Inovalon (INOV) 5 May 192019 Q1 Earnings call transcript

Good day ladies and gentlemen and welcome to the Inovalon First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only more. 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

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

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

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

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

measures. certain non-GAAP Our presentation also financial includes

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

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

building our healthcare. into of strategic continue The reflect you, Kim. against our for the be leading to that the imperative of progress upon we accelerating architectures, chain everyone through quarter cloud-based realized brought sets expertise, results Good the synergistic data go-to-market and and Put afternoon and XXXX you by motion, growth now first empowering capabilities value revealed. and make independent connectivity the provider data-driven over quarters, call. thank life many joining matter Thank clients expanded being to reaction of of and leading platforms sales and expertise analytics, from subject and cloud to and referrals being the

value to against growth, realization, outlined client exciting and are to client We just driving about our performance retention rates, are compounding remain executing in company. we you new more, achieve margin contract value annual expanding sales, on clients earnings growth our of and plans, seeing a our any track By that guidance set factors rates, we logo or financial sales, revenue November. for measure, XXXX and first last our successfully

and and interest, in leaders these market opportunities, implementation broader and engagements in engagements table diversity As of over companies. depth organizations capabilities, highly marketplace leading resulting Platform. with leading of provider of of innovations platform leaders, and efficiencies have sets, I've legacy from configuration broader differentiated And number past offerings sales brought about and ONE plans from tremendously us life to and strong support bringing at the the of and today. quarters, cost technology with the Inovalon offerings Inovalon the with industry to sales. excited The proud ecosystem, subscription-based informing and is organic We're shared of have transformed few business pharmacy we and are the cloud-based, the Through you both an ONE the pipelines company. the of increasing breadth of its to Inovalon Platform and integration a health strong table healthcare we and data organizations sciences has the driving to flexibility the

team In strength and expand our our sales investment. and our addition continue team, strengthen further return to expand leadership expand we platform, the artificial of intelligence client and and management strengthen and to strengthen the of analytics on drive and our utilization increased in to sophistication

signing of in Over analytics increases performance of the Each that business. significant in to is in seeing. for of value depth positive impact. all yielding application rates contributed higher referrals, services Clients of the having artificial contributing the have they're past initiatives our additional company individually Together, year, sales very than datasets, solid are has improvements and connectivity, that we high economic realization our client with significant significantly realization in to of The and new achieved. on these client increases a being our retention intelligence more breadth is contributed to increasing and value the XX% advancements seeing. our client expansion to compounding

sophistication additions to growth. first the is quarters the shareholders. capabilities success its for our quarter significantly sales and since call, the ACV company of As strength new capabilities, sales company organic in increasing conference business to are of are platform XX-month multiple evolution into new interrelated translating sales, initiatives. platform and the XX% strength, Inovalon successive with The we year-ago trailing speaking have and excluding ABILITY Services, model an to XXXX; and and and leverage November the XX the into supporting simply, increase efficiency of the which now sales rates, new period; Services, resulting new teams and purchases XXX% revenue new sales, into period. months quarters and we and as been referrals. successes X.X the successive and success reflects additional focus client ACV is significant sales, the strong increasing of of quarter cash ACV many strong are successive growing client layering is increased ACV an totaling And the scale and the of ACV impressive a and quarterly positive first these business, company's XXXX, compared retention Put translating release on These ABILITY, $XXX.X Strong profitability our flow. clients, X, million, and our new of in from compared seeing XXXX expanding the and of yielding performance strong excluding over ABILITY prior excluding XXX% logo

have We our you the to making that, opportunity and they tireless this we speak unwavering many are many seeing There initiatives individually are are of of efforts the are progress and for heart and take their are like proud I that and to thank performance but on of across drive, soul support the our driving. everyone and too would mission, the our returns strong are our review I am for grateful. organization to of the over I growing this for quarters to us the they momentum. With of the and positive over their and point many inflection get hard and the call that for success to contributions the to for will of balance Jonathan our year. results work to and invested QX quarter outlook Jonathan? turn to the upward the

want Keith few points Thank begin you, I building a highlighting afternoon on good key by to and everyone. comments. Keith's

delivered strong profitability quarter we range. ahead our of guidance improving First, with results first financial

our cash driving cash and expanding accelerating revising organic third, remains guidance. are and strong EBITDA, upward full guidance our focus reaffirming year And and efficiencies and and technology-based flow. revenue, growth, XXXX non-GAAP on flow our GAAP profitability associated we adjusted revenue earnings Second,

quarter the first to turning results. Now,

sequentially, growth XX% revenue of XX% our year-over-year XX% reflecting over towards grew and revenue quarter increase and revenue ABILITY's of the transformation organic our total $XX.X the QX an of line was guidance subscription-based XXXX XX% contribution strong X.X, successful XX% acquired with $XXX.X first was quarter first end in year-over-year million, of first First platform high million, revealing quarter range. XXXX. XXXX. In to quarter Inovalon of revenue

was legacy of total services X% only XXXX total represented quarter revenue revenue revenue. and First of XX% revenue

XX quarter mix margin, a margin which points. value, increase product by progression margin quarter higher XX.X%, sequential first gross gross revenue XXXX the first of represents strong X,XXX margin to was points, basis Sequentially, gross principally significant and of shift. driven beneficial, continued higher higher year-over-year basis increased Turning at

year-over-year year-over-year subscription-based higher provide accretive margin, solid the to XXX the the increase first quarter reduction continued technology-enabled ABILITY, which gross $X.X the first gross by partially profitable mix contribution, continues XX.X%, million, a G&A was in XXX ABILITY's tremendous margin setting the integration which through quarter translating in our points was our which sequentially. quarter driven in first expansion million of basis and impressive year-over-year efficiencies, higher expansion Consolidated first realization efficiencies. growth. X% margin of a positive increase XX% of in XXXX basis of $XX.X in of an an basis, acquired margin sequentially. only gross G&A million year-over-year G&A gross million $X.X future a increase quarter by leverage of represents was in points by for $XX for $X.X of margin for into revenue, synergies. be expenses G&A increasing foundation increase and non-comparable driven On $X.X Excluding an from Adjusting expenses, offerings achieved platform offset expenses of million, million General value, demonstrating was operating administrative increase normalized and and was the

operating strong provided deck. first margin XX was significant on on came EBITDA are expense quarter XXX% our XXXX. of $X.XX Adjusted $XX.X quarter slide efficiencies the details basis. EBITDA margin XXXX XXXX of in $X.XX, to the profitability. net per of first the Adjusted at supplement million, increased increase and in combination year-over-year drove quarter $XX.X improvement XX.X% Additional gross dramatic income an million year-over-year. in share a or of for The increase revenue, first of compared an earnings for was X.X% the non-GAAP of QX

income approximately tax net a effective a timing from quarterly non-GAAP share XXXX from million quarter of benefit. and $X.X tax First lower the per benefited rate $X.XX

tax XX%. continue to approximately rate an year XXXX, expect full the For effective of we

Turning to strong. the remains Inovalon's financial position balance sheet.

from Reported and debt March $XXX.X debt $XXX.X of $XXX.X revolving net debt the of ratio short-term together, XXst, cash, And fees. financing agreement sheet as amount not facility. investments the million XXXX, any outstanding debt the $XXX of had million, was of approximately and X.XX:X. million the were equivalents million. was and deferred net first all within quarter, company's issuance this $XXX.X discounts million. Bringing balance net debt the company credit drawn cash As end our was defined Total as was the position

debt increase service cash the flow, of quarter from $XX.X net cash activities by even first XXXX. since in an of interest in $XX.X the payments Compared after million, of which, went cash provided to our operating XXX%. cash XXXX or first quarter $X.X Inovalon strongest of first of quarter increased was generation the net million public represents XXXX, million, to Turning operations

of quarter million $X.X down towards First or $XX.X Compared first historical X% includes back or as quarter revenue. XXXX, returning CapEx the XX%, which million to company was CapEx, ABILITY, was previously of which ABILITY, levels excluded projected. the

the anniversaries XXXX what acquisition, the which of in to in QX XXXX company of with to as Inovalon worth X.X, reflecting generation the undertaken quarter first combination the ABILITY significant flow number been refer initiatives and The it's activities transform of to restructuring the have today. that we company on cash the

free XX XXst, trailing increase in For net defined XXXX, compared less Inovalon months as the operating cash XXst, million investments of ended XXXX. provided capitalized XX to or million equipment flow, an million generated by less ended activities as for trailing March and purchases or property of of $XX.X $XX.X months March the XX% cash in $XX.X and software, as

strong incremental $XX very in cash cash and the after after Importantly, business was generation in million interest cash of cash integration flow $X.X net million free flow outflows demonstrating expenses, of payments the model. this

over Additionally, XXXX decrease the the of same as launch basis, to XX-month of a Inovalon we from decreased CapEx continue and revenue see $XX.X percentage year as levels CapEx Platform. after full million ONE trailing the

results XX-month CapEx of slides on found be and trailing earnings our on details XX our XX can deck. and Additional supplement

our let outlook highlights. me and turn some XXXX provide Now, to key for

wanted is we that the progression While view performance we into insight the through longer a believe to provide company's XXXX. of company's additional expected term most appropriate,

sales our this, several very The As comes XXXX. a the for we strong of quarters. client are strong On platform a subscription-based on now net retention of layering XXX% basis, it the we these intervals sum contract factors discussed, take rate ACV sales we that revenue have into above an also do has significant mind from or distributed equally new reported majority realizing time into sales is timing signature sales year, Keep of the and a sign successive quarter not recognition organic throughout these from can implementation growth incremental and the to expansion. have revenue coming dollar of and top offerings, variability. in

incremental million plus Taken per revenue approximately together, which at in $XX quarter we here a conference these been to we our range since to into translating variance $X release or of that factors minus see have call of each are speaking approximately million third XXXX, the $XX successive quarter. quarter and XXXX around in midpoint million

As such, is following providing the guidance. the company

are range reaffirming by cash prior the EBITDA, For net XXXX, full and adjusted guidance our expenditures we year of operating capital provided revenue, activities.

our increasing and of GAAP per non-GAAP revised share non-GAAP tax million. and $X.X quarter discrete net rate in XXXX tax income effective and are recognized net to income of We first and reflect GAAP income the the benefit

quarter XXXX, the expect million million of we For $XXX $XXX revenue. to second in

Q&A conduct let details turn supplemental our earnings We the expect for deck $XX be non-GAAP income expect me to EBITDA $X.XX. to ranges. operator million. our over Please to XXXX quarter to adjusted be release net and in our between back and $XX we $X.XX million today's between With to refer per earnings first on diluted call session. share that, guidance And our

Instructions] KeyBanc. Hooker first you. [Operator from comes Thank with question Our Donald

now Your open. is line

afternoon. doing I quarter. guess, maybe, you was while talking. quick just Congrats Good on math were I the Great.

comp. it because ABILITY I you to about trying I going beyond? on the get worked there. quarters, a talk and guess, Is don't driving that's, there kind trends and of specific through wrapped seems I'm out the right that's about like just rate the it's my potentially over the ABILITY that, trending forward I around like at year-over-year head sequentially, have Can mean, But anything outside? up we us $XX for it XXXX sort think new debt And of few of past good which a looks is nicely. number. revenue, million growth

joining the Hey This Don, for evening. Keith. call. Thanks good is Sure.

the people. in contribution just different job. and matter not been handle been subject process. doing and earnings a a The also the to of aspects great They've hugely EBITDA very They're but been just is ABILITY It's So, they has us business. well. integration and of fantastic how contributing revenue positive beneficial a in as group

synergistic seeing that, XX% in count business growth. we're is in synergistic number. underlying growth revenue nice seeing point, an But so we're together, is also plus, which organic strong revenue that the we're our together. getting foundational that the counted all number in and organic Given that growth, roughly increasingly at aspect not strong a this we're growth We getting about of

subscription trying But little -- of looking Can Services is there's SaaS for what's growth follow-up understand. kind Okay, maybe there. Obviously, of also you had assume Is break you. talk that revenue I great. old in nice growth big revenue Thank That's part also line you're line. And it you like well? fair? trend kind a Can of the good that perspective. that the about a bit, business. one in to as looks impressive, the that a down is there? Avalere and

Sure.

to XX% capabilities. to full you're the also XX% doing strong XX% think people demonstrating We with group strong great rates, pointing growth is of that But they contribution contribution, really as still or are encourage an basis. roughly So, a job as double-digit them out. year

services? makes to increasingly looking capabilities, aspects its the that of also out, data-driven then strategy, in It is point contracting sciences But the how And also, Inovalon work component work. well, or apply data-driven pharmacy Platform of up value-based have that is their smaller a solutions to and go-to-market in apply a Avalere is predominantly, understand marketplace implementation a as component. care as which aspects lastly, that ONE does, health but So, other the outcomes-based you those to elements. portion to services how supporting nature, what then life we system the

platform, to are working which we companies. pretty SaaS-based contributions. with customers implement the for our Inovalon think which I those around typical and of and is revenue, is But an configure XX%, aspect So, have somewhere ONE our the

Thank you.

Sure.

Thank you. Morgan comes next question with Ricky And Goldwasser from our Stanley.

Your line is open. now

evening Good details. and for Yes, hi. the you thank

we think the I long-term from we perspective, should year, understand but type when the obviously know think So, into visibility business that was about what visibility about a about full and have the cadence XX% of second talked think just I we business expected? the the second you initially the one. should as half than you of quarter just about first we materialized do between And year? into all, earlier visibility that some of second That's and

me walk So, you this, let Ricky, through too.

all, of First for call. the joining thanks

aspects number the what do have. how we the So, are kind point one, building, visibility of quarters of

of recollecting right that our number in You're revenue. in gave we Today adding in XX%. February, a convey of February, a We're amounts late nice we of XX%. materials, number

back of of growth You points new view. sales, strong new quarters, can of revenue different Go the look look XXXX, first portion at sale. into two That's a ACV it and from see year rates. the you'll several new very

know, you many of a aspects not five term, only into long as that So, even We're first of and year in revenue the seeing contracts in count and new are years. our ACV. But contract. reflects our ACV many would so be Ricky, and it's our six-year only even added contracts, renewal

each first touched million the place. year, addition each have to in the we we XX% as incremental quarter of prepared sequential revenue $XX march a being remarks, note And seeing quarterly sequential story you're of very organic the multiple before sequential you would second And that I subscription-based you its majority came into and if through as $XX quarter transitioned the to full call. a and in that a nature. more out roughly, that roughly on in in quarter, has Jonathan XX% And becoming nice is at built look quarter-after-quarter that such, growth a business And company the up sequential the the multiple strong So, to now think seeing The growth of we more of encourage revenues. has ACV additional off your as that noticed business. of it is layerings, to quarter. visibility year. as you're million

visibility, good year. very the doubles is through talking systematic is very revenue many, playing very there layering many of nice nature about singles wins, year. the sales and So so how the We're through of progression a out

So, adds the we and it's through QX. year. little of as hopefully, think just with that a to reported, million help But bit a -- how visibility in $XXX.X

$XX Just each you're minus plus range through variability midpoint $XXX add at land the and the $X a to $XX on million quarter year on or million in going for million quarter the midpoint. that each with at million to

per a growth about we as So, should the quarter revenue sequential basically, it year? compacted of rest think to about the X%

right. about That's

Okay. Is that a way? good

at with operating a leverage. amount obviously, Yes, profitability strong way that's looking of it, good very a of and

Okay. Thank you.

you. Thank

question you. next Jaffray. our Thank And Sean comes Piper with from Wieland

is now open. line Your

Hi thanks. you In interrelated prepared you're remarks, the mentioned successes the that having.

Avalere wondering to was so to just the if does and deliver that. able you have don't anything, instances name you could Creehan, you've across where some or some that core you've solution just client been aspects names lead, such, together, understand help me but different of give us, ABILITY, a to of got And Inovalon, that

hearing you Did we the give benefit evening. Sean, is I of some I I'm could a synergistic say bit of between think What having little different I Yes, understand interrelated companies. the correctly? good tough heard examples you. time you

You did, mic. into and you. Thank will I my talk Yes.

great. That's

of plays number that a different out in So, Sean. ways,

to organizations and interconnected it different benefits meaning product itself talk having differentiated from the let's bringing multiple just in end us where the that driving more marketplace Let's interest an Then sales. compounding also that's the increased the at benefit. alternative about makes talk about from parts table, parties

organizations payer a provider the increasingly do in that some many. looking is announced, like pharmacy are we But other had and at And marketplace the to what the Prime. piece, are a deals, they AllianceRx the complexity announced Walgreens, like We've haven't. marketplace. the pharmacies some we've play that increased of and first the role valuable we've is So, number -- is Walgreens examples specialty deals

the provide majority So, large interest to with well That's bringing of marketplace. the of engagements the us is customers we point, relationships flows data and fact and XX,XXX value deliver in great sites, of that and differentiate north them of health marketplace. marketplace the collaborated that pharmacy the at provider to and have plan tens to them with well as of the as thousands this table

one publicly example number of pieces significant analytical matter that of outcomes-based subject to So, able has the the companies category the it. Avalere and very where capabilities a are different to data sciences is sets marketplace where together, example the strategy Inovalon to one to is working of life are nature combine the and easy and element is an easy bringing that pharmaceutical the offering a expertise contracting, that's under-pressure parts space. Group in that already disclosed the the contracting, Value-based In go-to-market unique today. of provide into company capabilities other

to to the that, but to Group, offerings the the that tool provide help? Avalere provide now life are So, the Does services platform very that informed much using Inovalon are is by the expertise matter able are that -- subject group Avalere. sets and and brought able that

lot. helps does. item It then Thanks. It $XXX,XXX? And What exactly question, a of quickly. tax discrete the was a numbers

which How deferred it's Sean, Jon. liability Hey tax first in occurred of $XXX,XXX you? result re-measurements, the are quarter. The was the some

Okay. much. Thanks so

And next SunTrust. with comes you. from our Sandy Draper Thank question

Your line now is open.

much. Maybe Keith. for very first Thanks

Just to the ACV grow. a nice continues to year, start

changing the the was out in quarter, to pretty demand where trying in if starting I'm are XXXX, curious they're XXXX? to to And you I think about, where in think to politically. what are, a there, environment, starting just Just it's see are is build or different sort what you much of business -- call, where of there if one it's if changes XXXX. starting up levels what this relative there any early just happen interest to out know trying when to continuation just drivers -- to and saw

the Thanks in call. there the has significant an other question. seeing thanks pipeline for that and XXXX. strength than change Sandy, no Hey been here in strength, We're joining for increase

variability, very they it happen pipeline when the year you QX, you'll some that see we're and things QX, is to If and some that. There strength seasonality, sign. of the it seeing been each But together, is, last is obviously, is that excited we're increasing, of QX, ACVs about QX put just and have strong.

about Okay, this mean But it's ACV ACV I'm doesn't it necessarily understand is all to sure or you, great. sure going I when That's And helpful. at XX forward Keith, if think The the it just the make the calculating I start for months, correctly. for want you're is time. to not same -- for but Jon. I

So, all annualizing, we not can sort of then staggering numbers it. then can't thinking quarter of start a adding there's July we Is it's coverage, to you it on to about going then idea about ACV on get There X say, Xst. think But way said, that as it? some to variability and on first Xst April and an there, the October effects that fair and to it's like timing, are so model exactly.

months exact can it additional some complex, very several sign is be way. and to ramp-up configuration might about the more little then little up run needing and thinking as right before period it revenue meaning, the mean, take be starts are or the and Others revenue four rate, business near even you're ramp well. weeks and within I done Sandy, three can a generating of be recognized, time. there at

So, way. right the you're about thinking

the right that's Yes, thing.

Okay, great.

one, out you last organic -- one with then ABILITY. pulling I'll And guys, sneak I Thanks. all When in. Okay. the appreciate numbers,

company it's once Just think to to you of Or -- you annualized? lapped sort ahead we've at once do total of that. change it, ACV ABILITY? will you still excluding get talk and over forward will trying look Going

is going it going to Or stay the to forward? numbers change? consistent are So, going

You're right, Sandy.

of their as will annualization ABILITY be the be full we'll in services wrapped With ACVs the now and them platform recording separately. acquisition, ACVs and

Okay, fantastic. Thanks.

Sure.

Daniels our from William Ryan next Thank comes question you. Blair. And with

now is line Your open.

Keith, sales healthcare front. think, matter Obviously, more, the versus on the one to great for comp dedicated model the color you and as experts Yes, subject for refer to management last question. thanks a I your taking year. moving job for you them

given beyond, strong going XXXX else there honing curious, some from further I'm the we team you're or that model that as in new of So, head in seen client are and adds making investments you're investments? the forward the into you've anything

thanks on the for great Ryan, have to and question. you call the

likely the all, a tremendous that lot pretty at be a just at of to But Jonathan, growing roughly are doing in a absolutely as things at. you transitioned and anything as to to we we ABILITY the of really, how to darn doing From job We've allowing be a Hasbany add sale rate percentage and Meadows they where First technology-driven which been job more a expect basis we're just account that faith very Michael have run see rate conveyed. here, the is revenue, because been that expect We're that? said, the, they're on will I to phenomenal. to that they've has we selling, Bud invested here. market, team company to out. delivery the team, in sales grow growing Capitel and basis, we're sales how and that people tremendous, best on we're out, Jason that them just And revenue close their percentage of and likely run properly point as a we're really we've significantly you to to management-focused more sale close there. going phenomenal.

right, that's Keith. No, exactly

Okay, perfect. the even that, strong margin seeing, you're and, And on front. then margin ex be more Obviously, question the the expansion will both some ABILITY follow-up performance. great given deal

key I know benefited what the over we the be as that year. drivers you some revenue shift has going of of to think So, mix growth? last continue about will forward, outside

and off driving learning more probably intervention AI human up. and with IT yield had You paying investments less machine some

the growth? are that continue drivers what kind So, revenue Thanks. XXXX/XXXX of to

will. maxed, Sure. Well, you're hitting if not the you right things, have Ryan. continuing. Those factors They yet are

us. platform and margin greater of As value learning in our client remarks, higher value some value AI layering to we already We're our improvements helping and and offerings, clients, variations That is buying with and them and higher and yield reference and drive them to which of the for made we continuing, being happy greater both for into the us, offerings and are that's machine it connectivity the us. on the and them on depth. generating solutions strong increased clients they very is configurations data the seeing higher

then at scale see X%, And our a we And All in are of should NLP connectivity, driving addition -- to literally about quite we're continuing. tremendous to leverage clients bit significant a benefit then by revenue increasing way as well. have company. early as that's talked to you That these So, the G&A innings expect long well. as the efficiency our drove is to that, us go. X.X%, up continue still for things XX%. for and we roughly is for while And we improvement

So, but we close things feel started. all we're actually in the getting just to end listed, those, but fact on you the like don't

Thank helpful. That's Okay. you.

Thanks Ryan.

you. Thank

next comes with Robert Matthew question from Gillmor Our Baird.

open. Your line is now

Thanks the with the discussion And on only risk side. and Ricky guess progression. coverage, the I of implementation revenue wanted I you've signed Sandy the would since revenue most to on to be got for follow-up revenue on the is and the XX% question.

about? over can maybe they just there of pretty how implementations thinking you the you be to are are out any we So, that should course help spaced Or understand year? larger call out implementations? us schedule And the

thanks for Matt, question. the Hey

turned that. operational of want X%. But leaves XX% clients covered, We We us. With year. is feel about the of those and to right. obviously good You're that. and implementation that getting an part X% don't still very all configured to is important on things minimize important delivering on

because is triple, question and your team, many to these singles this as of more implies. single One draw and of seeing an from have many, point revenue would of year on of can elephant-hunting ACVs come implementations, doubles, but the key success growth, sales occasional the I you're aspects not this is challenged the more the which attention

to pleased base those all we're diversified be and client accounts. all turn-ons are those a So, in Nevertheless, client expansion implementations, seeing very important.

is teams attention. -- constantly. lot even our focused or or We kind single doing ' have two knitting not gets a like the It It's on our implementation lumpiness a year. them single there executing single of a three of a here. through lot in that of there's all-or-nothing one and not or that a the two issue three one, But

numbers then enough. one question. Fair it. Got And

I add-backs, costs And us away at non-comparable EBITDA if that about you some what how sense curious Is ABILITY? can that's to wanes the And Looking you next give we then cost the should go something item? related point? quarter was to. some do know the as at to some -- think anniversary the if that of integration

Absolutely.

So, approximately our first on million $X is or have for reconciliation We still that details $X some slide in additional did integration. We of the million to spend, XX costs integration the million for targeting second deck. our year of on adjusted quarter. the the include $X supplemental EBITDA occurring

items, non-comparable $X perspective still include one-time for million does in of our year, other wrapping or ones. overhead the $X putting through full the For then plan. systems and integration on to some operating have specifically, system the more migration new or and legacy million in the result That as resolving items, advanced

it. Got very Thanks much.

with Well, Great. to like question. everybody final us the evening. to that thank taking for that -- I'd this time join was our

We're into Number about industry-leading to translating X.X evening. to forward and seeing. Inovalon increased to points. company Number two, the company there, into reiterate excited Platform the of to Thanks with hard our The cash and just we for delivering a client quarterly the we've Inovalon one, our the shareholders work Inovalon. increased retention sales and Good increasingly we're translating audience have speak driving of the ACV the strong rates performance you with and to time rest is all an and us every the operational into out that in flow. for the the XXX% year multiple and like strong continued about, bring we expansion we that we're efficiency number way. clients, looking incremental highly-differentiated excited along client profitability for of group. that key the your interest to we're the and above expansion a organic performance the translating wrap-up, growth. organic And evolution Thanks We're value your growing quarters for clients three, this leverage updates for of demand then day. few you night. diverse the Before is I'd that layers now ONE seeing, of talked now,

today's have and day. for wonderful disconnect. participating Everyone, and you does may thank This in conference. you Ladies gentlemen, a all program today's conclude