	$ 18,387	$ 15,067	$ 33,944	$ 28,637

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred contract asset	$ 92.8	$ 92.8	$ 63
Deferred revenue	22.8	22.8	22.3
Contract with customer, assets, net	11.6	11.6	11.4
Deferred revenue, revenue recognized	5.8	15.9
Deferred commissions	21	21	18.9
Accounts receivable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred contract asset	69.5	69.5	40.2
Prepaid expenses and other current assets
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred contract asset	8.9	8.9	7.6
Other assets
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Deferred contract asset	$ 14.4	$ 14.4	$ 15.2

NET INCOME PER SHARE - Narrativ

NET INCOME PER SHARE - Narrative (Details) - shares	Jun. 30, 2021	Dec. 31, 2020	Jun. 05, 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)	750,000,000	750,000,000	13,335,430

NET INCOME PER SHARE- Reconcili

NET INCOME PER SHARE- Reconciliation of Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Basic
Net income	$ 9,580	$ 9,156	$ 2,025	$ (1,683)	$ 18,736	$ 342
Undistributed earnings allocated to participating securities	(247)		(61)		(494)	(11)
Net income attributable to common stockholders—basic	$ 9,333		$ 1,964		$ 18,242	$ 331
Weighted average shares used in computing net income per share attributable to common stockholders - basic (in shares)	150,690		149,517		150,498	149,350
Net income (loss) per share attributable to common stockholders - basic (in dollars per share)	$ 0.06		$ 0.01		$ 0.12	$ 0
Diluted
Net income attributable to common stockholders—diluted	$ 9,333		$ 1,964		$ 18,242	$ 331
Number of shared used for basic EPS calculation (in shares)	150,690		149,517		150,498	149,350
Effect of dilutive securities (in shares)	75		168		160	171
Weighted average shares used in computing net income (loss) per share attributable to common stockholders - diluted (in shares)	150,765		149,685		150,658	149,521
Net income (loss) per share attributable to common stockholders - diluted (in dollars per share)	$ 0.06		$ 0.01		$ 0.12	$ 0

LEASES - Narrative (Details)

LEASES - Narrative (Details)	Jun. 30, 2021USD ($)
Lessee, Lease, Description [Line Items]
Finance lease, right-of-use asset	$ 21,300,000
Secured Debt | Morgan Stanley Senior Funding, Inc.
Lessee, Lease, Description [Line Items]
Face amount	100,000,000
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	12 years

LEASES - Components of Lease Ex

LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Finance lease cost
Amortization of right-of-use assets	$ 937	$ 1,261	$ 1,874	$ 1,753
Interest on lease liabilities	208	274	427	381
Operating lease cost	2,216	2,545	4,430	5,263
Variable lease cost	255	373	603	776
Sublease income	(131)	(213)	(344)	(344)
Total lease cost	$ 3,485	$ 4,240	$ 6,990	$ 7,829

LEASES - Other Information Rela

LEASES - Other Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 3,293	$ 5,075
Operating cash flows for financing leases	430	472
Financing cash flows for financing leases	2,414	1,331
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	676	(8,017)
Finance leases	$ 0	$ 10,785
Weighted average remaining lease term, operating lease	4 years
Weighted average remaining lease term, financing lease	8 years		8 years
Weighted average discount rate, operating leases	4.10%		4.10%
Weighted average discount rate, financing leases	3.00%		3.00%

DEBT - Narrative (Details)

DEBT - Narrative (Details) - USD ($)	Feb. 11, 2020	Jun. 30, 2021	Jun. 30, 2021	Apr. 02, 2018
Line of Credit | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			2.75%
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%)	(0.25%)
Interest rate, stated percentage	3.00%	2.75%	2.75%
Morgan Stanley Senior Funding, Inc. | Secured Debt
Debt Instrument [Line Items]
Face amount		$ 100,000,000	$ 100,000,000
Morgan Stanley Senior Funding, Inc. | Secured Debt | Line of Credit
Debt Instrument [Line Items]
Face amount		1,000,000	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		99,000,000	99,000,000
Morgan Stanley Senior Funding, Inc. | Secured Debt | Letter of Credit
Debt Instrument [Line Items]
Face amount		$ 1,000,000	$ 1,000,000

DEBT - Schedule of Debt (Detail

DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Less: current portion	$ 9,800	$ 9,800
Non-current Credit Facilities	874,918	877,574
Morgan Stanley Senior Funding, Inc. | 2018 Term Facility
Line of Credit Facility [Line Items]
2018 Term Facility	884,718	887,374
Unamortized loan commitment and origination fees and unamortized discounts or premiums	$ 18,300	$ 20,600

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Hierarchy (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other Current Liabilities / Other Liabilities:
Total	$ (28,618)	$ (44,440)
Money market funds
Cash equivalents:
Money market funds	42,098	42,096
Level 1
Other Current Liabilities / Other Liabilities:
Total	42,098	42,096
Level 1 | Money market funds
Cash equivalents:
Money market funds	42,098	42,096
Level 2
Other Current Liabilities / Other Liabilities:
Total	(54,533)	(70,353)
Level 2 | Money market funds
Cash equivalents:
Money market funds	0	0
Level 3
Other Current Liabilities / Other Liabilities:
Total	(16,183)	(16,183)
Level 3 | Money market funds
Cash equivalents:
Money market funds	0	0
Other current liabilities | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	(14,810)	(14,810)
Other current liabilities | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	(18,723)	(18,694)
Other current liabilities | Level 1 | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	0	0
Other current liabilities | Level 1 | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	0	0
Other current liabilities | Level 2 | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	0	0
Other current liabilities | Level 2 | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	(18,723)	(18,694)
Other current liabilities | Level 3 | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	(14,810)	(14,810)
Other current liabilities | Level 3 | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	0	0
Other liabilities | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	(1,373)	(1,373)
Other liabilities | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	(35,810)	(51,659)
Other liabilities | Level 1 | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	0	0
Other liabilities | Level 1 | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	0	0
Other liabilities | Level 2 | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	0	0
Other liabilities | Level 2 | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	(35,810)	(51,659)
Other liabilities | Level 3 | Contingent consideration
Other Current Liabilities / Other Liabilities:
Contingent consideration	(1,373)	(1,373)
Other liabilities | Level 3 | Interest rate swaps
Other Current Liabilities / Other Liabilities:
Interest rate swaps	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Inputs (Level 3) (Details) - Level 3 - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Fair Value Measurements Using Unobservable Inputs (Level 3)
Balance, beginning of period	$ (16,183)	$ (16,790)
Fair value adjustment (recognized in general and administrative expenses)	0	(2,967)
Accretion expense (recognized in general and administrative expenses)	0	(109)
Settlement of liability	0	3,683
Total	$ (16,183)	$ (16,183)

FAIR VALUE MEASUREMENTS - Debt

FAIR VALUE MEASUREMENTS - Debt (Details) $ in Thousands	Jun. 30, 2021USD ($)
Fair Value Disclosures [Abstract]
Carrying value	$ 884,718
Fair value	$ 878,083

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions	Jun. 30, 2021USD ($)	Jun. 30, 2018swap
Derivatives, Fair Value [Line Items]
Net amount of accumulated other comprehensive loss expected to be reclassified to interest expense	$ 18.8
Interest rate swaps
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 contract - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Liability [Abstract]
Gain (Loss) recognized in OCI	$ (2,831)	$ (8,194)	$ 6,384	$ (45,909)
Interest expense
Derivative Liability [Abstract]
(Gain) Loss reclassified from OCI	$ 4,770	$ 4,040	$ 9,449	$ 6,167

Uncategorized Items - inov-2021

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]