INOV - Earnings call transcript Q2 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Inovalon Second Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. And now, I'll turn the conference over to your host, Kim Collins. Please begin.

Kim Collins

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

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

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

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

Our measures. presentation also certain includes non-GAAP financial

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

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

Dr. Keith Dunleavy

deliver second the results call. industry-leading thank having profitability. demonstrated and success board exceeded revenue we continuing Once everyone, our evening, again, for you Good to across while Kim. joining growth you, accelerating the SaaS are and expectations our quarter our Thank

versus care in the marketplace. year-over-year breadth acceleration look serving continue This in Inovalon XXXX, the exceeding for organic care health Inovalon's results once market demand, increasing implementations reflects our sales, an top revenue a of If growth, of again enablement sequentially. and Strength the specifically initiatives growth. across and second ever-increasing which reveals contributed XX% $XXX.X across see acceleration, strong at end we million achieving X% growth the in as year continued even growing the care We revenue line ecosystem, execution the which period. ago quarter platform to above XX% an it health further XX% top the layer an to million, leadership or revenue quarter's guidance revenue, a stronger first of health year-over-year in data-driven rate ONE achieved drive resulted the reflecting demonstrated of original XX% in This again of Platform to of $XXX.X rate acceleration. growth total our growth

value, and with SaaS annual broadening are same platform Second $XX.X was its across of expansion totaled metrics in or contributing industry-leading million, services, wins the ACV, last excluding segments new in quarter compared the sales and driven being marketplace, million. ACV record of new levels $XX.X the ACV, to this by multiple strong platform contract cloud-based the year, period solutions adoption continued sales Both to company's Inovalon's business. marquee subscription-based

seeing the continued the quarter. each very to experience with as focus all of where yield units, across list. unmatched hundreds in in value both of of Platform but opportunity during a company's solutions also Strength Inovalon sales multiple well relationships the existing pipeline logo quarter expansions not the closures to total only Solid on an the as Inovalon's levels of XXX Simultaneously, or reflected executing ONE new deal seen impact record record strong be quarters customer the performance sales combination quarter very continue engagements, successive including and in despite to strong investments strong delivering well, substantive is benefits increasing additions business

Inovalon period, the continued and in renewal increases durations strong see expansions. During rates, contract contract to extended and contract retention

realize extension of is also of continuing June substantive with advance the X contracts to This In leading with Inovalon and demonstrated announced on XXXX of greater, Walmart, was their well addition Inovalon Inovalon's and or which existing its XX, duration the considerable with relationships of of relationship years into extension expanded contracts retailers, as of world's expiration. new expansion realizing to in clearly one XXXX. extended the

more otherwise The second combination and access to registry, the XXX across continued a added EHRs set, connectivity climbed primary expansion the interoperability analyses, its to billion company unique million within addressable architecture XXX,XXX May use applying of quarter real-time across ecosystem The increasing patients. health Concurrently, quarter, total data disparate allows operations squared cases also number of reflected the Inovalon during capabilities XX, resources these treatment. than and system platform, data source the providers for data accessing During research, of data and longitudinally awarded data resources, of on proprietary care was patent XX and Inovalon's access matched and connectivity. key more additional to than that with and medical more design of for health analysis technology the than events real-time care Inovalon's XXXX. more a

patient-specific the this for method providing systems analysis data XX, Patent We May for Specifically, on real-time on-demand XX,XXX,XXX platform. No. computing XXXX. U.S. announced and

the additional a be the proprietary operator, global a giant the can like written moved an mobile and a of ability XX The years what spending patient's additional and they payment leading could this it. of it agency EASE or already business. technology EHR colleagues the tablet, doctors' applications known representing managed a data phone their Through to technology, our DataStream next hospice seconds. is and recently software and mobile Inovalon back resides. use data, increasingly home or might analysis what all minute blood data-driven and where for and single-source, there course patient ONE or highlight prevent management normalize think like increased the customer's to months provider like leveraging availability. and than nation's like I offer strong an deliver more one Available be recognized for multiyear units the provider person's This could many data where plan laboratories, past to just of systems apply is proprietary pressure showing would results Inovalon a as real-time industry's many that Inovalon, In spread multiple hospitals, diabetes doctors Care, to integrated a most as their different claim team. stories case, the industry, processes. API can All-Payer successful the the ours the and regardless advanced ScriptMed Well, intelligence and receivables XXXX, data data across request and Service health hospital be and technology business module and the from within likelihood of XX% to and a Inovalon's home the to unique worth what the applications, for to to company such requiring what care app to success our value a a laboratory engine over flexible each data, customers, payers efficiencies Homebase X data AI, as whether complex, data be is the held specific all best across the platform appreciates or API data it. like answer within or and combine are fire-enabled an is health analytics claims request make all requested and of tests revenue one providers that is administrative of is this entire the sets platform our worsen as and be the continued Cloud and receive On longitudinally to market the different all and Link integrity reception a the match the innovation pharmacies, the as offices respond years clinical Data by has cycle API process known cloud-based on analytics health exclusively across and advanced or manage Exemplifying routing data XX, the over as accuracy XX call by greater to by accuracy I'd fully-integrated applications enterprise offering with case a patient transform sophisticated data Platform providers of are the being and as known marketplace geographies, or person's systems efficiently June of employers, Inovalon's the application, the our data, will across highly within pertaining leadership engine, commercial broad many data and by data, on workflow within marketplace a connectivity third-party which first seconds. agreement apply one locations referred authorized announced thousands empower application encounter that analyses this simple, the a to in to combines to All-Payer a from Medicare platform. EASE Home of EMR and and quarter, authorized the

The but care, to Kelly, as only as to technology in a moment focus in reflects more brings and impact growth group not a and on joining place executive where previously every to software the than Eron Inovalon meaningful executive is also years experience a President, data-driven people Each at leadership, Microsoft. Amazon leader increasing cloud Lastly, strength being XX, talent welcome industry-leading as I'd seasoned and caliber announced of matter, Corporate tremendous take leadership recognized mission increasingly Inovalon. of in a place and June company's technology great a cloud-based work. XXXX. and like global and the leader new day, health Eron software a Eron XX and of engineering Inovalon's

our the the for of the ahead. the of and great to demand individuals our continued market's which enthusiasm growth to opportunity for excitement years vast fuel capabilities, many strong every and are so all front solid demonstration honored of have increasing millions our our second continues was summary, and execution quarter success, in quarters sales the day. of We outstanding us, they serve still to another customers and meaningful performance, team's empower opportunity In

financials Before not had differentiation Jon, anyone the Investor XXXX company's highlighted to view I to the the on on like me allow Boldt, to with to please event guidance and virtually do our more people, technology, held hand continues was Relations May Investor which CFO, available over that, to call walk our long-term be XXXX, The our through And to website I'd to Inovalon's in also replay the and Day, and chance Jonathan who to encourage so. turn growth for the opportunity over call yet in Jon? has detail. XX, section.

Jonathan Boldt

good to Thank building you, opening points like a and highlighting key evening, by begin few remarks. I'd Keith, on everyone. Keith's

First, range, growing the guidance Inovalon's of expectations performance our with quarter XX% year-over-year sequentially. once again exceeded high our total end revenue X% revenue exceeding quarterly second and

which product have very XXXX to sum and our and pleased third, we growth, once Second, and returns guidance periods. positive areas increasing accelerate of strong the full based investments revenue performance, second strategic XX% marketing, to we XX% driving are been and undertaking our XXXX very of delivery, innovation again and in here the are investing further year-over-year; quarter year with payback sales to in we on are our growth

turning Now, our second quarter to results.

last million, Second and primarily first customer increase subscription-based X% the increase, offerings adoption quarter year-over-year from growth XXXX both and new of new XX% platform wins and $XXX.X continued This the XX% by sequentially. year-over-year XX in was growing was from existing fueled accelerating customers. the an increase quarter from months over revenue a

and compared in XX% for XX% sequentially. in increase the the from the Services revenue ago our the million, from second sales $XX.X million XX% growth XX% an in platform quarter accelerating in represents the first $X.X to quarter of total quarter million equated Trailing year ACVs the to of new XXXX. of X% year-over-year, services, $XXX.X Inovalon's totaled million platform excluding platform quarter This revenue. was revenue. as contributed quarter on $XX.X revenue our XX% second second subscription-based Subscription-based and sales percentage XX-month new revenue quarter expected. was an second year-over-year was period growth of streams, of represented the remaining XXXX organic and XX% Legacy year-over-year. growing and representing $XX.X the Focusing ACV million, second totaled sales revenue million. new $XXX.X million $XXX.X of platform increase ACV, was to revenue

ACV of compared marketplace, with the both segments multiple cloud-based earlier, SaaS to across same strong metrics come. contributing to and in XXXX levels As we industry marquee of deal last year, record Inovalon's in continued the strong adoption Keith its company's period included leaders Despite solutions continue mentioned quarter. levels opportunity in broadening are which for business closures, in the record quarters the see successive subscription-based to and platform expansion of sales years to the pipeline

margin. Turning to gross

at quarter $XX.X Sales connectivity marketplace into and of technology Second revenue reflect for marketing to XX.X%, gross delivery second and period. was year-ago the million, and Sales increasing X.X% quarter in XXXX a were in $X.X XXXX margins our the acceleration. strong of additional of was an marketing the second as quarter investments increase million and expense year-over-year. XX.X% percentage as compared the

to the marketing its ONE drive organic further market continues increasing demand invest Given to the Platform, acceleration. engine Inovalon's in opportunity and large revenue and company for sales market Inovalon growth

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

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

industry-leading Our profitability SaaS continues to profitability. reflect

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

an cash flow. was net XXXX $XX after operating the of million. our cash payments payments ONE driven capital flow of as new in XXXX Net quarter by free deployments provided million, cash spend receivable to tax our million, increased $XX and success. revenue capital decreased the the $XX.X of ago account driven Inovalon $XX.X growth; flow interest million, activities period, which we Turning from cash and is continue second Platform's by ACV of primarily year sales QX uses capability cash finally, by accelerate investment working and driving to operating

associated million company the federal net carryback a Act. of income continues approximately Additionally, XXXX to benefits with operating to loss receivable relating net tax expect the $XX CARES

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

debt of At the at Our was of defined end second net of quarter to weighted XXXX. Inovalon's end our continues of of the of our X.XX:X the the the quarter rate to XXXX first average X.XX:X. and XX% its XXXX, QX debt of which interest end end fixed. of principal debt on second leverage XXXX, as to further reduced the improve. This the X.XX:X within ratio compares ratio, the at agreement, quarter At is X.XX%,

Now, company's guidance based raising financial quarter the Once range performance. let outlook. are me our our conclude by revenue strong XXXX second sharing again, we on updates to

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

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

to and new accelerate schedules. expenditures as guidance product platform to are million, functionality raising our million $X release we capital continue million we $XX by Additionally, to $XX our

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

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

above the performance First, our coming for consecutive in Inovalon's strong, quarter. second expectations was

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

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

Operator

Our Sandy Draper of comes from first Truist Instructions] the question [Operator Securities. line of

SandyDraper

on highlighted there sort another guidance, good this about quarter. raised of that the up you reinvest Congratulations that's Or investing strong EBITDA think okay, on the guess continued areas new going maintaining going quarter, the new question, are we be think the basically, When something just it. had revenue any when another think Or that you're guidance and I we're to you there in? came first you is quarter? -- about over really to I Jonathan, going is investments.

Dr. Keith Dunleavy

the Sandy, thanks for question.

you want go if acquisition as out rest Inovalon as topic Bloomberg all on that say QX of here, came answering of that I that And clear much outlook be first make to to we be kindly and the topic, have we market we'd but the we be of the not to company's want potential of like I questions convey very could to on go the your to on any mentioning and before by our performance, through late of commenting kept will therefore, I are Monday Before that not such just And sure we or will a corporate it's company Sandy, -- and question, speculation. questions reports I aware the as policy, rumors just the matter evening. done Q&A, matters.

So Sandy, question, to you. thank your

capabilities. are us continue is marketing, our our and technology greater the tremendous asks to number fantastic in of innovation sales, We for demand abundantly the seeing to those returning drive ability investment investments. It of And to and that continued applications expansion on our delivery is results increase. clear

top the does that indeed, excess focus dollars driving be So with we're our our continue the growth. to with of acceleration that line

So wasn't other or multiple, element different than the from that change no, excitingly specific any the to demand happy during that we of multiple about very our are strategy areas any there offerings quarter, talk the for accelerating.

SandyDraper

Great. That's really helpful.

And sort related of a follow-up.

higher contracts could You before up, you're that Walmart. coming ROI be see When notable starting to -- addressed obviously, very getting think add people new that renewing you're now, go maybe they are about want the out than with some they offerings it, coming a because expected. with and I they're to

And is sooner? Or back is to so to they obvious longer. What that, hey, the people what's Is else driving table missing for table to the this there want am that's a it? bringing lock -- in theme? I common something

Dr. Keith Dunleavy

Sandy. Thanks,

business the connectivity, So base. our Walmart, broadly to be to I and overreach more cloud-based operations capability, of strategy of The into analytical and question. want about careful our to and platform me design assets and specifically built talk ubiquity is talk of specifically nature business being the increasingly its to data let customer the but your not

are adding business the are extending the as of Walmart those value they incorporating they're the and expand modules strategies, to that very both on access it of did, and they secure their often additional looking pricing secure that capability, and capabilities, longer-term using seeing capabilities As agreement within length to capability. that that are

how value businesses. increasing our are larger longer-term is more to informed run delivering value smarter they in their customers. their connect demonstration seeing becoming to smarter we more the we as into data, that as offering we're data building and capability, what our sums recognizing They're analytics we are for views are value, this longer system, the of it as product and of aggregate So and

Operator

of Our from comes question next David Larsen BTIG.

DavidLarsen

ACV? maybe talk good, Obviously, very be a a Can be the your it was bit was ACV quarter. our down it a good about on revenue you little trend Congratulations bit very estimate. in year-over-year. expectations,

has with impact any on comments And or like any Just especially COVID that? this that had, delta variant? color

Dr. Keith Dunleavy

the Appreciate David. question. Sure,

ACV Let question. me one, the first hit the first,

We with sales very the are pleased and pipeline process sales through our flowing pipeline. that

have in an do of we sales, aspect seeing following the both but quarter. very we're sales strong opportunity know, of you lumpiness our As the quarter pipeline, and

the that we initial one new you During demonstrate added the extensibility top ScriptMed hitting capability. expand a pharmacy other the into company's of Also, adjacencies. nation and in in demonstrating our things really extending of from in organizations expanded ePASS a logos, might all stand did and just sales new further today, platform quarter, Walmart's space, sales strong of pipeline land of platform the during had in remarks, adopting which part their many of ACV This strategy, don't came major show the which are was another quarter, as one and recall had contracts. reminder, not and only XX expansion The pharmacy as revenue towards which payer to are part great like the which a ability prepared extension the great of it. another hub from support wins, that the our the space, decisions like just the signature we not Cloud adjacency extend these another to a press that our impact number pharmacy quarter, of or showing And was record, records wins specialty the our the was we other is was XXX the release extremely end the capabilities.

from in your not business third we of on To the Delta variant changes compare, in closure quarter you're or are and of we last as piece throughout COVID, second those record to quarter, well. the but a in your environment year's year-over-year here sales late the seeing comparing strong a and marketplace. extremely on second piece, So get first in summary, the in the now change point, pipeline

per the the earlier operate we the to projections of that expected continue year. parts in We

you We've As made number to the predominantly remember, offerings to and might legacy services and our our a was impacting area. to adjustments COVID account our area for that. of projections

you full recall, tolerances year ourselves see of approximately year, guidance the half for X% today. contribution only in well expected marching felt just we X%. those and very and comfortable the within still might raising As approximately first the We the

Operator

Our next question of comes Piper from Sandler. Tassan Jessica

JessicaTassan

So of I quarter, guys of pharmacies. in the as you XX systems were of XX XX global think of health top and last X XX the specialty pharmas, top the top XX

So continued already in can structured end just in across strategy what's footprint sales to penetration? understand, major us now force and large you how accounts guys the drive help teams investment of a And are you kind sales these guess, at the the I the that got all markets? have most players

Dr. Keith Dunleavy

thanks Jessica, Great. question. the for

those So to top at players we're certainly, super the have happy top.

share that wallet space in only Our penetration is approximately still about X%.

of have we and XX X top XX. more XX, a inside selling ton XX, top those So

people these as part So continue very force the larger of is effective. organizations, within also sales being embed that to is really we to evolve which

building part as call some that organizations strategy of they we also which out part customer part some of of more a what's total been more is experience of organizations have as Another and have go-to-market delivery, success. customer approach, what called

a programs have of lot that the we're our delighting expanding this customer We on. experience, downstream are changed incentive year on group's Further, that that evolving moving to focus make total there's customer working relationship. to and that and

in provider you force of then the And Jessica, tiers. customer marketplace market, of by XX also post-acute middle quintiles has upper of in their the dominated lower quintiles our expanding as or channel equipment end also, child today offering we're after that those an that one right? converging the or you or sales mentioned -- the XX% What adjacencies, medical is the will, But go the exclusive you the called at like have if to through doing and it's platform adjacent have will. space on doing health within if of the or distributors. what's durable poster a where a we're the a marketplace. base. end relationship partnerships space, company the marketplace spaces, lot of So teams we So now can our we're the sales plan with And we you amazing care the pharmacy. on specialty the like We're dominating their middle, things pharmaceutical in classic have of middle chosen

infusion have nursing companies. You have home home operators, you

So a build out there's network land health of we go-to-market them. of center one verticals sales as capabilities other organizations building offerings are care lot points our capability of classic in out that we don't that each the and those and impact more for

So tons delivery and our side. customer of the from and growing side the opportunities force side, into, experience that sales both we're product the

JessicaTassan

provide we could at expansion. on could so I and Maybe payer if what highlighted focus pharmacies. then kind follow with expansions large by And the specifically? color just the just progression us that then utilization? payer like a of it. up over of if just in basis? module progression the Got from time expansion -- is help a contract is looks revenue market I it of based? payer contract Can could terms you understand think of the And you of retention you revenue And driven maybe customers net a any like growth a Or in couple

Dr. Keith Dunleavy

Sure.

-- let's approaches. different historically X So take

So So going you right? with X sold what longer-term it's ago, -- look if how ago with had we out consistent -- historically, the us Jessica, had, client at with the started we we've years of they that to a the years to we progression obviously, want started pattern very added then, rolled X those we've the of a products. products and products developed have provide and with since implemented

for third a might a can first arsenal it's select who much products So or that product second product. adding or today product be from a new of answer their a different broader customer

the the So before very pattern pattern different is for obvious very than reason. that hopefully today

whether accuracy authorization today, for gateway it with with, is, whether first the it Act, lays data add key connectivity in #X. service But our risk point compliance improvement, with the doing Whatever start than we're be else. pains be different up agreement it be Century whenever So health consumer which adherence, doing us. or it seeing groundwork with a payers something them, They're lake with agreement and come and we're us, starting to improvement, for quality CARES vaccine interoperability of other. be associate reasons to setting whether documents master whether #X, their it #X, their rules whether each them and because they many a what's different are is or the they're business be XXst data us

to I might have customer have classic to arsenal say in the would doesn't we much ago But offer. was see may, for years typically have signing today, whereas within So product be as because ago those it a customers it's did a pattern, we a a years a that they X new second usually X like today, larger classic pattern what year. today coming offer,

translate goals it time financial start of set or gain for that to that the a impact takes the offering, capability So little see in they ago. bit Jessica, clinical into and of them poster quality buy the them maybe confidence start And roughly child the to for seeing they and from the more example them. that, you, for is month an Humana us to we're and release for a see more. easy And out as

was but for So built us leading-edge often Humana, well United the this expansions product or in their in decision ago I as months specialty to with of with they electronic known a that vaccine work ranging fantastic organization us done from that's engagement. the out, in time release as first so, X well. it engagements on started XXXX payers to X X support came multiyear the reliance obviously adherence States, in announcement themselves, by And case, think one its had or with partnered for technologies, pharmacy -- the top of

it expand So is, of value. lot them a patterns, land we Jessica. and point is contain them But demonstrating different by the we

Operator

question of next Daniel comes from Citi. Our Grosslight

DanielGrosslight

Congrats momentum. on continued the

and to payer, forward for life same of your based looking the pipeline pharmacy. do you if this could You've quarter sciences the sales strength previously Wonder ranked the you're momentum type, customer on provider, XXXX? seeing and

Dr. Keith Dunleavy

question. our other and that they to are the on we more we'd saw actually and call put and is prior payer accelerating right there now, and accelerating then the on #X. QX. We're the well a technically, we the the But would -- layering And impressively of sciences. seeing in start the and of world pattern and then to and same out neck in provider provider. is getting be very, the blazing more up and just Pharmacy -- quickly data life We really this in for thanks Thanks, today. direct we're And have Behind sciences fire impressively like this payer we're horse analytical at data to provision Daniel, and year, is capabilities stream them one the business still life significant players in life race both that By things between to that there tied still, and seeing but today. might provider very data quite sciences. is front. strength, end our hitting expansion and in with neck major

So mean of growth don't And seeing. all high and strength higher all digit. much teens. X quite some double in solid a I really double-digit impressively double-digit we're I areas, across rates bit mean

So we're across the board. pleased pretty

DanielGrosslight

you, then now little coming revenue follow-up, you. legacy. for as depressed it's of a a That's just focus less not a quarter. helpful. in that it's still little wanted a but X% to this And revenue on bit than Obviously, important of I Got stream

imply that get that the around that X% doubling be what's the of that year? you for half back going of revenue You're gives in would full what second year? still X% more total keeping to confidence up this able full to And which of of kind be you'll at that, for Curious guiding to sub-X%. that's year revenue, than of the

Dr. Keith Dunleavy

Yes. Thanks, Daniel.

So as expected we commented we the in first the first quarter, through year. of this half that

at So year. be to we for it expected the X%

very up that to the our on bit we're got a of the We have seeing how projection. into part use of reflection conservative to estimates holding the progresses utilizations Certainly, in industry utilization normal, second still a accelerated there that. health year. in cushion of below a lot nearly nice But compared and across care mild general. the that very a is quite have Most very, expansion visibility that bit and a in of back we're expansion of we've conservatively

Operator

comes of next Our Leerink. question SVB from Davis Stephanie

StephanieDavis

I echo my congrats as well.

housekeeping So first one, just quick one. the a

numbers. we've in How about the quarters to for big you're and some of some the of last was still just it's ACV, pipeline? push that I XQ is much But Cardinal in our been your of year because the talking some toughest that in it a out deals think versus mismodeling comp your on future maybe obviously, larger a at Walmart year. delta versus

Dr. Keith Dunleavy

Stephanie, thanks for the question.

pressuring when key are ready sales. now we June and we sign June sign that what by XX, to XX. June pleased the thing sign let certainly, magic The client avoid learned is So clients of seeing have them XX, to the we're very with in the is

We pipeline and closures robust QX. have a sales in tremendously here

to us norm very So is expected. this and much the

the pipeline, call have that are things runs treat rush we runs. have and home We and the with the they push to things in need. through and as are them we singles that we come see home and bigger We them. doubles, to and that what triples And and we care then want them don't the want ones layer

pleased and have the and plenty closing now and we that you'll implementing of confident that am in sales plenty QX quite done QX already be I with. we've So

StephanieDavis

with Perfect. that. themselves let with [hook], don't I agree philosophy, for the that off clients largest especially on the

we of your you'd the of my so But bit about kind Now year. your kind hear to strategy Life bit hat Sciences far-reaching business. little a in for focus, direction a question of in more is would second kind long-term like go more

the lot database. it solutions a you're a the got you're different something its demand platforms is evidence it side business into more real-world to you of out real-world want Sciences life of lot the wouldn't at it less square into folks kept in going What's and considering? of this a You and as go to buys? to data you're opportunity? this your structural why a Is lives, ton of Life U.S. there reason It's more that something looking got sciences side Is And you that? the something on of there There's advisory access for build? Or in is world. have the

Dr. Keith Dunleavy

very, question. is today patient and X space. that us you. engagement with agree completely is software This the service sides. the platforms the Life But we research space. expansion for Side We us opportunity and flow driven the the from towards that and working area really that is in a marketplace trial identification, great there's think capability. a also, will very selection, for important and arena by for in another that the us. that, importantly, process are in out recruitment also opportunities in really retention and is large taking that are management that feel very in massive data And be analytical These the of there angle this process we are stream we that #X to is clinical Stephanie, and are software platforms strong Sciences, a

identified there that in the this systems, look a X the data a marketplace you systems, patient time, the the in decision the of doctor's take or within it is network. and data systems, the the data quarter, claim awarded hospitals hospital pretty at been aggregate for particular ability pharmacy The country, connected arguably the a gives they'd identify seconds. or that all doctors' we've real intellectual or you in into platform of for important systems, perhaps on If office support only and X which the the the some capabilities lab world, protection the to be across EHRs, either property deidentified also whether offices stream,

allows the data match to all valuable post-market monitoring and is enormously and across clinical Because primary you to longitudinally of and valuable and you surveillance allows underlying also identified incredibly link sources and patients. on patients care. this also to the trial to So marketplace the impact research data source

stream the disease that. for seen and country. So also but believe and treatment combination, country can marketplace, second of data platform the system, patient. management our applications the capability data, none in rapidly to outcome as the not treatment deidentified no in we the but is API not the There research sciences a identified will and be life do in for ongoing that just of particular the of a in other just improvement And

we is large that is excited that a nice going very will obviously, our response that. So not we a are opportunity it. see on. very numbers, take We're forward, and process but on time. it It as in focused about It we're getting a

StephanieDavis

quick-fire what's buy, So scaling your it or answer? up, build

Dr. Keith Dunleavy

Build.

Operator

Kesavabhotla comes Baird. from of question next Our R.W. Vikram

VikramKesavabhotla

quarters. it's frame it ACV. like could I I us Obviously, wanted help a to on what bit follow you been the lumpy ACV over the a normalized here few guess past looks up state any the of we the just rate pipeline in should color should be And for the in of the particular, what business? right on year look like expecting just second half on based now? the growth

Dr. Keith Dunleavy

Sure, Vikram.

in supplement, going I and is measures XX conversion revenue our our the consistent you that a our ACV don't. think know if see clients look a platform pattern. Street very Wall to everything side to and at I take you're pattern of days, ACV in our but

underlying a conversion of But very is pipeline have. records. is of The pattern the that well. is sort -- a the we very consistent that pipeline So pattern fantastically hitting doing

second quarter quarter, third performances of alone So see year, to expect fourth the both. half we in meaning very would let here strong this and/or

else have X over the that, So in on seeing concern that given strength we that that? Vikram, specifically, Anything we're process.

VikramKesavabhotla

long-term think talked you're just given to to that's potential the business the give be I I to and mean, range early growth follow-up just you the what strength that that, question just I of now? this and appreciate No, may contract could at of rising guess, I But any given helpful. point the commentary relative the could a seeing this if and you just answer. right durations in what the be pipeline on about. Curious XXXX, tough

Dr. Keith Dunleavy

theme very at we're XX%, to and promise been demonstrating I coming increasing raising successively hope quarter, XX% our guidance we're is Well, We've has our fourth on deliver. as now to raising Vikram, to Wall XX%, XX% under and to year the XX%, XX%. today well XX% to over in seeing then XX% Street raised

see momentum, we XXXX, to for very underpromise but you to strong better our to it theme overdeliver. premature give day. us execute It's for a absolutely ability our and guidance getting on So is and is every growing

excited it. we're for So

have exactly achieve to job and our hard work continue that. the team is doing down, but We to head to keep a phenomenal perform,

hope that I helps. So

VikramKesavabhotla

Great. Thank you.

Dr. Keith Dunleavy

Vikram. evening. us time to Thank just few wrap join that, want for this taking I I to before And like reiterate, key I points. thank with to up, But you, on may, I'd a just the everybody if

in a strong, very came all, quarter, team's performance strong expectations of which First quarter second as and of a I was row in the really well solid outstanding performance second grateful. am well for above Inovalon's second for execution quarter another the our and demonstration

cylinder but for during be to units. continues pipeline the stream our brought cylinders are here we it And one engine up, not firing, and seeing demand of cylinders and the seen at machine across we're business all speak, strong and is and like record the we things QX. that's the already and now Stephanie firing. opportunity levels, that quarter them. are And in this data as in about both that points strong the It's of Second, to we're sales adding the excited all data in engine

appreciation are as as the prior XX%, guidance contract of are XX% for the to to subscription-based for we analytical We're XX% continuing and in and by with growth are moving organic evidenced as results. increases of the on of sales increasing that innovations a XX% and and in durations, our revenue of investments well XX% accelerating quarter, our third a renewals strongly capabilities all growth XXXX doing Fourth, compounding our online with in as to resulting, that expansions, planned, our strong the fifth, see revenue across marketing, our future our at in you're XX% which seeing delivery tailwind positive acceleration. outlook marketplace metrics. and seeing strong growth come well, continuing is retention to all differentiation are in we're contract implementations continued we're see And our in above sales of data Third, adjusted that very up accelerating profitability as extremely the longer-term our and data very showing where year-over-year. that and contract historical EBITDA numerous growth rise to rates seeing,

of of enthusiasm all And we clearly, So of in thank ongoing for you night. time and you, lot excitement a and we're interest what we your now seeing us. and evening have Inovalon. ahead good for this and Thank your

Operator

Thank concludes this call. participating. you today's And conference for

You disconnect. may now

Kim Collins	Senior Vice President-Communications
Dr. Keith Dunleavy	Chief Executive Officer
Jonathan Boldt	Chief Financial Officer
Daniel Grosslight	Citi
Stephanie Davis	SVB Leerink
Jessica Tassan	Piper Sandler
David Larsen	BTIG
Sandy Draper	Truist Securities
Vikram Kesavabhotla	R.W. Baird

Inovalon (INOV) 29 Jul 212021 Q2 Earnings call transcript