 Second Quarter 2020 Highlights Q2 revenue of 162.2 million, up 3 YoY Q2 subscription-based platform revenue of 142.1 million, up 13 YoY, equating to 88 of Q2 total revenue Q2 net income of 2.0 million, resulting in diluted net income of 0.01 per share Q2 Non-GAAP net income of 22.0 million, up 15 YoY, resulting in Non-GAAP net income of 0.15 per share Q2 Adjusted EBITDA of 56.6 million, up 8 YoY, resulting in Adjusted EBITDA margin of 34.9 Q2 net cash provided by operating activities of 49.0 million Q2 new sales Annual Contract Value ACV1 totaled a record 75.7 million, up 38.1 YoYDebt Cash Highlights Voluntarily repaid 99 million 100 of all outstanding amounts of revolver on June 4, 2020 Cash balance as of June 30, 2020 totaling 95.6 million Net debt leverage ratio as of June 30, 2020 improved to 3.69x versus 4.32x on June 30, 2019Trailing Twelve Month TTM2 Second Quarter 2020 Highlights TTM Q2 revenue of 656.3 million, up 12 period-over-period TTM Q2 subscription-based platform revenue of 563.1 million up 17 period-over-period, equating to 86 of period revenue TTM Q2 net income of 11.9 million TTM Q2 Non-GAAP net income of 81.9 million, up 42 period-over-period TTM Q2 Adjusted EBITDA of 218.0 million, up 16 period-over-period TTM Q2 net cash provided by operating activities of 129.7 million TTM Q2 new sales ACV totaled 238.7 million2020 Guidance Highlights Raising low end of revenue range, and increasing Adjusted EBITDA and Non-GAAP diluted earnings per share guidance for full year 2020 Providing third quarter 2020 guidancePlease refer to our Second Quarter 2020 Earnings Presentation Supplement available at for additional information, 2020 financial guidance, additional financial metrics, and other topics that will be referenced during the Companys conference call.BOWIE, Md. , July 29, 2020 GLOBE NEWSWIRE -- Inovalon Nasdaq: INOV, a leading provider of cloud-based platforms empowering data-driven healthcare, today announced financial results for the second quarter of 2020 and updated guidance for the third quarter and remainder of 2020.Inovalons focus on leading in innovation, serving as the enablement layer of data-driven healthcare, and landing new clients and expanding within existing clients, was fully demonstrated in the second quarter with broadening adoption of our platform and new sales hitting a record. Sales highlights in the quarter consisted of a strong portfolio of contracts, including such tremendous industry-leaders as Walmart and Cardinal Health. The Company also closed a long-term cloud-based SaaS contract expansion with an existing top-five payer client for a single solution on the Inovalon ONE Platform worth in excess of 150 million in Total Contract Value3, said Keith Dunleavy, M.D., Inovalons chief executive officer and chairman of the board. I continue to be extraordinarily impressed with the Inovalon team, their dedication, energy, and performance in every corner of the Company as we navigate the COVID-19 environment and relentlessly deliver for our expanding portfolio of clients.Second Quarter 2020 Financial Results Revenue for the second quarter of 2020 was 162.2 million, a year-over-year increase of 3 compared with 157.0 million for the second quarter of 2019. TTM revenue for the second quarter of 2020 was 656.3 million, a period-over-period increase of 12, compared with 584.6 million for the second quarter 2019 TTM period. Subscription-based platform revenue for the second quarter of 2020 was 142.1 million, or 88 of second quarter 2020 total revenue and a year-over-year increase of 13, compared with 126.3 million for the second quarter of 2019, or 80 of second quarter 2019 total revenue. TTM subscription-based platform revenue for the second quarter of 2020 was 563.1 million, a period-over-period increase of 17, compared with 479.4 million for the second quarter 2019 TTM period. Cost of revenue for the second quarter of 2020 was 36.8 million, or 22.7 of revenue, compared with 41.1 million, or 26.2 of revenue, for the second quarter of 2019. Net income for the second quarter of 2020 was 2.0 million, resulting in diluted net income of 0.01 per share, compared with 4.5 million and 0.03 per share, respectively, for the second quarter of 2019. Adjusted EBITDA for the second quarter of 2020 was 56.6 million, up 8 year-over-year, compared with 52.2 million for the second quarter of 2019. Adjusted EBITDA margin for the second quarter of 2020 was 34.9, an increase of 160 basis points, compared with 33.3 for the second quarter of 2019. TTM Adjusted EBITDA for the second quarter of 2020 was 218.0 million, a period-over-period increase of 16, compared with 188.0 million for the second quarter 2019 TTM period. TTM Adjusted EBITDA margin for the second quarter of 2020 was 33.2, a period-over-period increase of 100 basis points, compared with 32.2 for the second quarter 2019 TTM period. Non-GAAP net income for the second quarter of 2020 was 22.0 million, up 15 year-over-year, resulting in Non-GAAP net income of 0.15 per share, compared with 19.1 million and 0.13 per share, respectively, for the second quarter of 2019. TTM Non-GAAP net income for the second quarter of 2020 was 81.9 million, resulting in Non-GAAP net income of 0.56 per share, compared with 57.7 million and 0.39 per share, respectively, for the second quarter 2019 TTM period, an increase of 42 and 44, respectively. Net cash provided by operating activities for the second quarter of 2020 was 49.0 million, an increase of 95, compared with 25.2 million for the second quarter of 2019. TTM net cash provided by operating activities for the second quarter 2020 was 129.7 million, an increase of 18, compared with 110.2 million for the second quarter 2019 TTM period. Free cash flow4 for the second quarter 2020 was 30.0 million, an increase of 166 compared with 11.3 million for the second quarter of 2019. TTM free cash flow for the second quarter of 2020 was 60.6 million, compared with 58.9 million for the second quarter 2019 TTM period. Inovalon delivered 13 year-over-year subscription-based platform revenue growth, record new sales Annual Contract Value of 76 million, and continued to substantially expand profitability during the quarter, demonstrating strong durability of revenue, platform financial performance characteristics, and market adoption of our business model despite a challenging environment, said Jonathan R. Boldt, Inovalons chief financial officer. We continue to successfully balance prudent costs and investments in ongoing innovation and capability expansion for long-term market leadership and growth, with concurrent attention to strong cash flow and profitability.Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, and free cash flow are Non-GAAP measures. Net income is the GAAP financial measure most directly comparable to Adjusted EBITDA and Non-GAAP net income. Net cash provided by operating activities is the GAAP financial measure most directly comparable to free cash flow. Reconciliations of net income to Adjusted EBITDA and Non-GAAP net income and reconciliations of net cash provided by operating activities to free cash flow identifying the differences between net income and net cash provided by operating activities and each of these Non-GAAP financial measures, are included in this press release after the consolidated financial statements.Key Highlights Strong Sales Execution, Cloud-Based Platform Adoption, Record ACV, and Continued Subscription Growth. During the second quarter Inovalon successfully converted a wide array of opportunities within its sales pipeline into signed contacts driving record new sales ACV of 75.7 million a metric which reflects only the first year of expected revenue from new contracts signed during a period, a 38.1 increase versus the second quarter of 2019. Sales were strong in all business units. The second quarter also demonstrated the broadening adoption of Inovalons cloud-based SaaS solutions with marquee industry-leading wins across multiple segments of the marketplace - including a top-five consumer retailer Walmart, a top-five medical distributor Cardinal, and a top-five payer - each entering into long-term five to seven years contracts, with the payer contract expansion alone resulting in a seven-year engagement with a Total Contract Value in excess of 150 million. Reflecting the growing strength of Inovalons cloud platform offerings, each of these were for 100 subscription-based, SaaS cloud-based platform solutions, contributing to the Companys continued strong expansion in its subscription-based platform business which totaled 142.1 million during the second quarter, equating to 88 of second quarter total revenue, and reflecting 13 growth over the second quarter of 2019. Profitable Growth and SaaS Industry Leading Margins. The Companys continued focus on cloud platform architecture efficiencies, marketplace connectivity, process automation, and the application of data supplementation and advanced analytics informed by Inovalons unparalleled primary source real-world data asset, together with the realization of continued product mix shift and strong market value recognition, resulted in increasing profitability for the Company during the second quarter. Cost of revenue as a percentage of revenue decreased to 22.7 in the second quarter versus 26.2 in the second quarter of 2019. This, in combination with the Companys strong operational leverage, resulted in Adjusted EBITDA for the second quarter of 2020 coming in at 56.6 million, up 8 year-over-year, compared with 52. 