INOV - Earnings call transcript Q1 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Inovalon First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. And now I'll turn the conference over to your host, Kim Collins. begin. Please

Kim Collins

of page is here welcome our Vice be Dunleavy, Officer. the today Executive and This at of Inovalon's I'd replay a Collins, of Jonathan Officer I'm XXXX call will and Inovalon. first with Chairman like Kim to evening. Chief President Senior Inovalon's earnings release on The Communications press on Chief Boldt, Good Inovalon's Board; and you Financial the Dr. our this financial Relations afternoon, shortly, to available Investor posted announcing results quarter call. was website. distributed Keith today's

not those Securities you statements updated initial position, this results the Act call. that to objectives materially. under Reform of of rebroadcast call subsequent differ Those as statements I'll the you made forward-looking earnings remind characterized for business future strategy remind including be remarks this will we cause our operations or herein Private of during call, XX, be For the April growth and of could a results may of plans, made to actual of operations. that listening XXXX, and as certain factors you number involve today, market this and to future our Litigation and to statements related that financial XXXX,

this our SEC. Additional which IR section and information call presentation, the to on release website. an the In concerning by to conference with these accompanied factors filings effort investors, is additional contained available earnings in the of webcast and company's is a provide is information

prepared with presentation this to remarks. copy along encouraged You're a to download our of follow

measures. Our presentation financial certain also includes non-GAAP

company's end earnings on at and release reconciliation definitions find non-GAAP the of the company's You'll the of and charts these website. measures

to Now turn over Dr. my it pleasure Keith Dunleavy. the to is call

Keith Dunleavy

and everyone, for Good our you Thank you, joining call. evening, thank Kim.

and of Inovalon focused. want the we are privilege that are mission bringing proud marketplace team the be is what associates I today. to resilient, company, work I value serve. Across that I have And couldn't saying a the how of it start more much of with impact are the to we by First, and to they the energized, the and achieving clients executing,

and XXXX strong, sales board. across quarter were data well the and strong. foundation progressed a of witnessed new many execution, with associated projects great product enabling strength progressed speak schedule. to forward are and the the The a strong results demand respective strong initiatives and development, impressive maintaining many reliability. was departments with and of innovation efficiency Implementations Market And well. company key put, the and first teamwork Simply cloud for The it themselves. engineering move projects the technology advancements new and that and company's was of growth quarter on

of this high exceeded revenue quarter's we increasing million. year-over-year to $XXX.X provided year, end the earlier first The XX% that guidance

New sales XX% year-over-year. million, annual contract value, or up ACV was $XX.X

the new eight-year one world's Foundation, Inovalon was sales client units. report pleased new SaaS quarter, provider to strong to platform the the relationships that reflected additions sales, new logo States logo expansions Healthcare very and AIDS year-over-year. was even services, all million, list. sales medical sales performance of of ACV substantive after HIV/AIDS hundreds suggesting up Of as Excluding engagements both strong on of largest the pharmacies XX totaled to an of the the across quarter Strong XXX% existing as note, in with current is the engagement seen successive including our in cloud well healthy, Strength largest of I'm quarters sales new during business platform pipeline continued care. Reflecting United company's additions proud $XX.X specialty ahead. secure

a initial us so proud engagement such to where an the was really to AHF and by important selected such for moment a organization platform at impact our For of for us. is as be mission-driven Inovalon, duration Inovalon of

to proudly industry-leading XX quarter, global the of several client biopharmaceutical from its during of previously is XX list, added top up achieving the companies, the now Inovalon which XX. the reported Additionally, XX organizations counting mark all of

technology-driven during installed an client relationships XX of top We from relationships the top with also previously pharmacies client existing announced number we ranks, plan, increased expanded national has of base the quarter. business now extensive of of health the example to for number leading XX of of of reported fifth its since our supported provider which place Humana, a clients, XXXX, these XX with is Inovalon's undertaken Inovalon as known counting And XX such up innovation on with specialty the of the with commitment its consumer-focused reported XX. leading now was Humana. seven impact by the value vaccine the from of top the on ONE previously One program. inclusion we the the contract counting of million. already growing platform five clients Inovalon adherence expansion XX, driven up our the expansion support existing Reflecting XX in of logos, within expansion March

many are our dynamic with seeing of clients. We this

are of successful demonstrates contracting the to of grow, additional Inovalon's platform. the implementations populations platform, the the sales their As platform underway. using too for which strong value, platform are expanding our pipeline capabilities so A does and they for clients use expanding continue

further adding we platform quarter, that well compounding revenue achieving. progressed the are such to subscription-based implementations the During

across SaaS of we with the network of quarter implementation of is capacity adoption platform ONE of to Inovalon's Additionally, expanding industry-leading effect noteworthy the focus implementations marketplace. increasing network multiple empowering the company's Inovalon during is of segments thereby the continue the clients the on a platform time engagements. implementations the goal shortening cloud-based accelerate lines, increasingly processes solutions, Inovalon platform, broadening Also automating to new of with further

is engaged Platform custom configured ecosystem. as both the As thrive as Examples DataStream in and connected which bring able Health such matrix care offerings implementations health and the solutions Vaccine number of the Gateway, Inovalon Adherence across multiparty clients and clients. to large-scale well drive with interconnectivity value platform parts and increasingly for which different of include from place the to unique the the operating market each of of require Inovalon's increases, announced Consumer from applications, as benefit growing marketplace and API engagements

that together purchased received This data unable the applications, types protocols as cohort many support, matching dynamic such a and of second-hand data, as the highest reliably data, studies, service, most is linked value is the in where growing patient-specific probabilistic clinical analysis, the of the applications and and data and convey critical to commercialization decision techniques. longitudinally within increasing have identified, that consumerism inform useful through is degree it to to different possess organizations and for while amounts our but of source patient-specific a significance data advertised and trend de-identified initiatives market and completeness is deep for data tremendous data is of by value organizations current, downstream in glued needed. fashion data, doing they and that and of unique market's current customers, Inovalon's is when significant the marketplace, primary assets patients. appreciation Another which members enable they real-world their both data within clients are care is

authorized of or inform data our for machine analytical learning individual and allows to industry-leading design, any platform are application, validate artificial and inform seeing research. advanced mobile real-time, data. algorithmic From Our capabilities in and patient-specific intelligence test advanced data calls nature you for highly inform, us the

is The achievement. client leadership our challenges, delivering are across stream impact on populations. uses. a and increasingly data conducted driving you through with partnership yet announced our value healthcare all in XX, March we come. seeing spanning analytical multiple major high-impact which service being the And to in capabilities, data our industry are patient-specific capabilities for built application API data healthcare And as differentiation is As of clients coverage the demonstrating best real-time and is significant Inovalon purpose

on The environmental, environment. that benefits enable social as download before as detail. Lastly, call ESG our the proud is as member Jonathan? visit to efficient more which the company, this turn Corporate healthcare more And mission our in and to the our of at these that, and to Company-wide, report you as priorities. a call with Jonathan, and progress are a XXXX a Report, highlights report society individuals, society to compliment ecosystem also annual allow important community CFO, of work topics. a company's we, our Sustainability please website guidance to Boldt, and over the of Inovalon hand us includes all to Jonathan governance, me Inaugural and the a in I XXXX our financials encourage over whole to I walk a company's would through like to the and

Jonathan Boldt

evening, and Thank good everyone. you, Keith,

a let building Now remarks. Keith's on points key opening me highlight few

growing revenue XX% exceeded Inovalon’s expectations our First, our range quarter with performance guidance year-over-year. and quarterly revenue first exceeding

to services continue XXX% strong our Second, new an for XX% demand ACV increase an sales execute driving in and and of a teams new increase our of sales platform sales well, platform ACV, excluding year-over-year, there in year-over-year. is

on of performance, innovation Third, full further accelerate payback and and based returns driving strong growth we growth, our very first XX% revenue fourth, year to to guidance periods. investments positive sales we which are to in And XX% to XXXX and increasing are our year-over-year. quarter make of continued investing our areas delivery, marketing, all

turning our results. to Now quarter first

continued last First and of over increase customer million subscription-based from an increase adoption primarily XX% quarter platform $XX XXXX fueled was This year-over-year. organic the by increase an offerings. million, revenue new of months was $XXX.X or the wins XX

in was new as of Legacy during remaining revenue represented revenue quarter first platform $X.X XXXX. at increase to of first the Services XXXX increase an came an quarter was of of XX% period first X% Inovalon’s and million, compared year $XXX $XX.X increase quarter revenue X% first ago million million an of and subscription-based in revenue. organic first equating quarter was ACV $XX.X the streams, revenue quarter our million on XX% expected. to contributed our in XX% XX% the Focusing the million, quarter of in or from year-over-year $XXX.X year-over-year. the the revenue sales and

$XX.X sales expand New million team success while sales was the excluding XXX% even to the in or continued after pipeline platform year-over-year sales the services an increase overall ACV of quarter.

to Turning margin. gross

year strong XXX margin to increased compared gross XXXX ago margin Sales percentage marketing revenue of Sales quarter XX% first XX.X% points for in was in the first increase spends $XX.X and as period. year-over-year. to a $X.X a was compared the XXXX. marketing as first in XX% First basis was quarter million to quarter XXXX quarter Gross of of the million, and XX.X%. of the an

engine Inovalon its driven at investment discussed the further strong its of on conference fourth end our XXXX data experiencing Inovalon’s we resumed marketing the we marketing expanded our end to platforms. As XXXX. technology XXX expanding are of sales At XXX the quarter of quarter call, the from sales and for QX, to team and in response and people demand fourth

or million representing $XX.X quarter year-over-year. margin of First of quarter compared XX% was EBITDA an XXXX XXX was $XX.X million, first an period. XX.X%, year the Adjusted to adjusted the increase points EBITDA increase for ago basis

to reflect industry profitability. Our profitability SaaS continues leading

non-GAAP XXXX XX% income of quarter $X.XX, to an increase QX per share was net XXXX. First compared

Turning flow $XX.X XXXX, cash million, million QX and In from to million as XXXX million, $XX.X to flow after associated of in increase XXXX. operating cash activities increased QX net XXX% the the QX free million incentive $XX Inovalon cash net in by provided operating the to period. in ago compared XXXX a negative or interest cash $X.X which an annual XXXX positive generated $XX.X QX is company's year payments. was of $XX.X payments with flow, after million outflows discretionary

and continues March of to and the cash balance fees, million. to was $XXX.X and debt as issuance Moving balance liquidity debt $XXX.X was million strong. be Inovalon’s Total was the outstanding net and XXXX equivalent million. of $XXX $XXX.X discounts sheet financing deferred Inovalon’s sheet, position was Reported million. position debt XX, cash net financial balance

ratio X.XX:Xat At to Our This XXXX, net our ratio our the of at X.XX:X. debt further to of leverage continued as reduced of XXXX. debt QX QX end agreement QX the end and within X.XX:X to defined XXXX, improve. end the compares

the our on debt end As in annual reduced XX rate expense million approximately its improved Inovalon’s our interest resulting by ratio the in was being XX% fixed. rate payment of X.XX%, of a $X is average interest savings. principal QX result leverage which weighted points, XXXX, interest cash automatically basis of of At below X.XX:X,

company's the let to financial Now me sharing outlook. conclude by updates XXXX

raising on first are range our revenue quarter’s strength. guidance We based performance our

our rate revenue to contributing $XXX XX% year, total with we organic see $XXX of subscription-based the between full growth million, to platform revenue. ranging an For million representing of XX% offerings XXXX XX% now

XX% XX%; to flow We continue operating XX% non-GAAP strong of income EBITDA of net see cash strong provided growth to of to $XXX to by representing an adjusted XX%; growth XX%. are And $XXX we generation. our profitability range margin million cash reaffirming million, and and EBITDA adjusted net of activities

in XXXX, to per million $X.XX. we million year-over-year second of income $XXX EBITDA quarter net guidance of million share organic We to XX%, quarter rest of XX% cadence details $XXX views first encourage the ranges $XX release reflecting our non-GAAP on quarterly the you million to the growth for adjusted earnings of to refer are today. providing more to and on based $X.XX of and our guidance for For $XX supplemental diluted and of revenue, to our year XXXX today’s revenue deck

Before going to reemphasize to like Q&A, Keith’s I’d comments.

strong, above first the for in First, expectations coming Inovalon’s quarter. our was performance

continued sales Second, demand significant we with strong seeing and sales new a for are platform our robust pipeline.

further marketing, that, our seeing of a call online delivery data planned, our fifth, come appreciation resulting innovation implementations compounding marketplace. prior And showing sales our analytic to growth. With the are our let the across operator investments Fourth, capabilities increasing are and subscription-based the and to for a growth, in session. continue results. me Third, differentiation conduct we the rising back in sales turn over as accelerating of our and to Q&A strong our

Operator

Thank the Citi. of comes question Grosslight you. line Daniel [Operator of Our first from Instructions]

Your open. line is

Daniel Grosslight

the guys, the a rules product started quarter. the the thanks for now on been there. has API question bit Hey come taking payer what that the into wanted dig interoperability congrats into to and consumer Curious effect. adoption to I have

market that do adopt CMS can million. you cost around will I that capture? much eventually payers these How think think of noted have previously, you $X around XXX-or-so APIs to

Keith Dunleavy

the of already us our payer see of the many as significantly That the the platforms market because Hey those that good number question. that connectivity subscription-based with and provides is evening. time and scale That out for in space, highlights thanks great today we upside of playing and opportunity for reasons, payer Thanks on volume-based how as nicely. obviously customer a clients it and interesting taking how we approach join to Dan, capabilities market for in a they us what We’ve base. space to API really there’s serve have the for have well – for platform. the capture number ultimately space, the relationships is and most a We’ll an as captured to. have wait our a that we approach, we Inovalon

to ultimately to API about capture, want don’t I So as capability is pleased with of we’re percentage the make our will company. the total any and marketplace but guesses what progress excited overall what for the

Daniel Grosslight

just maybe And on follow-up legacy you. the Got one revenue.

for we Should was that the it seems Or services be but legacy building of at by depressed same as increases the think legacy of the levels. back, services, remains I come about whereas has be like the most impacted we we kind rest at lap thinking probably quantum COVID? the COVID should sequential in along quarter?

Keith Dunleavy

migrating you would XXXX the guidance, COVID. at might much maintained that presumption first most as And COVID some approach the the Dan. want question, a on a percentage then second going second take the persist recovery basis and little to do right see for opportunity as half. ultimately half into you’re least very a you by of a that? solution clients that up roughly therefore, we of trend for out. the to John, recall, to bit that great a Great it was play customers expand and legacy make where a that experience you during platforms Certainly, that’s now think COVID business a the the more of going learned cloud-based to the absolutely are cloud impacted the we is in year, on of of of wanting Obviously, half it is how forward, great But year lot conservative with legacy remaining our portion our to in us.

Jonathan Boldt

Hi for question. thanks Yes. the Daniel

expect first some half. to back continue then And revenue. the half to trend We and as at to normal still in legacy the see year, through look X% we COVID continuing second overhang of

Daniel Grosslight

it. Thanks, Got guys.

Keith Dunleavy

Thanks, Dan.

Operator

you. Thank

from next Our KeyBanc. comes Donald question of Hooker

question Your please.

Donald Hooker

afternoon. Good Great.

too trying to I here, myself the before ACV I’m of statistics talk down. get I’m of, sort to trying sort And fantastic. look So enthusiastic

before So I’m any set do now? forward the of mass but coming sort and skis was demand? Or Or our think comments demand, broad of kind year the held your anything over metric through, there get is – here, you of mean, due back? demand, of of people ACV your of pent-up there maybe it we pent-up and thinking are prepared sort about how any over looking was we looking that sort in just off cadence that past mentioned there you I seemed a like in based

Keith Dunleavy

Hey they who team the fantastic, too, is the implementation progressing. Thanks our question. certainly, Don, really and support, they’re business for and lot the of experience right which spot the fantastic just marketplace now. our putting for puck the folks for thanks to technologies, units, buy of this are we’re a Look, operations there excites is joining a into of innovations get with And puck are credit to capabilities that us. the fantastic and the so building our engineering the stuff teams not where customer services the all across sales more. be, how we’re where in client the and the out doing going to is and client we’re total achieving right But

still certainly, they quite is in nice, our of quite here see quarters of sales. remarks, pretty sales So seen And progressing. really all mentioned to that pipeline in nice we’ve driving continue and we few QX’s while our And were a strong prepared that we as opportunity nicely. strength numbers,

in no seeing. what pent-up demand we’re So

of delivering team executing company for building seeing relationships capabilities the and strength that and that’s of and just on the demand. building appreciation continued We’re a

Donald Hooker

if I now ACV of compare follow-up is kind is using ago? as a reason any of growth there metric ago might went years year terms this in Is kind two a indicator it difference? year of of conversion be any that to different the of leading there I any of, Maybe prior off versus my Okay. that year data, or back guess, change and revenues. in revenue of ACV terms a think or And

Keith Dunleavy

the Don. or our client underlying vary different those time Well, also to recall, of pardon widely. a the as great the those that offering and for, you’ll going lines have Obviously, on has implementation individual the lines are time assigned is implementations, of engagements characteristics depending quite question, what me,

So I out, of I case. case that implementations mix every the such The that. But not a identical, off that say readily that and but going different and it’s it’s could we be models an product not quarter-to-quarter. identical translation quarter-to-quarter, wish in was the it offerings it quarter, and directionally, progression quite product the help could individual sold varies that’s so you you have all characteristic, the to revenue lines is exact of wouldn’t – that build is mathematically something of

Donald Hooker

Okay, thank you.

Operator

you. Thank

Davis SVB Our next Leerink. Stephanie question comes from of

Your line open. is

Joy Zhang

taking for for actually on question. Thank Hi, is Stephanie. my Joy this you

Keith Dunleavy

Joy. Hey,

Joy Zhang

So my first question is on the Vaccine Adherence programs.

on vaccination? You in-house data makes now payers differentiation just more quality the terms of in the is what your solution your it identifying mentioned of for And can you of the driven right uniqueness do what works on better contract your expansion, Or more algorithms? can Humana is by that sets? candidates expand than

Keith Dunleavy

Joy. question, the for Thanks

network benefit Vaccine It relationships cohort Inovalon. effect really the beyond exciting Adherence one of health demonstration of vertical ecosystem. quite So requires just platform the the of is care an

payers it, if think about you you have So involved.

administer producing to vaccines and Providers have be obviously to and patients involved. involved. You need them companies pharmaceutical have

sets in engagement to fact is, authorizations data and of and glue that marketplace. the and our and relationship data So all unparalleled that the rights knowledge, we together that have

compliance might of different there but So Who vaccine CDC right actually counter a out constituents, of cleanest can the All receive have and marketplace the apply third, in trivial have first is who once What set place with in have on it’s all that the ability vaccine. have the just a for the timing involved? to no also not be, type but should HHS data the of not what’s vaccine, and to that for to indication them the those the and doesn’t of task. strict engaged? who them the vaccines, questions gotten of or with dealing identify should the exists that analytics depending these second making vaccine sure requirements

great demonstration and and combined data a platforms the of it’s across contractual of marketplace. So the relationships power

Joy Zhang

side, it. what can within space would doing of And work sort that on to Got you’re are trials? clinical you the For evidence the want expansion Thanks. potential real-world that outcome-based expand the you. now? Thank contracting the to for market sciences market solution talk you beyond of areas example, life into

Keith Dunleavy

opportunity Sure, expansion. Joy. in as health data We certainly a see any makes for area where difference an care

for life So these things place the obviously, might and or the on to device of tries contracting, to medication the is understand post-market side of level the their these they of trying they’re increasingly better outcomes-based how them of consumer side, the selection also all for drug ideal are mentioned, to But testing, the pharmaceutical user can device vaccine adherence, to key or And consumer the uniquely. high-cost key right medications, get as device development, surveillance, better understand is development, you space space be. who sciences consumer pharmaceutical today, the space as tracking, quite key.

opportunity a sciences life CRO for ton call in throughout space. what we of So the would expansion

come for excited pretty that, that we’ll see and We’re forward. more going to of

Joy Zhang

That’s helpful. Thank you.

Operator

you. Thank

from of comes Ricky from question question comes next Stanley. Our Morgan Goldwasser

open. Your line is

Connor Light

for some Hey, on Ricky Light kind prepared automating functions for us the that in mentioned being a could Thanks. and is Can long-term? which your – expand you in implementation. automated near these initiatives the and how throughput bit remarks a increase for thanks. you of more maybe sense are This is Connor Keith, kick give of Inovalon Goldwasser.

Keith Dunleavy

Connor, for the Thanks, question. Sure.

through to platform CTO, that steps a fantastic go have fantastic in to full signature large we led take team going a on a the So Sharon, a implementation. and by take lot any that operation engineering from Jeff many there’s

decision they’re of of sure process things data elements also more and the are customer are types of administrative signed these key. is the prescriptions and make then completely on the them activity process be need the are that claims the sets of or making our their of specialty seamless within all quite work our automating individual connectivity and connected processing their marketplace, instance, parts That make cloud their the you of into platform connected handling to their systems of that encounter ecosystem or organizations the more And workflow, a these systems, up to pharmacy lot happen systems, with steps. platforms their automating all order their in see print up platform, management cycle of all our is Automating literally laboratory of on the their their disparate of ingestion pieces need for instance. the all their some activity cloud-based that operation setting inventory of connectivity, be for So for all are process even just that submission and systems the providers environment. support revenue systems, other distribution to you it’s

other up. customer at opportunity of fast in and connections to in market. us it All price in allows a a points like downstream larger different reach Connor, is need and allows and go upstream key in which these much also sizing to verticals, be us does, to can larger set the running. what get time the it larger And client how have we those accelerators are base up individual those Automating and and and things

Connor Light

And helpful. ACA Thanks. gears my Great. a Biden enrollment the follow-up, switching bit. That’s then And summer. opened through administrations maybe the really

think of with have process that with I kind your And enrollment embedded included it forward? these mentioned going on this. ongoing, benefit you any in do update you now last from the the call, is haven’t any trends, guidance you

Keith Dunleavy

ACA That open on incremental the still is business going tailwind platform. our support is still and We majority vast players in in It the forward. marketplace expanding. a the the positive obviously of

impact but expectations it, projections a set roll it So don’t been you numbers of the before give We’ve be that population the numbers know still to early final but any to watching of is the certainly is are. any kind we a the positive, what it want to and in, positive. would

Connor Light

you. Thank Great.

Keith Dunleavy

Connor. Thanks,

Operator

Thanks.

Our next Blair. question comes William from Ryan of Daniels

Your is line open.

Jared Haase

evening. Jonathan, think Haase Ryan. good Hey, is the Thanks for this for taking in I for is you. This Jared questions. maybe

mentioned I hires think sales some in new the you force.

versus mentioned, XXX if of I at QX. the I numbers correctly, now you the end have people think XXX

one, numbers guess, bit I correct. number bit then make composition about investments Keith, those or two, channel to hires, sure specific market just mentioned little if a talk you with have just focused standpoint. want those I an So any a the I Obviously, those? And end could implementation little you from you’re about of making

they’re around oriented that. maybe So more

us new Just any hires? more around flavor you could give those

Jonathan Boldt

for thanks question. Jared, the

of did QX numbers the First, end have end At XXX XXXX, you the sales yes, correct. QX the team at That XXXX. members. compare XXX to of we had and marketing

right there are question is any where within – now, verticals? not opportunity constrained. was, we second our concentration Your Jared, And

in We end continue providing. technology of to see very all we’re markets strong our for demand the

growth we our for we there’s to the a technology. pharmacy, But have demand of areas across focus, largest really strong one provider. Specifically, where and it’s all that continue because payer, sciences life is see continue finally, in our then specific see to

Jared Haase

I Got it. Yes, context And wanted that the in one, visibility guidance. just now makes sense. the just to relates to then another of and ask

like kind layering the know effect is absolute of the guidance. discussed the end of it as I Keith, of the looks look new terms prior range high same over in low from the And So outlook, you've future if periods. the sales I updated the end at

that about talked in You've the last couple quarters. of

you kind kind narrower, just of the timing just point of given be at related you So But I'm and point how guidance in uncertainty revenue of at there's that the characterize to flows the visibility just sit be year? that of through. bit why sort the answer where would this maybe kind range this may curious a all wouldn't fiscal how of

Keith Dunleavy

let Jared, I the I certainly, have don't point we've with time. the for year have think think had I range to at lot a wide pleased it's But it. don't a over mean, We're visibility. year. this it's in of we rollout. very consistent – we

And underpromise to have overdeliver. to the think is year. goal in it's bit regardless of we are Our prudent where range you of little and a

Jared Haase

I’ll Thanks. there. enough. leave Fair Okay. it

Keith Dunleavy

Jared. Thanks,

Operator

Thank you.

Our next question comes from Jessica Sandler. Tassan of Piper

Your line is open.

Jessica Tassan

Hi, quarter. thank my for and congratulations on taking question, you the

to XXth we clients you XX were of so quarter. signed the Top you the know, in interested think pharma that mentioned I the just

so, and So with shift can guys some you looked addition just pharma large just are understand advertising you And pharma, work? that to disturb? face-to-face from us of platform if benefiting in those do help And virtual? in consulting from you kind the of to how contracts the sales think

Keith Dunleavy

Hey, I new advancement adherence surveillance and of call. not increasingly, contracting a the and The now in real-world the joining principal changes during for historical of the thanks the value-based marketing sciences continues driver be a of evidence side. is our for vaccine life to unique driver appreciate It quarter. development seeing and Jessica, out it. the more not programs, and commercialization and post-market virtual marketing but revenue principally

Jessica Tassan

ask. follow-up And if and of it. I Got kind could

an a just us help platform, think ROI the solutions makes more sort effective down alternative. advantage? the than algorithm Does what competitive come higher for of set or can you pharma So data kind your the of like about when quantify or to you or they

Keith Dunleavy

enough, pieces primary and But interlaced connectivity. Sure. of competitive the platform in different that in of Most much longitudinally alternatives I the very with Jessica. data stress is few linked versus a differentiation marketplace. can't is advantages the the seeing is the obviously is machinery, adjacent then important to have The that other increasingly they're it are to the the capability importantly source source true data identified primary have how marketplace. of they data what

parts treatment device, $XXX,XXX going corners that can market. the or Certainly, life a some that you do it's is analysis well. of can providers major of a clinical we can $XX,XXX, actual That and the it. in else additional our payers the bring And specific with is you key. highly say, XXX then identification marketplace real-world science $XX,XXX client go increasingly there. has down the relationships appreciating or XX ability specific sciences The ecosystem, differentiated or that really quite the patient we together talk deliver to to in fact We the think that let's other unique sit provider value solution together. a company, that then right? as the highest profile has, is with to can stitch underappreciated and that's is is of different a have company base to nobody And the from life and the data on I then

oncology, by our heart combination. then at failure, the are marketplace specific you are that deck, depth that people other it's deeper supplemental in in Slide like of sets far. health like unique arthritis XX areas and So other rheumatoid I hope data look have Those areas And the high-value autoimmunes. care, like helps. in it's than that if

Jessica Tassan

Thank you.

Operator

Thank you.

Our BTIG. of David Larsen next from question comes

is Your line open.

David Larsen

around channel? some your specific each views with provide want that you don't Cardinal. those the Can might your Thank nature what Walgreens, sell color space you to quarter. the you of the most Good Yes. relationship in solutions if are on retail about deals, be? the around selling Maybe And just if too potential client, you. could get Walmart opportunity of and talk just sort and that obviously, well maybe pharmacy then in

Keith Dunleavy

David. Thanks,

of about those four required one each stick the what are partners, to of we've you and We named. announced corners we're super one to with each publicly obviously excited that

relationships. multiple fantastic engagements, individual not great most them only engagements, now expanding All them and engagements and of but all and importantly, really of positive

So differentiated, a in to the revenue at side a that of was retail. the first unique market. parts – lot on now expansion because expansion and specialty down on experience retail to was until able As your retailer fortunate environment The low-cost, the a fast. or the a the the only Inovalon, specialty deliver further strategies concept able of right? one it of and platform our of at the many ordinarily they low-margin, side of the were could reason be those achieving between high-cost, high-impact, question build side in to work. their course, other high-complexity, approaches honored was into things. is specialty table environment it of there boring a that place The between very because the and the cost their to that and high-margin value differentiators afford you We're cost was further low-impact is and of so existed side. were was necessary of came high on And And things bring reason line one on

and is you if the their about So so were their especially it, especially knowledgeable going going, knowledgeable who knowledgeable the prescribed that is how is, patient especially about liver function forth. clinical kidney about their provider function care,

have a You a patient point price or retail only a can organization, with with consumer, customer that higher you that could to that hope at client offering. much experience as deliver

We're going really changing a massive, opportunity. marketplace where we're obviously, there. the is massive to that So about excited go. And that's

David Larsen

is I grow the like your ACV, a in of you. reading thoughts – I guide normalized correctly, Okay. a that does just Like would growth, what year-over-year? say if that maybe Thank growth And long-term then just up more, at can, sort if expect XX% revenue basis? I of to then am please. mid-teens you one around the sort the on any ACV guess, And

Keith Dunleavy

and is things driving one we'll and seeing our going going be it greater But there's getting host marketplace at to what the the you're the becomes dollar, bring tomorrow additional and And team the sell. of up, to XX. press as returns I'll morning higher we're investing out increasingly of them we provide sales of in seasoned products and has actually on the the on Well, we're David, release on coming going performance Investor sales we're to teams. in again, increase we're of some with every is call what detail to investing products the have sophisticated, mention greater to increasingly an And continued a keep because in and May Day that obviously, and at. delivery we end into

still from normalized with a We're So seeing that a scenario excited up environment. right progress. calling we're sales our and quote until the we're far

seeing. tell pleased down year we're aren't can we're as maybe some ready sales what normalized with I you road, the call So what will certainly that be, now to we but

David Larsen

Okay. Congrats Thanks quarter. a a good on lot.

Keith Dunleavy

you. Thank

Operator

Thank you.

Our of from question Guggenheim. comes Santangelo next Glen

Your line open. is

Glen Santangelo

is I undermined bit Keith, value the we've last kind follow-up kind remarks, recent you right more Thanks of that Well, lot if momentum. in that we But may time some contribute ACV result. quarters, coming that things question, momentum. questions of to clear back go of a be just we I where now contracting the that some seen there around I that couple to we churn on for that of if a pretty at momentum. third contract a to volatility, back listened and year, the had quarter it to same we've the want to the are row together my think think prepared saw seems little a saw But a particularly taking in few quarters maybe

fully And Any you're so, maybe churn see way base I’d thoughts kind existing customer in revenue around is in appreciate. don't within might that that? the be that augmenting to of regard, a growth what your and actually curious there we less seeing that be

Keith Dunleavy

in lot a there. is there so Glen, Yes,

you're it. So hopefully down let me And knock pieces hit to. a what speaking different of few I

range many, for a recall. years, I'm variants off rate typical all, turn any many our client or going has typically not sure of is churn first which to seen rate what of retention you'll a churn XX% So, have we Historically been, our we have XX%.

client the want a your XX% nicer expand now some it's quite for But a for because buy dollar retention continue things higher and churn number clients we year number, last churn to have for So basis. seen abnormal if additional not math a rates. count or store. On on time a easy it's basis, use to you on

for well. those there and of in work, is into do seeing Look, the and is there great take you're sport for our are sales, obviously is but to that team, sales, we is there long together. we earlier, the can is great. I So a customers and to for and time that other as obviously is it it's get lot well. a There And you is parts as timeline that great place mentioned those all of as to there not done. work as implementations are prepared a maturation, quickly, known to the scheduled like each those it synchrony a got implement in these have strong. What stay innovation, enjoying feels team of different a and mentioned contractually are some ends machinery have ACB scheduled to can get all that them, you of the it when progressing have pieces time, something we've marketplace That's is we in really it's together coming we coming a support. here, done. this product there lot remarks, that we get executing others implementation, through see we're succeeding succeeding work And we sales those how progressing client continuing for together progress happens, and are layering, ourselves those hope obligated and quite all obviously all have we And to as meaning on it's our product

agree, great that convert referenced to that pipeline wanted do job doing, And also to quarters the strong we've numbers just we're of we you but after looking that's we message the I job. even we're have a as sales, So ACV well. into our what doing which pipeline got our

Glen Santangelo

Thanks. that's but this ask so sizable the great. follow-up, one again quick U.S. million saw I registry now greater just If than more That's think now patients, XXX you population. contains growth the I year,

about where to are. Thanks. XXXX? to reconcile to terms should flat that database? update any see So leverage that start the you international talked relative or registry consumer And opportunity the that to you are then being patients just want we I of that and try in into in now, we able of get opportunity that to to sort starting

Keith Dunleavy

question, a follow-up Well, Sure. Glen. there in for a there is lot

Glen Santangelo

Sorry about that.

Keith Dunleavy

all questions, questions. good good No,

So patients back quite the have does time, because died, have merely going it registry, some some square obviously more to it's right. who linked funded

valuable, of pharmaceutical industry, the of that did data device why the all the So patient industry were circumstances What right. – that real-world die? is frankly, very

registry squared the obviously more XXXX, data on XXXX, those patients frankly and they extremely died linked in and to stay XXXX, deep total very is So have step a XXXX, have have patients. may we valuable in that

the the were continued medical of that are climb it have can United States some and non Also United out a approach to Day, go should membership of reflection data talk here areas of lastly data year-over-year hospital, event count we whole medical talked correctly about, rate. growth not you've flattening, This today the population, U.S. expect, impact more number the you source. yes, a that what the the excitement. of more events greater if to to proxy seen Investor our what's certainly a that's one better population rightfully think of about the above you going the see of that climb question at be number the will data U.S. there I of the registry our to see look as And less they seeing the slower as why becomes point flows And you in would same able the this you U.S. elements this as citizens reflects, quarter, doctor. the data to current international to near at is but But the that's will curve grow to as squared go our States, point. which the rate obviously a So that is the forward COVID, as right at where we'll medical locations continue you interestingly of the in then dataset dataset, in of your in is you're going from event reside it during as there, you expand, people

Glen Santangelo

Okay. Thanks for all comments. the

Keith Dunleavy

Absolutely. Glen.

Keith Dunleavy

I'd us for joining evening. with like that, to everybody And this thank really

on wrap a points. I reiterate touch few to like I'd up, and Before

see hope First new of you with significant for strong demand robust sales platform really continued I as and seeing, all, our we're sales pipeline.

deepening that as online now resulting for time. of speaking compounding the layering based continue subscription implementations a in of planned some in come Second to an we've been growth

Third, we're marketplace the appreciation the it data can better analytical the differentiation that of seeing they value impact for capabilities across a delivers. the our as and understand rising

our investments our marketing are the really and increasing and nice, in sales Forth, they in our showing innovation, results. growth, further strong and accelerating delivery

strong we ahead ahead. So and see simply we're – years and a executing put well, strong year

announcement Now by, taking an for interest all our which I with with of on us morning to Day, in Investor Inovalon. this. thanks earlier for you evening And inviting you'll that, out will I'll be tomorrow and you all XXXX your see May XX, that, this close mentioned thank night. time on join as to Good

Operator

This disconnect. concludes you participating, now today's conference call. Thank you may for

Inovalon (INOV) 29 Apr 212021 Q1 Earnings call transcript