Inovalon (INOV) 4 Feb 212020 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Inovalon Fourth Quarter 2020 Earnings Call. [Operator Instructions]. And now I'll turn the conference over to your host Kim Collins. Please begin.

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

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

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

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

measures. non-GAAP presentation Our also certain financial includes

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

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

differentiation their of to thanking and everyone, business is our of particularly unwavering for the and focus efficiency joining you, to environment well to client as both the for seamlessly commitment across and employees value call. impact as during the all I through. a hard-working The cloud Good start driving entire durability the want and model throughout Thank Inovalon the shining XXXX, dedicated country Inovalon work of you remote and the Kim. capabilities platform and pandemic. and organization thank by the transitioned evening, of

the Turning to full But COVID We and, capabilities already our only unexpected to COVID legacy significantly throughout Demand for need further was data-driven climbed momentum. arrival then impacted the capabilities. significant the platform XXXX sales. results. year and QX entered with our the and and parts and accentuated of But new XXXX benefit our business. degree, a year cloud-based demand climbing of for cloud-enabled our business awareness of services lesser tools with

have sales As implementations. were so accelerating, our too been

rising Now rates retention quarters of view. strong leading growth sales, renewal of is the subscription-based strong coming rates, multiple into multiple after layers client the compounding of new and edge

total revenue. XX% at in platform revenue high of QX came revenue provided growth to and $XXX.X XX% of subscription-based million, XXXX was our QX QX sequentially, XX% year-over-year reflecting the very This million, from XX% XXXX. Our sequential on end record QX's up XX, equating $XXX.X a XXXX. October was revenue range at

value profitability. and achieved revenue market our being clients, greater our the translating for platform As increasingly operational climbs is reflects acceleration and pricing leverage growth our into also impact

all EBITDA within very from leading strong of as of we in contributions, we results pipeline are margins XXXX very and is fourth units, growth the business is completing What today's while seeing of the increase. reflecting X pleased their seeing sales strong with the that you're resulting quarter, positive a of edge large for the with quarter's momentum sales new implementations And many growth demand QX record, was of sales sales $XX.X a fourth even successively the sales, closed XX% across quarters in quarters you and adjusted layering reflecting vertical preceding XXXX. quarters business And incrementally are now a XXX was data-driven year-over-year. progressing acceleration to the an seeing in multiyear health which build of also having of of significant I'm care. market combination additive $XX now reflecting cloud-based provider record driving time contracts stands platforms execution, layers accelerating of basis previous required demand new the EBITDA resulting meaningful quarter, Our long ACV revenue million, expansion. translating XX.X%, expansion resulting Inovalon to subscription-based year-over-year from number and to a profitability adjusted strong is while $XX.X than a points higher nearly set hundreds and today such leading empowering million the of now term in acceleration million of up the successfully an only tell earlier,

behind similar heard layer, inside that care enablement of Salesforce intel their succeed of the the to providers, empowering Veeva, scenes me Snowflake, You've see the before, care. we say to philosophy as part ServiceNow an Inovalon layer to is Very following the layer, Amazon, enablement are of everybody's how health empowering be health too, technology customers vision Microsoft, and an data-driven Inovalon's data-driven solution. being respective so enablement

of more more As primary to, providers, the XXX facilities million and real-world than compounded care clinical than XXX,XXX more more more annual identified a than Inovalon growing than at billion patients, than data X the million clinical rate platform of XX%. contains of leverages medical of ONE events, sourced and growth massive of XX XXXX, end connects health amounts

across provided impact highlighted. U.S. along health moment supplemental our with of and a data we deck can asset opportunities deeper On research, several the take me see our you critical Let and release, into sets ecosystem. Slide data XX cohorts the care dive somewhat of the intervention highlight clinical much clinical to value informing

few data. our a examples but squared source, million more the they serve. As the in areas patients patients than marketplace of more patients, patient-specific of partners and no XX set longitudinal than highly massive There the the and more million where patients linked primary end included These can million than of XXXX, valuable other registry XX these Inovalon's for more of Alzheimer's. matched that oncology is aware data diabetes that inform with we're X data data and engagement company connectivity differentiator, impact our health of care. are within a assets an has care, health of layer value data-driven become is important to billions and translates works economics focus of note, health the within our the Inovalon's the as for a enablement also not data for the increasingly its independence, that highlights the company dollars this strong improving This empowering Of clients. our our capability into ecosystem, and is data-driven U.S. health aspect of of only quality but care clinical reflection and data part care on

disproportional see our of into The model is we of million coming increase of XXXX our previously see and resulting to and announced of important a we revenue profitability. with in SaaS XXXX, renewal add in EBITDA many is million, subscription-based client revenue pharmaceutical $XXX XX note, base top the SaaS operating many strong to expanding profitability. $XXX XX% million to thousands and clients, grow Incremental to top million approximately is XX%, adjusted profitability us large XX within we business XX layering upon cost client companies now existing we flexibility systems, margin thousands of the increasing our profitability adjusted margin growth. a of contracts XX% further significant. XX% year, rates, XX growth in foundation and strong efficiency accelerate of actually of EBITDA totals translating EBITDA sales, contracts, increasingly expansion and expansion we gives set durations coming retention see rates, leading a a significantly and adjusted expanding cloud-based the strong record U.S. Our XX% XXXX, into to to accentuated is in the the XX%. at driving including to by and $XXX EBITDA adjusted sales U.S. upon XX top health year-over-year in provider see global based the plans, further all large and to beyond the contracts, our as $XXX guidance counts of the subscription-based for of rising In profile very margin, leverage expanding XXXX. representing the XX membership of This An contract would

investing line revenue top we Given we XXX incremental conveyed, growth. that our as that be basis will an points have accelerate into further factors

basis Specifically, we XXX points incremental will incremental investing profitability points XXX points adjusted basis of XX into our basis line. an acceleration and delivery initiatives, be EBITDA expanded to to the of approximately sales leaving an further innovation, go-to-market into fall and

the is here growth these within this believe with and pointing assist the are many XXXX through few been slide X included factors Slide Starting have the subscription-based important financial sticky a years I'd seeing relationships that moments like out into increase growth, or come. to the walk point of highly we layering an compounding We that base foundation, we are community bottom as also deck market but why multiple the we of the with contributing at just thousands to to have our not multiyear, within take multiyear contracts. accelerating factors. supplemental a in to for As in

subscription-based favor. dynamics membership are strongly contracting As are design, monthly these in our a patient model, utilizing contracts in PxQ

we of XXXX. the As conditions. you rising are serve are XX% in health a population need patients strongly within between chronic and increasing types living more count, longer care care are in projected that in of with know, those number and at The patients X%

market in model platform increases to this, our is the in On rise, to value top these is our pricing strong clients. PxQ our our Q the the power healthy due As of revenue well. memberships as delivering

PxQ we P these new our such, seeing year. in which rising. in the pricing each being also resulting and strengths, are higher sales. As strong in are within to new top see escalators, added We auto is the equation our book On business, of contracts, of established the contracts this in

implementation adding incremental business our they're of As into is coming hitting to yesterday the top quickly, you've success sales additional rising new business prior what quarters online, sticky long-term records, already and of an resulting revenue. translating of the on And expanding. undergoing sales is layer the seen,

way we are the up contract our seeing terms. curve, expanded compounding Moving

our of While growth, renewal X and them of longer-term a more this the year and increasingly to even customer time dynamic to visibility also client, standard, us value of does which and agreements. we only but our of compounding be spend to experience, delivering care seeing X year to durations are Not fantastic X add year, taking energy, our X allows also contracts it year, used X further year dynamic seeing is and successful rising, strong. that retention with And together. fact, we client have the to are the which we persistent leading net supports and in then sets, number capabilities grow time, of technology At data client, a rates for we happy in the are market products clients. available same ecosystem expanding always investments and our into continues our of connectivity translate the

of in customers respective ecosystem. that care turn, can our lead then their the So health areas in

seen have of during into into and is large, offerings our more the more infection alone. which new of cases, top stream of that name already bringing market, new watch, data In to depth greater counter sets each U.S. of also that adherence resulting were quarter accelerate released all plans, And a consumer few rather capabilities in going increasingly were success happening X client existing upsells. clients, us cross-sells clients us up expansion In is telehealth driven existing for delivering value the is health represented for of new and vaccine well. more support awards our market. of awarded to clients, base translating modules, virtual meaningful the with pace that gateway, the and both client providing many and doing and these XXXX business ours, beating our of client API, the solutions, in alternatives is differentiation alone, sophistication is And even expansion. You health resulting from What XX XXXX. fourth our clients coveted us analytical our data XX.X% XXXX the the task in driven in only logos numbers. also which with other XX.X% innovation Inovalon sales value in delivering on value in and to position marketplace, succeeding the you our our value your success our can of a contributed the its comes the company's in sales but Inovalon longer-term bringing persistent focus quarter-to-quarter is base. the company's out not sales our of leadership And is the something and and impact, of very is expansion see XXXX, of showing and

clients. of the but pharmaceutical years Inovalon see and are top segments growth we working In as setup when great the of as adjacencies to benefiting the that And and serve Jonathan the strategic XX the the XX many double-digit to is geographies this delivering are me ones not Boldt, our all of and and companies, detail. more ones we XX expanders empower growth XX multiple the care names and of in global Inovalon health just hand XX guidance summary, consumer all payer data-driven to very capabilities the significant by it the serve. to walk of at retail the with, companies over all currently global please U.S. for through large-scale into strategy plans, XX comes for see we companies, XX can which of not how the of of announced, You increasingly the CFO, growth world's outside care a announced, which profitability tailwinds, in are compounding and the X launch into that, they with top strong decisions of other include from which financials Jonathan? We top allow communities to the now call table of revenue health the systems the is leading ahead. health XXXX

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

income financial we that non-GAAP which the the per we same revenue high October First, the net time. came at the came at XXXX, end results on share fourth quarter's accelerated in range and reflect our growth guidance diluted XX, above of range provided provided very

Second, adjusted flow operating to million EBITDA $XXX reaffirming million. to for XX% our cash year year-over-year calls XXXX by and announced XX% XXXX revenue XX% provided we growth full previously are $XXX our to guidance, net which to growth, increasing XX% year-over-year activities organic

which XX% are year-over-year organic EBITDA XX% also adjusted providing growth to we XXXX guidance, Third, first year-over-year revenue growth. and XX% reflects to quarter XX%

the and scaling demand is on and to beyond. and strong, accelerate investments laser-focused are revenue and prudent our growth we strong increasing, seeing XXXX designed we Lastly, is momentum execution profitability are further as making continued in even

$XXX.X reflecting XX% more our million, record XXXX X% results was Now Services X% XXXX, in XX% XX% of Fourth a revenue reflecting equating quarter million, turning fourth for fourth sequentially XX% fourth the growth platform and of quarter remaining was year-over-year, as organic and total revenue. $XXX.X the XX% growth to to quarter quarter represented year-over-year. expected. detail. sequentially with an revenue in Subscription-based increase legacy

very million, XX% New an was $XX.X million services, sales ACV, coming ACV at strong, increase at year-over-year. of during excluding in record the of $XX.X increase XX% year-over-year. quarter XXXX sales an quarter was Fourth platform or a new

year EBITDA gross EBITDA increase was of quarter at quarter in XX% in an Fourth points year solid of basis XX% XXX to XX.X%, with increased adjusted increase adjusted margin. gross to XXXX EBITDA year-over-year. Turning representing $XX.X margin adjusted million, year-over-year of XX $XXX.X Full came an XX%. the year-over-year. coming margin Fourth was at adjusted year-over-year, margin basis record of margins increase XX.X%, gross Full points EBITDA an a XX%. million, an a

XXXX or be XXXX. the continue Fourth our the and per ago income per efficient XX% margins SaaS XXXX compared year period. increase XX% pricing net was in shift full is to and per non-GAAP year income in which revenue increasing from leveraging investments share non-GAAP industry-leading of $X.XX, of cloud-based Full $X.XX architectures. was our a year by power subscription-based increase net an of during an $X.XX $X.XX, quarter to share our share to the increasingly automation offerings compute connectivity, market, positive our software and Our the mix in driven the

early Net fourth $XXX.X of flow. XXXX in expense and to by million, cash working after was the of company capital investment interest XXXX, cash timing operating quarter million XXXX accounts in to which Full or certain provided full the of for which is payments. in cash of this the interest in of XXXX. of million the Inovalon from net positive $XX.X by and CapEx client expected together, cash capability also which year guidance from increased and of Pulling $XX.X the scale operations the $XX.X of and reflect in multiple collections, $XX.X these implementations. activities part million after was payment XXXX. XX% Turning receivable XXXX full flow million to its year flow net occur continues the quarter Accordingly, or payments, to flow is million are the impact strong payment company decisions items. flow for highlight platform of was expected flow $XX.X $XX the by $XX.X increase business operations compared as and to $XX.X an free of $XX.X cash free million Fourth for our expansion in the the million Inovalon's to in was of timing cash as the million, generated invest million large cash model. or year profitability generation XXXX, of impacted continued

cash the as position balance to company's defined strong. QX December position as million The of to leverage was XXXX, reported the debt net million. XXXX, and The improvement XXXX of from debt the sheet and a and down equivalent deferred X.XX:X year $XXX.X fees, X.XX:X cash balance sheet. net X.XX:X our within compared million. as as third of agreement, as continued was from XX, quarter our end to debt Inovalon's financial of financing ago. $XXX.X Inovalon's of net ratio, discounts $XXX.X issuance Moving remains debt of and was

approximately a result our interest will of become reduce savings. below resulting payment $X expense of in ratio cash in will million which a As annual automatically interest points, by basis effective XX rate being our improved X.XX:X, XXXX, leverage QX

by outlook. updates financial me sharing conclude XXXX let to our Now

revenue, year ranges GAAP on reaffirming income And EBITDA, activities. and income and the net full net per provided we guidance by share prior non-GAAP our are expenditures. for XXXX, are net capital and the guidance adjusted increasing we For operating cash

will see grow growth to to grow will XX% XX% of will EBITDA will grow in XX%. to XX% to diluted grow each by metrics grow will will will XX%. by income XXXX. non-GAAP income such, strong XX% these by net XX% XX%. Non-GAAP XX%. to As by XX% Diluted And will activities income provided grow by XXX%. operating net to to XX%. Net net Net XXX%. Total XX% cash grow revenue income Adjusted

XX% $XXX first to business the sequential to organic to of guidance reflecting quarter to of $XX from QX $XX a million, of XXXX, is our diluted year-over-year last on increase Note a in reflecting come the years several to of For you be non-GAAP XX%. our details between guidance a share to that $X.XX, net today's release earnings increase We our XXXX year-over-year revenue at million, XX%. to our year-over-year supplemental to on $XXX growth more QX. with providing per for $X.XX expected And quarter to million deck are guidance of income we XX% revenue ranges. EBITDA XX%. million in consistent earnings usual to and over refer to encourage seasonality of Adjusted the basis, XX% reflecting fourth is

for to and growth will long-term announced by from previously the turning platform, leading into sales XXXX layered of going The Keith's acceleration quarter resulting demonstrated sales strong record Before comments. and the new continued edge demand profitability close echoing fourth expansion. Q&A, I Inovalon of revenue ONE revenue the market's

let conveyed and the in but Q&A we are have growth many With to expanding call now operator the dynamics, contracts for with we are years and the for me in are X, contract our retention X, with session. X-year back not strength XXXX strong marketplace renewals excited and only accelerating to of growth We beyond. over seeing we turn strong client already X with conduct and the durations growth XXXX also that, pleased the rates

Instructions]. [Operator

Guggenheim Our first Securities. the from Glen with question comes line Santangelo of

then seeing could remind should maybe Congratulations quarter. ACV demand? or better wanted segments which full big could the modeling the to as maybe look that number. cadence good give I the give this that's of bit you you a year, mean for dive to for are business reported a for ACV unpack obviously on was when the you I and your biggest I uptick the sense hoping a in And think equally your the revenues out a results. into ACV us into a flow Keith, number. I us maybe that, how that that Maybe was color year. about as at up the follow-up us any full we XX%, reported

Glen, the for good the joining evening. question. call, thanks and for Thanks

impressive is fourth different contracts, can amount typical So gain answer. slightly you crushed that, expansion sales. from part certainly, the time quarter units. right? types in And business full a different insight specifically, the performance a to year we of the just of in payer quarter-to-quarter versus both group amount the -- had very it of and a So from of takes of all nice quarter close during performance the had it of strong the the the Certainly, very

ours into significant As all of were continued the coming additionally, business customers saw from which gave XXXX. for business was performance seeing Glen, then we're And the that strength well. And is we the sciences of then coming group. XX% marketplace important across all additional XXXX, units mentioned, performance -- life very an already a strong just well, the XX we north X from an of outstanding point, as us of as year-over-year, payers, top whom

that provider to pharmacy takes sciences implement. payer start work out that Typically, implement your to your implement business. how during do much longer life starts quickly of lines you much more the and and than now you of of help work the that? some and some to How very translate year? So play how know, do into things translate As you that quickly,

quarter. to So from play things the out that same fourth signed in here see that dynamic going we're were

sales. quarter taking expansion. And saw but in now well of implement, cycle long taking fourth into top of while while, a the the a to realized it you Some some of that accelerating revenue we're on sales

prepared contracts now not smooth has about strength a the the durations are place. they how many It's how -- seen, in edge of with signing, It's remarks only of we was inside, are XX.X% already how because saw the was gave the quality A meaning leading names the a not It they it. QX much XX.X% those of today's the those amount some as on well, products our sales impressive we versus many contracts, of the the going contracts, over nature of large excited are growth already of But years quality that in out I you've was number out is about line, versus We clients. a that as new on quite fair sales coming we're XX-XX. building them. little at come. XX, impressive from have or of and was they existing of We clients that implementing. But hitting. have think synergy XX.X%. So -- even meaning

board. very that So saying, on question, I your new want addresses hope clients and existing more health Glen. coming we're seeing we good customers also in

And Goldwasser question Morgan the our next Ricky Stanley. of comes with from line

is Raymond XXXX quarter. the actually start with wanted Congrats to the on on growth. This one, And off I on for Ricky.

we the the majority various look we in from life life see pharmacy as the growth sciences. the XXXX the the of at So payer, pharmacy and that provider, sciences, verticals, came and

us? case or continue as you would to to Just will the to that be be we And more those rank XXXX, wondering, balanced? the for will be order growth look forward able

being on call. the for thanks Raymond,

you here accelerating call It leaders and from to very to sciences in that's said fourth them, tell race because pharmacy seeing that growth now, #X came accelerating Providers might sciences. in an doing accelerate on tell #X, here I aggressive it COVID ordered pharmacy And back little we rank #X, you and payer going life it's was now. we're before you going on, XXXX, we the even the #X. here. played we're life of out. Hopeland. payer, remember, would be also an beginning will how seeing much quarter. I horse a would the well, And provider As harder so it's be will of and

there And race, seeing years laggards, but neck are we and payer, that X race. to strong pharmacy be sciences really life and So neck are it's neck a all no but them. enjoy going of ahead and neck

Great. follow-up A if your that. question force. may And I on sales on

of think I reinvesting Are the or leverage understand you just Could specific about So verticals hiring you're sales some reps? new covering you for reps. where specific you expanding that you're share operating into geographies? your how adding

sure, Yes, Raymond.

you So back the to and put on so XXXX, We're in roughly marketing. we're going basis XX%, as year, and XXXX. look coming into in directionally delivery or sales XXX on sales XX% points another

-- XX%, So a by of or directionally we've that's XX% that increasing group launched so. We're number products. new

as them And have and Jacques with or really total success further the stronger align We're to We're embedding clients it. individual We into efforts. business refers our larger starting inside. client strategy hand-in-hand been some penetrating these client experience, arm-in-arm to down getting client further and our and that with customers. people stronger of is a in and focus development

So and as it into in expanding as well the supporting of density greater marketplace, coverage the you're those in offerings market. seeing in product new

Piper Sandler. comes And with Wieland of next question line our Sean the from

on for Congrats quarter. the Jess actually on It's Sean.

new first of you is Can what the decision-making just some in maybe was think that question those describe like of payer incremental customers? just wins? convert the I our the around drove Or wins those to that quarter. products what process reported some were

call. Jessica, thanks being on for the

with sign really So for as prepared XX XXXX. business payers X the expanding We're and seeing we few stream us of top quite data a the consumer and as out. API come our been rules had been our mentioned that it XX top we in obviously We've outside areas. new remarks, interoperable work We've seeing different have the health nice the selling traction multiple gateway to in response in well. in

on as know we're Blue a encounters. announcement And Blue attention the I as support on interest of quarter, that You there's ePASS something driven your multiple a on national saw payer the and amount super bit of you decision and well that national of know analytically seeing strong about. but that side. seeing a Shield Walgreens Cross is expansions we're in fair brands. the and was also Sean during lot This organizations

Okay. going revenue maybe of I QX. existing year, us with through of what go noticed churn? churn? just we And just from should we drove understand about follow-up think QX, some then if that forward? just I customers the some you we could And how Qs think, X.X, -- What XX.X, down of Can that XX.X, this as QX, then retention drove some help was

of interpret have It's trying tough legacy you when to right? client as Yes, So predominantly churning turning out that. down business it even winds predominantly context. is great interpret things, in X that to Jessica, when somebody, that business, on offering. appreciate a new you legacy the to That platform a see really due challenge with question. another is We the out

doesn't a also, up So fair sign ends then in see marketplace platform, whereas they it amount if of it legacy, a to as to implement it but another goes show of one gets on ours larger, there's our even M&A contract, client loss down and for sales. that that in the shuts on you some And might a cloud-based time have somebody as yet. new

the in lives. absorbed in acquiring contract doesn't into or put contract a because to show We company of it are get not going keep a did expands based, but up require where it membership they new marketplace. sale because contracts their PxQ getting they place. typically as fair on that a membership but the the into signature situations, decide absorbed, those there's those So they're amount the But M&A

them face of we across trying base. growth we're as it the you're read those taking understand what out to bit of is but when them our seeing on strong defined in So you're a filings, doing, the context, is

our And with the comes question of line Davis SVB next Stephanie from Leerink.

the on quarter. again Congrats

he question actually So hoping direct was to my first the I to line? Keith, Jason. Is on

was he he's the I out send actually regards. joining sick He listening -- his on he is I'm on line, line. He us is the would now. right but sure not apologize.

do we apologize. So

No worries at [indiscernible]. all.

QX, if don't job an I in myself. did He awesome so say

that What has you changed to this your was first recently. new just acceleration be uptick been the would deal Well, agreed. agreed, in hear, Agreed, X or and maybe my want out, announcements around base in in year interesting. seeing? win coming create past perspective we've the question to guys really I

thanks, Well, Stephanie.

I mean all lot of I our and what of others lot value creation that value focusing a to software marketplace. in put would design. the looked on from tagline the that focus alternatives software during customer. especially the for leading say, that's would think way have our and and a say, that the else. It's our ours. their Jacques focus experience our benefit. and in but of the them, the total other first. it's We've they with and to how clients ONE data join around, measurable When significant very And desire people achieve Jason modularity everything work value really on COVID, is of to very Inovalon platform customer they in client the have think putting is about a -- is found the a pulling I by the delivered us ahead It's really of the clients

lot lot customer driving client that So keep driving new platform other we're very it. with a players their keep marketplace marketplace. what delivering resilient products on and upon And of of and then XX strongly on they together A we the remained wins. We capabilities expanding trouble feedback and new in on it need based doing months, tech ours and extremely want reliable. the and in over had coming last the of All is innovating.

going client relationship. on have love. to your I an not that But was a continuing probably hoping update So new get I on win, Walmart you're question to

win there. You've out some to be lines of data drawn these project. a health any Walmart was data, on recent an Are working points? had AI There between that care there article a

client. great Stephanie, enjoy They them. very much fantastic We're as We Walmart ecstatic a question. it's a people. to have are

We to it can't it is have of at on to leave just really that. what them, But We with domain. a very of and have public lot on in we going outside are with them. honored and things comment working be we'll pleased the

line And with Ryan next our Daniels comes question William the from of Blair.

I taking expect range margins the you're kind internally think would to of Ryan. Jared in the XX% you reinvestment in company. some EBITDA that fund in or XXXX, for is opportunity This Haase Keith, in mentioned where so

past operating of of COVID of a thinking the everything, on kind just level get to XXX so at sort expect? being the should about or fair environment about basis. of to Once the points should And go-forward expansion so not, we it about continuing expand basis leverage if guidance that think Or of sort and think we margin we maybe by sort implied that's here?

of being the call. profitability for seeing a flexibility. ton Jared, thanks Look, the for Thanks we're on question.

we it's amount think a a using last months. over I XX fair the started term

company, things, the the the want As we of through, right success the we of long-term model on to just success focus customers. business shine is the of sure and the operating make the long-term our continues to platform leverage which obviously,

where investing those just the in products have sure multiple make how of and gave in see much the So evolving this years you visibility continuing lead really margins flexibility dollars operating larger to we're we're to supplemental be marketplace. the and EBITDA profitability. wanted you solutions same, we our innovation It's leverage experiencing. bring on showing to but new have and been deck, and to X we gross over into good Slide going that then the our We how

going saying you forward, think as in try that here your of So models XXXX. XX% for to we're

be into to want I of the it we think more that's to place and more acceleration. right pump thinking as topline

right into And to we'll its here it margins, want into show of how as line So again. But now, and line start appreciated address EBITDA and acceleration company about view you we the thinking around for of more further XX%. contribution excited bottom SaaS more pump acceleration gets top that a our we're to top line. in to hold to

similar color. sticking then just helpful that's And Yes, as maybe around Great. quick with theme just Okay. follow-up, reinvestment. a a

buckets lot margin about Keith, just areas use of know the those where obviously, fall company reinvest the to But you different sort I'm EBITDA I mentioned into of to a that and in talked guys So platform. expect you couple a layer kind continued of ACV to sort continuing that's strong you of buckets. into so this may where part that and is the be sort a able you have of that the that ACV of thinking you reinvestment to implement that support kind implementation, all that kind an in you've place. need to the area of of teams team product that Is have that you've you about outlined? strategy Or of sold workflows recently? this

to XXX Well, the we as reinvestment, those The and refer teams sales certainly scaling portion important delivery. us. incremental XXX to of that is

implementation is there some there. in So component

much on days, the implementation even quarters. not in getting in a been the reflecting -- pretty our As impressive, occurred completely this recent we with has in several how were customers together last

online to completely So have implementations done benefits that of one that remotely, huge the of we have massive come technologies. which or we've online been is brought soon cloud

really and those software. efficient to more the Head the are Charron, on continues we are how there in of the really efficiency and of further this of and mature And getting drives costs is Technology, implementation to further, our software focus automation our more as So efficient guy impressive greater Geoff as and of greater implementations. he cycles

don't money into as are putting it it, to implement as more. proportionally but we you we and more have we yes, more think So as might do

Donald line KeyBanc. And from with our Hooker next of the question comes

cases stuff hear more the use getting I just with some you You you just walk the the in traction? of of the through life Can seem little momentum, us sciences You about sort seeing to there? can be cases bit doing a you're the guys the to some guys share there. use of where growth most space. a you're wanted Maybe lot of mentioned,

now for and marketplace. the been different attention vaccine That the manufacturers just the world we strong there here is. for that Life the adjacencies fantastically. programs. additional call, for quarter fourth don't companies received during vaccine area really We boring at are adherence. uptake the this vaccines pharmaceutical Don, for need on thanks the vaccine adherence supported anybody vaccines the occurring of vaccine in important. And of both is beyond the verticals in with the significant right thanks fourth that the X some is and around been tell U.S. doing quarter. platform One least that We obviously COVID, to time, being Sciences we've the saying is leading And U.S. as has question. Group launched that's between in has

roll COVID we're seeing delighted to but how many and moving roared help they're awakening and think more out. right year, gosh, we're weakness. it they've know to support has into, things in certainly put sciences the I life it, great in I don't back far term the on And us seen than a them areas. So they a vertical on that, in

to it share helping you how like about kind Or would because a be keep And various as in that for the think that's might seems changing like growth looks Okay. you have be, you contract my of follow-up then here. right, of willing growth fourth point That's alluding us something directionally total can my XX% I I you just ACV of reported, interesting. contract about terms guess think Have kind here you guys? guys in quarter, of that's through way? durations I curious the total I metric in numbers a juggling numbers much thinking if thought you that kind sharing guess, How is you to that extending, are here if value future?

because lower right? period if more a running more great us We're the contracts a needs, we're our because direction a helpful. we're durations, get encourage sign I those where of also to term also talked we've clients' then the in and many In found it's A, only that But long clients happen. We're longer should really the of go they really are of to of don't they we they're long-term and you implement come down longer-term they're they're want that their as in better for cross-selling is could why of is these the focus cycle. that visibility seeing seeing twofold. interpret cloud growth. them. more the when they about which then what And I'd have us. price repricing the competition on be helps other contracts you because remarks, things with after, longer to nature through more contracts, renewal we and A, the could that comfortable do important or next making seeing in a we rampant, longer that getting longer greater prepared for going contracts the and are want clients their to And and upselling And And it's our might always lends to get delighted then additional longer, which many types decisions. it something build want. to they offerings clients opposite provide want contracts how don't to we that Don, what that on ask so continue we have we many term, and benefits of time help. it, you have a worried technology average it much be theirs market, through to in an ourselves marketplace the a think they year Yes, base We're the help drive versus partner decisions a the become along longer-term in that platform marketplace success, they a very strategic for coming different making shorter we the went would and in year short might obviously want Because take or seriously. new question. different hear others customers because so not duration their

predictable So as prepared remarks, into escalators PxQ getting, not our term, going positive models are them we for built that pricing auto in also and the also long to these only being but they're for contracts referred customer obviously forward. the

just you quite positive are you strong contract directions, I help, agree, I that value as So we can't company. although would are we give for the hope total seeing conveyed,

line Larsen BTIG. of David comes next the Our question with from

thoughts segments? then Is hospital on the of number delivered impacting good provider the COVID? hospital? little Can in Are about your they you quarter. view? there Inovalon campaigns provider office past doc maybe example, XQ bit in talk very being And side, different are and also the in So slowdown on side, some a general plan your would impacting are is think impact I that of passed a just 'XX. on Is there helpful. fully how for any the COVID Is fully on And And how dependent like the at be was that of -- COVID? the services in your fully volumes? just Congratulations you that business?

Sure, question. Thanks the for David.

expected anybody into But think much don't with play the very quarter. think built during can COVID. quarter contribution the it our very say passed that about States I expectations. I us, in out we our United So model as importantly we and fourth for X% I the they're think we've And legacy saw revenue

tell In to regardless because the and are whether through subscription-based whatnot. started that's us, a they patients make through and in to also So need can and we've It's for helpful for subscription, been revenues the velocity reaccelerating, not to we're on position do the revenue decision. of have your provider we there to be platforms, different activity licenses that purchase of points. really stayed they're But unrelated the those our quickly various to those impact yes, provider monthly to seeing return to some walk But or a certainly or space, time. space. indications -- doctors going there seen the of us intact COVID are vastly, a sales through because

you only as then some the correct payers, correct mid nice into and mentioned, the space, as build mentioned, business. were expectations, we're year. we off growth I the go in sales of initiatives, that year our of of part to We able subscription-based acceleration it not of modeling, it into for build gaining platform our legacy last we're in the impacted our and main space, the campaigns side seeing, payer to directed on indeed legacy there pickup in by as things So the were as but we some When well. that payer you're

the a So the in left intensely of offset that lighten contributor to we as COVID be that. you we impacted the year. but have second expectations starting really in do year kept a can to to by to the pretty half very our XXXX, XXXX of to and low here see going We of have expectation low part the up in continue expect can things piece the forward legacy first as here that

be think taking a view that question? pretty that topic. Nothing that. kick of the on answer conservative by mule we're to the earned on Does So we your second

just And if in. Yes, then can that's one I squeeze very it more, helpful.

prepared of things? are systems. Walgreens? I in-sell Walmart business XX retail you think what on of Was do won related? the see and were specialty top pharma you X Is And mentioned you with that longer-term it Which side the also in growth potential remarks, really of the ones retail sort those?

Sure, David.

they correct, global both we relationships. on both them. you announced, that of decides can't -- they're We're really apologize aspirations may both are to happen in want they dive the of Dave. on have -- So more very future. X X to can't they with significant play the great We'll XX whatever to those into those we've are retailers, leave space. Unfortunately, say the health And top active how to very care may anything have more we relationships. fantastic of comment that, else whatever in the I we

a quarter. on good No Congrats problem.

Our of the next with question Citi. comes Grosslight Daniel line from

your obviously competitive of of of by about dynamic that momentum congrats continued competitors a I space my playing consolidation here. the And semi the add the next recently. been on want a lot large in years. acquired will a out I to bit plan. There's just HCIT one little being echo see over few talk health you the

bit in-sourcing of if of payer next how competitive And over want you're So few an from dynamic a potentially could idea to the us you years? give see we I just side? the some about the thinking little more

is significant for to Thanks, to contracts. it. Daniel, XX the marketplace and received really area, months longer think I that business this it's being I on we and great call. emphasize have last Look, from longer-term up. it the appreciate the I want over important bring in an

they're their longer Capitel longer really your wallets, answering right? Jason contracts signing with would with as So and question us. say, They're

and in alternatives shorter longer As and contracts, to in up they'd be morning the significant signing to I night an shorter a we marketplace. So you the if early was we're differentiated a and bed the mentioned all are in health lot those of mentioned to very and go ours. our respect do of to plans question. Look, meaningful We acquisition not earn in wake ones. go your the XX significant to much. right? to longer flexible to value previous our question, clients have answer remain of advantage us, companies late independence, delivering Obviously, marketplace the wings, And from top it has XX but seeing at competitive with

competitive So we in of And bids an marketplace. the XX-plus the very for change the we've months. independence the of respect well against and added over But solution been advantage appreciate the all last in us in marketplace our is doing them.

we us. for this So see as a win

in are continue telling what seeing recent win from we'll that's are the has And And us from under what customers does. directions a to innovation. voted and march that us. telling weeks. we're that, And in our as capabilities solution cloud-based it will marketplace that the with That's But We clients we Inovalon major in and as assets us. very for to customers. those not invest pleased our are data connectivity continue and there's our the another retailers

sense. Makes Yes.

want guess I understand vaccine little to I there tools And the model to bit Okay. a behind economic follow-up unrelated to. just a the better. try

should And to capabilities? year, of in see then for acceleration of we should once life this beyond, get a expect specifically an this the As deceleration science XXXX we past vaccine bolus, revenues vaccinations rollout we related see you and a guys? we

Yes.

So great question.

the we December, condition. And huge, vaccinated. opportunity the the So patients the we being for the expense industry remember then of released some the isn't a cited if adherence my themselves, patient can't COVID, But obviously, comes manufacturers It's who I first isn't November, -- incur vaccines they're payers numbers not head. down vaccinated vaccines. not top in the vaccine some it's a in It's the and the of with -- in that and on the of there. all, huge have we're just release. platform -- we them the numbers of platform off is other when interest

quite as pretty both that we done involve So interest a this structure offering. to is up, and facilities and and revenue. has technology job offering. it's impressive and is, the coordinate set a customer just it's with, And complex is plans third-party and all team a that our on obviously, go manufacturers an health a of vaccine on contracting contracting it's The way a feat to that a bit basis attracting well, of through win-win-win result, a tremendous and

after So to that? uptake increasingly broadly, yes, we years. looking And we to certainly see it's topic It's the expect vaccine an here that coin do XXXX. seeing pick appreciation down early from expect do side call coming in up don't. to I of go as just visibility anybody in this and too in like benefiting that COVID away the but curve the don't And way. as or launched it important We it, other of we the go

So sales, in continue. again, positive a momentum lot expect we singular product very and that on revenue but not to making a any projections of

line Sandy Our next from of the Draper Truist comes question with Securities.

at year seems lot sort subscription was bit revenue But think if I much think quarter the ways thinking trajectory you I me, items when if of good and appreciate and guys little types you and and pile want lot typically, that's you're to a quarters. revenue seasonal and strong build it stronger quarter of fine Very level. a similar staying the had sort sort did of and questions you The the that probably sequentially, the a right get I the a third one, ranges line would point a without those at of fourth The you of A sort on the growth a of because asked. sort range decline have into quarter, Are for what rebuilds legacy just the have revenue, verify, always those in been down you then levels of of a nice from Also to there. platform to for and I of expect about a have about this assuming, second service then Keith, fact and different way you everybody. to a just in on similar is the obviously about trajectory sort steps correctly, heard congrats. fourth of direction? three of challenging pretty maybe a the and

the Sandy, thanks for question.

way the year-over-year So is about look, right? is just seasonality, the the things here. run as to pieces familiar we different reasons business. issues, But you it think you right on QX how we of So And numerical altogether, the there you you're basis, described. a it probably They with very the best different as But year-over-year. offered way. would thinking in of to are a encourage about think

to at Now what the being platform as of the really story, as the about think as larger But piece into to quarter, our the it. it X that the some for granular the of at there's model. more sequential QX, dynamic into and about a we're good growth than years to year-over-year we'll it. trying forward way is. year-over-year we more reliability And you're think looking why pieces out is way give it think the right detail Obviously, look come with

Got it.

are type expansion? just administration? Okay. into maybe back great it's those of that membership to that Or out XX% the stuff some the preliminary, I bigger Biden more beyond? bigger coming And X% you enrolled other a the the said -- Medicaid be of factoring talked X specific then year obviously D.C. picture. people That's into, On on with think think in helpful. any I you Is dynamics. drivers a -- to long-term Are changes factored try follow-up about you Slide get things where of do maybe doing underlying growth? strong Or some that next they're things very mean, Obamacare and but could some and that those to in

Yes. question. great Sandy,

out put election. guidance, our we trying we not presidential were when year, So remember, call to the last

our positive Trump positive a in Biden to If you a We, to either neutral fact, election election saw as the view got might in and administration. Biden we our remember, election. positive said in view a already we

in different number. to And up parts XX% a Advantage. it's of different year-over-year Medicare directionally the on certainly counting transpired, strong are all historical the The put X% up, as an by just state ways country. a managed And It come reported. ACA So around incremental obviously accurately company then very around the with strong XX% believe, then you Medicaid to on country. performance slightly it's have But it's administration. already already but another Obviously, not on again but already factors in don't X% Biden to positive brought numbers XX% -- hasn't differs We reopen across performance to will is X% executive a happened enrollment that open there incremental open So it's know what right? basis, is is that's strong of directionally in an the state, a or a really ACA. our enrollment to those order I XX%, yet. be. has Medicaid because that up to X% enrollment it there done Medicare Biden the has in reflected, enrollment performance for

because aspect is going administration it new it yes, our linear positive really, to driving some the is offerings. of product you, and a it new very So Thank be of additional math also Sandy. of customers with business Biden as is then model. of straightforward for just broadly, some to PxQ incrementally And interest

the really value of and three, acceleration XXXX, our profitability combining for leave are And accelerating of With I that driving are in contracts margins. seeing to long-term a strong the rising question. our SaaS which time, many few increasing we're leverage call, very retention the So our Number with number listeners us renewals, just for quarters for have new resulting a record And of that, online, thank salient these you, significant strong two, but also recognition, We're close we all years industry-leading same before excited quite many, cloud-based many growth market repeat strong operator. sales. at as seeing that's factors, points. coming the with capabilities. implementations operating ahead. in we're client seeing want final increased one, Number for client now demand rates importantly, of

taking Thank thank in and for So for out care. you interest evening. all Take with Inovalon, some you. of all you night your this that, to time good

gentlemen, this conference participating, may today's now and Thank for Ladies you concludes disconnect. call. and you