Inovalon (INOV) 19 Feb 202019 Q4 Earnings call transcript

Good day, ladies and gentlemen and welcome to the Inovalon Fourth Quarter and Full Year 2019 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. And now, I will turn the conference over to your host, Kim Collins. Please begin.

Good afternoon. Senior of Collins, at Kim is Vice Communications President Inovalon. This here today am with I Dr. Chief and Executive Board Inovalon’s Dunleavy, Keith Officer Boldt, Chief and Chairman Inovalon’s Financial Officer. Jonathan the of fourth to you earnings like full would I call. to our year quarter welcome XXXX and

release today’s results for announcing the available posted call full will quarter the and afternoon Investor financial distributed on on was be XXXX this our Inovalon’s Relations a press fourth and The year replay website. page of shortly,

listening you remind remarks herein February of For the rebroadcast we call. are not the today, initial those this call, will to to you of of updated and that made subsequent XX, earnings be the XXXX as

under including remind Act materially. could certain operations. I you plans, results the Those statements our related this statements objectives that statements Securities a that and actual call of and strategy future Litigation position, future market and differ of financial during growth to factors operations cause Reform our number results as business of XXXX, will made Private to forward-looking maybe involve characterized for

concerning the information factors Additional company’s in SEC. filings and is earnings release the these with contained

conference to a IR effort an website. section investors, webcast call on this additional by information is our accompanied In presentation, and available to is which provide the of

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

non-GAAP measures. certain financial also includes Our presentation

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

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

The are differentiated the strength fourth capabilities that and data marketplace of also this adjusted of been another record XXXX by stronger. clients to brought everyone with Inovalon, happen to The the never our and teams and demonstration cohesiveness with revenue making but thank and you, for have the period strength the record value not the growth. afternoon, to our performance demonstrated you Thank of sales Kim. call. only joining quarter EBITDA of strong Good

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a demonstration quarter determined we market that The to us anything fourth was great year of the the capabilities. said execute we and of before have That is We're XXXX embracing how our but and opportunity of platforms it. tremendous are the full complacent. aware on are we

another as see strong can heads You ahead. to our keep on down we us year count

I'd before deck. As strategy. we execution out share to our supplemental like describe three our with on navigate opportunities We've these X the of you that slide our us guideposts laid

deepest industry's analytics most access The source Bring cloud-based the and market differentiated first the of is with healthcare. transformation most data-driven to software the the advanced, breadth to the the in lead to innovation. platforms empower of advanced connectivity, greatest most primary data

advanced ScripMed overall applications known NLP-as-a-service as innovation. We language and significantly toolsets did capabilities company's processing and extraction our within expanded platform. number advanced known artificial advanced pharmacy in the intelligence a that. natural data In cloud. clinical We known platform XXXX cloud-based as cloud-based exactly we of cloud-based the our as CDE-as-a-service led we we We

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to complex assets enterprise legacy data of healthcare the an industry-leading to its primary industry's data health set often elimination companies reduce clients all and we from supplementation like data otherwise their source other structured offering ecosystem. truth Lastly, in datasets, and aggregation the translation and empowering de-identified providing Quite is clients organizations, of disparate operating about XX healthcare cloud-based source our largest as January the their the own costs with of introduced audiences from provider data applicability healthcare in supporting data warehouse we unlock exciting offering value announced multiple MOREX organizations environments. and pharmaceutical Inovalon's data of of plans, on this data healthcare, of unstructured large single Registry organizations

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high their cost design across plans spread for with complexity catchment member and Pharmaceutical companies wide patients areas. high outcomes can health based contracts

uniqueness virtuous depth the increases. delivered set forward. Inovalon As they and data do this expands be takes another and by of effect The the able step network cycle value to and

see this our in client You expansion our of the and base datasets.

increase billion respectively. patients year-over-year medical unique million XX XXX XX% than more an events and with of XX% Now and

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our financial leverage strong performance. nature growth the also Given into translates of not also resulting but strong strong and stickiness only this platform and operating

XXX new In the logos These counting with existing our driven XXX,XXX base. XXXX expansion revenue. more XX.X% of logos our annual successful and added those than we revenue our client contributed a added sales only base within new expansion XX.X% in to expected balance a of was through client

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of new of the and examples both land strategy XXth of the fact incremental were Inovalon but were both XXth on multi-year quarter In and In execution. of January also cases meaningfully expand working announcements clients examples in platform not they meaningful fourth the the with added solution had begun and successful only capabilities previously engagements XXXX.

innovation. on am that guideposts are coordination Number expand And what great enablement is three reiterate lead of become are these and and proud growth. throughout we our two Number there layer. the three efficiently. precisely this I achieving. to To strategic teams and report one Execution takes many three number land

to the I We am have to team. energized thankful work great opportunity are and a have truly them. with They

the though capitalize this it value us. before continuing to that we the of opportunity XXXX that much and on is Together a always expanding in are huge As look resulting Inovalon are know to we shareholders. performance we forward XXXX. with is the ahead proud is clients in seeing for that we we execution our We're work have delivering and and for strong the pleased its performance

me Jonathan? to review allow and the turn Jonathan that With of call ahead. the quarter to over the the year for outlook our to results

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

at solid and revenue quarters reflect First another end non-GAAP within of of guidance previous with EBITDA high ranges. quarter the fourth or EPS results our execution financial the adjusted

reduce our and cash guidance based reaffirming provided reduce shareholder to Second, and and net annual applicable our on flow and expense generation XXXX revolving capital which and will term reprice return. February loan increasing we our ranges. cash And facility net GAAP and our creditworthiness revenue, guidance our third, in our guidance previously credit EBITDA are interest announced operations we increasing margin to of the cash increased expenditure will and income EPS non-GAAP adjusted increase by ranges are XXXX able ranges,

XX% turning of XXXX. and XX% of a compared Now increase to quarter was quarter fourth full platform fourth in XXXX our to fourth year Fourth the revenue revenue organic XX% results. quarter to $XXX.X grew year-over-year. revenue Subscription-based an quarter of million,

in million adoption in The by an strong from quarter of increase existing of revenue revenue Services the increase in revenue an million legacy remaining with from platform XXXX Both $XX.X fourth $XX.X quarter X%. million revenue driven represented customers new continued was reflecting of year-over-year customers. of our organic increase $XX.X revenue offerings. XX% the and fourth revenue

Full which $XX.X from XXXX. in from XXXX driven customers of was and revenue revenue $XXX.X range an revenue revenue of November our new XX% year initial customers an $XX.X million was X, guidance organic million The growth contribution. in within on and was million in increase by existing provided XX% $XX.X revenue million year-over-year increase increase contributed organic

during payer, grew life our four XXXX. organic revenue verticals at vertical each all and markets XX% at pharmacy greater sciences or our Looking of provider, growth

XXXX our revenue top customer XX Finally no client with of we or representing continue of customers to representing revenue our more. meaningfully XX% with XX% only reduce concentration

of in For by from the comparison significantly metric reported customer of concentration this XXXX. XX% is the revenue down company

represents sales record. million, quarter New an the in sales $XX.X a ACV during XX% quarterly and at a record of increase year-over-year came

ACV an Fourth million was XX% increase sales quarter year-over-year. $XX.X XXXX of new platform services or excluding

year-over-year XXXX in margin Turning increased XX decreased gross connectivity Gross to gross and primarily data margin, employee of by XX.X%. a as quarter investments investments. was a basis margin solid points fourth result

million, points and increase margin at in quarter of fourth which fourth was for in marketing was and year-over-year. revenue of gross the XX.X% the increase an $X.X XXXX line XXX million was marketing Sales of Sales as quarter year-over-year. was $XX.X basis Full-year strong of an a percentage year-over-year. expense a XX.X%,

compared sales of million and Full of marketing and XXXX expense marketing $XX.X X.X% revenue $XX.X or year year XXXX revenue. of X.X% full sales was to million or

see to ACV sales attractive in continued record strong in organic We as investments growth. marketing demonstrated our new engines our our fourth-quarter sales and returns quarterly on and

moment on I Now to spend like profitability. a

our XXXX From deck connectivity to sales of and As able investments supplement allowed the number than to our earnings XXXX has in highlighted our business our expansion and XX automation the our in reduce headcount after been in have slide reduce QX architecture, us marketing of within and cloud XXXX QX to in model. engine. more net positions personnel even company investment significant

profitability continued operating more stronger platform driven and market mix a reduction expansion. progression a pricing and efficient This of continued environments necessary together product technology trend value headcount with shift has

grew points of For EBITDA fourth $XX.X of $XX.X million, notable or XX% XX.X% the for million quarter a consecutive an year-over-year. the year-over-year. an increase quarter XXX margin adjusted basis increase a to representing was fourth EBITDA record Adjusted

$X.XX XX.X%. Full $XXX.X per period. XX% XXXX of net XX.X% $X.XX, income was increase non-GAAP year XXXX year adjusted point EBITDA full or during adjusted XXX% $X.XX which period. compared income XXXX XXXX. XXXX compared share million, XX% year was $X.XX net margin EBITDA which increased a basis $XX.X per million full from ago of margin increase or of Fourth year quarter the from Full Full non-GAAP to year share was per an to share the adjusted represents XXX year year increase EBITDA ago was XXXX an

by was year or after or for operating Turning off $XXX.X of the interest which net provided full the XXXX XXXX interest net million $XX.X in also is of is after the in million payment cash million the net flow, and million payment the in fourth $XX.X which activities of payments. $XX.X payments cash quarter

been net the which cash by of full receivables certain timing operating year was since by client activities collected. For XXXX the account impacted provided has

collections. a result guidance XXXX $XX these to increased operating reflect has company account approximately cash amount its for the the flow receivable million corresponding of of the As timing

cash free an cash was year as was $XX.X together million or compared $XX.X Pulling in XX% Fourth and increase of full million. $XX.X this the million generated in quarter Inovalon in flow $XX.X million positive flow XXXX. XXXX, million $XX.X of for to CapEx free

of and the to outflows of s Notably cash Inovalon's incremental payments. interest capabilities profitability model. flow million generation Inovalon's free flow cash continues in cash was after the scale highlight net business cash $XX.X

and CapEx earning full-year XX on found deck. XX and of of results details slide can our Additional be supplement

sheet the balance Inovalon to build the company XXXX continues in on our Moving $XX.X to financial In repaid in million credit position principle strength. facility.

by reduce leverage to year repriced reduction subsequent basis on basis X facility X.XX the ratio falls point Additionally XX further to and rate automatic when of loan reduction both to to XX margin credit end our points lower. successfully net points to XX basis revolving the a our company or interest term with

cash rate our The the mark downs facility cost remaining of additional interest reduction the $XX.X scheduled the mark over interest principal reduction of represents excess basis $X.X no point annual point at cumulative pre-tax voluntary base savings million early life margin million in payments. assuming a XX $XX reduction the of and at pay XX million

exited with company XXXX and debt and deferred any had million, facility. the amount million of company fees and total The $XX.X $XXX equivalents the cash million reported discounts drawn from of net balance $XXX.X financing cash outstanding debt of of sheet credit million, issuance $XXX.X revolving not

X.XX as from defined approximately position to debt year-end. as X year-end our at was net QX and of XXXX net $XXX.X agreement end ratio the debt X debt the million at company's decreased leverage of within to to X.XX the result a As

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

the prior revenue EBITDA XXXX reaffirming ranges For and full adjusted first we of guidance are year expenditures. our for capital

by collections Second, to our impact we And debt are on our reflect timing. GAAP third the impact guidance the are receivable for per net provided cash the share net to $X.XX accounts operating increasing repricing. income we and by and company's activities and net of non-GAAP GAAP non-GAAP reflect income positive increasing

For first quarter are XXXX providing we following guidance the ranges. of the

and $XX $XXX.X previously $XX Adjusted see million net $X.XX. year-over-year $XXX our growth on details our we reflecting per of million for supplemental to to today's non-GAAP million We earnings XXXX XXXX of you ranges. million refer release of deck revenue guidance to during fourth-quarter For revenue diluted share to to update. to $X.XX at XX% EBITDA QX, encourage X% in income earnings as messaged organic more our

fourth more reflection Q&A to strong and our that are XXXX company's quarter The full the we by back Q&A will I operator and turn of year Keith's close over going same to the the their With reception was in XXXX. seeing comments. capabilities session. market of Before and echoing the conduct a by me let our of to call

Instructions] Sandy with first Thank comes Draper from you. question Our [Operator SunTrust.

good appreciate like competitively question the a board the and looking data a I first on much guess afternoon. very across deeper product looking just when back Keith update little I maybe are or Thanks bit the customers data Inovalon the other to the data or bringing Google are table like the at like you that have? of what don't providers and competitors is that the guys Amazon what providing some think healthcare specific you

Thanks Sandy. I question. the Right. Thanks for appreciate it.

the I'm reputation might Sole you provider work sure. to acquired in A solutions Wall of you at the don't he lot Street from hit global head Investor new you known welcome I specialized for by Investor if cloud-based experience Systems. moment comes recently Metadata, want him from to It is know our pharmaceutical the was Relations Hulus a his marketplace. of Before vertically us of many question from Alpay. mind I take marketplace the to to just Relations, Hulus

us join Operating have officer. and and Q&A today then the We're very Revenue our with Capitel also is Jason Chief for team to excited him

Now to Sandy. your question

whether the whether pharmaceutical So in data acquired health be whether the time. different accumulated initiatives large be having marketplace and in of business it environments several as those their provider well multiple the it health marketplace sets from data systems same different several it over finds enterprise hospital pharmaceutical in they've years each purchased be parts plan as perhaps arena, over like, the perhaps database themselves the that plans companies

their not with whole typically cost data landscape. analysis operate data environment cost enterprise traditional do to individual that healthcare being do allow the carry maintain to across marketplace them warehouses point and The to

their be So The organizations point because and a cloud-based of over aspect start you have a blinking it other takes there but out by patient data the place would have quite create Amazons solution previously enterprise holistic the environment change source starts of or silos data the also in of players that the put for systems as us adding in of matched notably disparate don't data the capable or that to into supplementation. cloud the of to with is that like aggregate of sprits, truth to data from a which world, lot marketplace. more from other those base allow first enterprise a connectivity longitudinally data the our we other Googles industry to disk data represents the and and provider together the data base it world those single

get more capability. marketplace to from players able We’re that squared other of the that none the registry, have in the

medical then some patients or client. million down billion that events XXX information the worth XX of for to data, are providers, XXX,XXX imperative so able fill-in So

to then or go previously wireless they But data healthcare world have trouble capability data it import step us on into layer that allows data of that input the we it we in that board natural of had clinical data. linking and with both through if processing connectivity further, impossibility represents or did longitudinally to bring that structured our and clinical a on they and rest the organizations couldn’t unstructured bring the board language

whole So able we're as want apply data capability that fast give individual all able together that a it. use want done have to could to compute data in before rapidly very bring common fashion, they on reporting faster to analytical common cases than then power minute's rather capability, set rapid basis, We're across set. to meaning of a that hours and top on them they things those

with cost the elimination benefit legacy enterprise of So number as variables there systems. of their the to the as well savings

Great, Keith. then helpful And follow-up. that's really

like payer after side X-years the revenue. XX% given a sort revenue on year declining you my numbers. quick of of Look, the had that's about looks calculation, grew on payer strong Just and obviously

and to just sustainability really longer-term. going trying you thing business just it's one of or Was about or function growing of rate there to to still and that any product think about payer driving easier had type think the one trying it I'm double-digit of the was that moderate, any a just is the some comp

the like the to nice what's sustainability see on payer Certainly the Thanks. improvement of side. revenue

or Sure, in products, same the connectivity, looks have four not quality warehouse the solution or a not the Jason well. the sustainability resonating two his put NLP. products, the uptake marketplace our different three five now are visualization data as out team and that one but seeing across really products not We're together data salesforce many in great, the that the products, are risk marketplace Really if multi-product not Sandy.

So don’t what want what growth going out we're is good to the but year what except to make that of put predictions guidance any for we really be we feel rate seeing. about this

thanks. great, Okay

Thank you.

with question Our KeyBanc. from Donald next comes Hooker

on good to you touch, thought. the SaaS of revenues a or the Great, afternoon. I the breakout focused I some but lower in curious think revenues legacy were know revenues wanted terms growth bit as the to little there's there I element of of seasonal of than low. a detail very wanted the revenues. But the legacy I

revenues. business? I total you down of legacy going what's the booking about into on that eventually and fade kind think update or that how of Can maybe X% of talk side the you said the is year next

is precisely but color. to expected Don, question. let Yes thanks the Jon Legacy hand to over where you to it more give be it me for we

we of and kind basis really X.X legacy million growing year-over-year Don, consistent about quarter-to-quarter. a On Yes. had

obviously And in XXXX revenue messaged It's legacy that really guidance. have being to those contracts we revenue by signed base. streams. in are subscription repeat we at revenue strong before, just expect X% XXXX we and of growth As our our the offset about same we see

add a to on just little of maybe bit color And that.

we've same at but the as that nice for been we messaging years stay now, the company clip. basis piece a absolute expect If obviously of you is of the rest on roughly an a couple to look growing

solutions So piece in percentage market see not anymore. on a out that selling basis we're going you're the but legacy to decline

through we renewals legacy that of piece. as message go had did We

continues hang So of the of that's it's at by number the but to company design. grow to in tightly kind going similar absolute very there but just rest a out as

sort services about about is XXXX? I bit little earlier of non-core more Can stealed look the line, into these an love time you I'd And life over Sure. then then, maybe that to hear sciences. how talk we and also a some and into that's of element see there as trending XXXX areas. there and

Sure.

the has of cloud some made So out have implementation But you services and fair just from and our and clients the in questions quality support legacy on that in support. are amount work foundation a as there also services Avalere. that there point up there support is analytic overall also integration a help

category. is that sitting There those services into so a X% of or fall

rest XX% few had have business full-year in different at for So It's we the it's consistent with directionally of number. the the It things. mix We in a a growing grew XXXX a of the same alongside. and roughly again XXXX. it

services implementations of Everything as we the a those match work. with up other lot our of

our So in that C-Suites a it's large of the in great a proving group implementations. processes the complex and the it's proceeding marketplace, and number helpful thought strategic clients and has very introducing more supporting larger the having in of reputation

one Super. question from last me. Maybe numbers

I know up at guess marketing On that stabilize point expense are seeing ramping scale and few side, staff quarters? going the that that you'll do marketing and that some been line a have on When pretty the terms to maybe XXXX to particular and to is start and that more in start start is scale you the sales you in you would aggressively there to or that next going sales salesforce seeing guys be personnel of I happen or line on think line. beyond going

thanks, Yes This is Don. Jason.

for in will value And try of it maturation delivery and business and So the if per optimize productivity basis can head to we parts and different coverage we process. density a on basis innings manage the different a in where game of clients. its creation you of the are

say in inning So probably all of the I'd payer those so. six effect. we're into things or in taken the are business

in we're probably market pharmacy business, similar In to an how of innings we we're specialty go provider in the earlier the in a spaces. probably side, maturing those in think I space.

have we approach about place people add and And the clients. theme so, take we're disciplined a we in great driving our when we value for really that's really excited

Thank you.

Jon, anything that? to add you want to

see able EBITDA to to that we adjusted continue Yes. nicely like The is marketing, our add sales only pretty grow investment as thing and year-over-year. still I we're to

though even that over increased of still over able we've So margin had line. adjusted been investment points we in improvement basis XXX our EBITDA grow XXXX, to

And with in that the we are very pleased quarter sales able fourth produce full-year. and to the growth

Got you. Thank you, so much.

Thank you.

Our next question comes from Ryan Daniels with William Blair.

evening. Ryan. This Haase is the good questions. Yes, Jared for Thanks for

Just on like revenue outlook, XXXX to it looks of sales quarter. XX% you guys X% each the cadence quarterly the reiterated growth

there's As kind just the curious of I'm have could cadence? expected unique related sort at with issues you with the or noise pipeline associated that of deployments timing any that anything cause of look today, you sort that if

stages. Hi, deals Thanks for instrument and right. XXXs pipeline's huge, of XXXs the Look I its Jared. question. on our got XXXs mean and XXXs it's and

demonstrated nicely exactly when that. we they control and XXXX exactly we and good to for have very close feel So hopefully a that cadence good they implement. don’t in when as But a

see to our but great again really important but right and of always client's goals their year timing. occurring Things what the to desired this listen And day most Jason? the we to And going end us you, are the client. are that at we're now look

Yes.

our year for things. think pipeline real being well, right our and after as making And doing whether as I Keith. the we're ahead it. about sure predictable mean, predictable clients it value I delivery and good, being on said shareholders good the excited Keith on feel we looks get we're to a for the stated, you focused business

Should one maybe on landed appreciate more expand to contribution of going then between customer sort existing split logos the opportunity the new kind roughly there. And XXXX the expect I outlook. it, XX/XX Got forward? continue color just the versus of from we

Jared. people. Great encouraged question, historically We've

think XX/XX we're cross logos. and up it I split, growing new faster of bunch we're XX% because sell, as landing of a sell. seen We've new a XX% and

the XX/XXish and a in get period. that bit saw most You little recent

think from change we from right longer period. was But excited thinking and of shorter customers about That seeing way wouldn’t XX/XX more that we to more both still and really term, about is it because XX/XX think the our strong. really a but we're new

I the it. color, appreciate thanks. Got

Sure, thanks.

Thank you.

comes from Sean Sandler. next Piper with Our question Wieland

much. very thanks Hi,

on I think or clients. insight Could a resonating ACV that what products break that XX% provide. handful you you market, said maybe it's little you is and down by and fish a clients across is spread of where bit it can whatever detail new are big from a more numerous

Hey Sean, good evening.

new So, for XX% revenue, the with on on of revenue a growth year. clarity the

revenue was logos new logos, years less is Client the big XX from out half it balanced the existing was of growth his there year prepared of So phenomena is what in from remarks. a no number pointed Jonathan than fish as concentration of ago.

with sort We any don’t --. know down of XX we're if clients of and significant size

XX%.

X.X% obviously XX top an so. on average clients or book, XX%

XXth the fish far few of think of the the And you XXth head. was I and top we're the of there of give in couple two as really as strong uptake of a the my seeing growth. but January of products. it Look, a big in announced to no deals examples, So cause quite colorful

previously them existing of customers. were Both

client the a signaling quarter XXXX. One might have Jonathan platform the of pharmacy quarter'ish just first them the one in quarter that or became been of but bought first second early.

early So in of solution first XXXX. pair a set solutions on classic they bought the

that at And they fourth based an the Healthcare of one cloud in time, started client announced software versions we those started platforms. in version with They or Lake same side the pharmacy the of bought platform then Data other solutions. XXXX. 'XX of with larger the our us quarter on to by that example, side. earlier the In They roughly XXXX implementation a went over

they which is Healthcare XXXX, they fourth them. a or then the think bought solution in I larger four or Data 'XXX quarter and in implementation of in then for additional 'XX two Lake solutions implementation bought three And the

So we're sort we easy. seeing of there get which new a lot to try logos of in that scenario both

we and work easy a Be growth easy coming from, be that. see to then from implement, and be to do buy job easy the with of to lot do

Jonathan, And about free give to XXXX you. care on thank insight flow some do cash you Super, guidance? us what

Sean. Sure,

we looked flow range a So cash cash [$XX we've $XX was guidance as given guidance $XXX at is to million a flow million for operating range our there, free million]. and million our CapEx $XXX

there difference the be will cash flows. So our

Okay.

be there. quarter? won't What were there the anything the in DSOs else So in

XX slightly it's DSO, days. around

thank very much. Okay, you

will question Thank Ricky you. And our final Stanley. Morgan from Goldwasser with come

Yes, hi, afternoon. good

having questions So of couple I'm follow-up here.

innings it does if we that a and sale in how sixth think I think about about, personnel about touched mentioned reach infrastructure the and think kind now earlier of payer the all also the should salesforce we the we you it salesforce the use expanding and across long of to tech in pharmacy you're bit about XXX take sale you that earlier salesforce now you're first on like can Considering about have that for the leading you that that with customer the First base? little the but and provider productivity expansion think ramp should we full how side. is

the for Jason. is So This question thanks Ricky.

more getting build you those smaller CEOs of that CFOs somebody business and So happens you relationships segments happen doing things. and business about roughly the of multi-million would solutions suggest XXX have board and month, different and to do and do units transactions much productivity size to think with, sorts you deals up about and I to than different rapidly dollar our buyers really if provider per very that the you number think there's those that in

to on we or to the lot a the maturation faster It's quarters have payer about team full the of we feel take three productivity time and there. process rep through on we've already four gone provider that productivity side. and that So a great might

the have pharmacy just it's I experts think out we in particularly then want world experts for specialty things people don't side pharmacy the nuanced are They and to and those And you going the selling. on we place. very pharmacy in specialty in tech specific that that marketplace need are

business bit that all expertise of the in those payer specialty sales marrying sales the units looking areas but time things and in a a seen confident the all we're the little we've we're productivity those side. So year. across solution the seen We've with and of discipline, take the for pharma the on of accelerating coming of but actually in we're process productivity productivity DNA

revenue the lake ACV]. provided that and also the in in one [XQ your data it Okay seems It that included like guidance on Was contract. earlier? you the follow-up hit

So a The let correct okay, the I also asking, understand in revenue you're guidance? in sure make you're question statement Ricky. That's me ACV. QX data yes it is like it asking our was and

guide? in it Was revenue original the

we in original Was time it revenue in guidance. already into the got we or yes to we By good the, things where year knew it was the had stood. insight that

that we there when guidance investment half, making then one-quarter when of half second year any color think of and provide earlier Great can about the that level Okay. the you're you versus kind the we versus think second of year us? in

When talking operating say investment you you are you investment? Ricky, CapEx, talking are

the of implied the right for the think if we're to operating guidance rest the throughout about quarter year. seems expansion because just see More is first we through versus going the in margin side year it the what's again

you about it Is So driving year? think how it? mix the ramp to customer additional the it going what's that's the throughout Is investments?

smarter year a of walk set large looking a So to over clients little it we a give very at here a, those hand I'll throughout layman's the but to are description. number on the it look as at onboarding year. growing we're that we you there's and someone through bit of we're the

looks those. and this we're getting just We amount on that's implementing spending closed $XX.X systems yes them in a So time quarter on record quarter good energy and also. for prepped the

So we right these and staff capabilities. out personnel implementing the clients them the with sure have we're on have making

how here. is was everybody a those night thanking you here are just other, we'd each and now those have tell and stood can't as with do here if we all revenues to we match. fantastic here operating But made great team but us some fantastic a up get that is good provide operating XXXX I many be part the as for earlier it people we job expense how So doing all the implement John? in have

to a the you're expansion just investment, margin throughout operational the where coming is but where so right. we investment seeing little Ricky, year the at Yes obviously is leverage hit really the have

you the QX line have continue as So to bottom we you're see top-line to expenses QX and just what continuing the and that our looking the see that's we as we manage can on expenses still seeing. grow where through expansion from the that's

operational contribute Ricky in only and NLP our nicely it Those leverage thing expanding which other those to continuing quite and expand The add XXXX. that all of are efficiency on initiatives is we're to XXXX. to to in operational still implementing all connectivity, you expand our applications; saw here continuing

levers the company. tools growth to more profitability the the us accelerate us have we and we to do apply allowing giving So to to that the additional of decide realm continue income want where more in are

very good and Thanks year. quarter and a on congrats

Thank points. that leave I Thank a and with close Ricky. before wanted with few call you salient I you to just a

opportunity move really we think the are $XXX meaningful a a I keep they world. this clients as with thing important mind in empowerment a measurable of First, to innings to cloud into is early huge billion a in value data-driven opportunity, healthcare help our

is strategic research made investments and sales and of second fruit. them in you're The bear seeing marketing and we a lot development the

performance result record a this. of seeing as You're

You're million. seeing of ACDS $XX.X

well third connectivity. and new XXX our really platform its doing added. the continues then company improve are scale its continues seeing in efficiency, Those You're the investments and improve the logos to to Inovalon very sophistication

the am pleased following in flow is line. XXXX profitability here I This in cash momentum the seeing performance to leverage operating certainly bottom XXXX we're driving our right more and all with strong through. and

your and you Look we you Inovalon very on your for forward at on interested to speaking night. this for So quarter. the next good evening. in Thanks remain plans laser Thank focused execute time to XXXX. the

call. for this participation. today's Thank gentlemen and Ladies concludes conference your you

disconnect. You may now