Inovalon Holdings, Inc. (NASDAQ:INOV) Q2 2020 Earnings Conference Call - Final Transcript
Jul 29, 2020 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to the Inovalon Second Quarter 2020 Earnings Call. [Operator Instructions]
And now, I'll turn the conference over to your host, Kim Collins. Please begin.
Kim E. Collins
Good afternoon. This is Kim Collins, Senior Vice President of Communications at Inovalon.
I'm here today with Dr. Keith Dunleavy, Inovalon's Chief Executive Officer and Chairman of the Board and Jonathan Boldt, Inovalon's Chief Financial Officer. I'd like to welcome you to our second quarter 2020 earnings call.
The press release announcing our financial results for the second quarter was distributed this afternoon and a replay of today's call will be available shortly, posted on the Investor Relations page on Inovalon's website. For those of you listening to the rebroadcast of this call, we remind you that the remarks made herein or as of today, July 29, 2020, and will not be updated subsequent to this initial earnings call.
I'll remind you that certain statements made during this call may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995, including statements related to future results of operations and financial position, our business strategy and plans, market growth and our objectives for future operations. Those statements involve a number of factors that could cause actual results to differ materially. Additional information concerning these factors is contained in the Company's earnings release and filings with the SEC.
In an effort to provide additional information to investors, this conference call and webcast is accompanied by a presentation, which is available on the IR section of our website. You're encouraged to download a copy of this presentation to follow along with our prepared remarks. Our presentation also includes certain non-GAAP financial measures. You'll find definitions of these non-GAAP measures and reconciliation charts at the end of the Company's earnings release and on the Company's website.
Now, it is my pleasure to turn the call over to Dr. Keith Dunleavy.
Keith R. Dunleavy
Thank you, Kim. Good afternoon, everyone, and thank you for joining our call.
Let me begin by saying I continue to be extremely impressed with the Inovalon team, their dedication, energy and performance in every corner of the company as the entire organization continues to execute successfully despite the obvious COVID-19 pandemic challenges. The Company's cloud-based platform leadership within the healthcare vertical demonstrated itself well during the second quarter. With accelerating adoption of the Company's capabilities, Inovalon delivered a new sales record of $76 million of new annual contract value during the quarter, a 31.8% increase versus the second quarter of 2019, another sequential quarter of 13% year-over-year subscription-based platform revenue growth and continued expanding profitability with leading SaaS industry gross margins, operating margins and earnings per share performances.
In addition, we continue to have strong operating cash flow, voluntarily repaid in full the $99 million that was previously drawn from the Company's revolver and stand with a positive view towards our second half of 2020 and even more so towards 2021 as a growing number of the Company's expanding platform