Inovalon Holdings, Inc.
Q1 2021 Earnings Call Transcript

Published: 29 Apr 2021

[Operator:]

Good day, ladies and gentlemen, and welcome to the Inovalon First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this conference is being recorded. And now I'll turn the conference over to your host, Kim Collins. Please begin.

[Kim Collins:]

Good evening. 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.

[Keith Dunleavy:]

Thank you, Kim. Good evening, everyone, and thank you for joining our call. First, I want to start by saying how much of a privilege it is to work with the team that I have today. Across the company, the associates of Inovalon are executing, energized, resilient, mission focused. And I couldn't be more proud of what they are achieving and the impact and value that we are bringing to the clients and the marketplace we serve. The first quarter of 2021 witnessed strength across the board. Market demand was strong, new sales were strong. Implementations progressed well and on schedule. The company's many engineering projects associated with new product innovation and development, cloud and data technology advancements progressed well. And the many departments and projects of the company that are key to maintaining a strong foundation and enabling strong growth move the respective initiatives forward with impressive efficiency and reliability.

[Jonathan Boldt:]

Thank you, Keith, and good evening, everyone. Now let me highlight a few key points building on Keith's opening remarks. First, Inovalon’s first quarter performance exceeded our expectations with revenue exceeding our quarterly revenue guidance range and growing 15% year-over-year. Second, there is a strong demand for our platform and our sales teams continue to execute well, driving an increase in new sales ACV of 81% year-over-year, and an increase in new platform sales ACV, excluding services of 120% year-over-year. Third, based on our strong first quarter performance, we are increasing our full year 2021 revenue guidance to 12% to 16% growth year-over-year. And fourth, we continued to make investments to further accelerate our growth, investing in areas of sales and marketing, innovation and delivery, all of which are driving very positive returns and payback periods. Now turning to our first quarter results. First quarter 2021 revenue was $177.2 million, an organic increase of $23 million or 15% year-over-year. This increase was primarily fueled by an increase from new customer wins over the last 12 months and the continued adoption of subscription-based platform offerings. Focusing on our revenue streams, subscription-based platform revenue in the first quarter was $158 million, an organic increase of 15% year-over-year and equating to 89% of first quarter revenue compared to $137.1 million in the first quarter of 2020. Services revenue in the first quarter was $15.6 million or an increase of 15% from the year ago period and represented 9% of our first quarter 2021 revenue. Legacy revenue was $3.6 million and contributed the remaining 2% as expected. Inovalon’s new sales ACV during the quarter came in at $82.1 million, an increase of 81% year-over-year. New platform sales ACV excluding services was $63.8 million or an increase of 120% year-over-year while the overall sales pipeline continued to expand even after the sales team success in the quarter.

[Operator:]

Thank you. Our first question comes from the line of Daniel Grosslight of Citi. Your line is open.

[Daniel Grosslight:]

Hey guys, thanks for taking the question and congrats on the quarter. I wanted to dig into the consumer API product a bit now that the interoperability rules have started to come into effect. Curious what the payer adoption has been there. I think previously, CMS noted around 480-or-so payers will have to adopt these APIs that cost around $2 million. How much of that market do you think you can eventually capture?

[Keith Dunleavy:]

Hey Dan, good evening. Thanks for taking the time to join us today and thanks for the question. That market is really a great market for Inovalon for a number of reasons, most significantly because it highlights the connectivity we have with the payer space, the relationships we already have in the payer space and the API capabilities of our platform. That is playing out nicely. We’ve captured a number of clients in that space, how many we ultimately capture and how – what they scale to. We’ll obviously have to wait and see as our subscription-based approach, and there’s a volume-based approach on those platforms as well that provides for us an interesting upside opportunity as we serve that customer base. So I don’t want to make any guesses as to what percentage of the total marketplace will ultimately capture, but we’re pleased with our progress and excited about what the overall API capability is for the company.

[Daniel Grosslight:]

Got you. And maybe just one follow-up on the legacy revenue. I think that was probably the most impacted by COVID along the services, but it seems like services has come back, whereas legacy remains at depressed levels. Should we be thinking about legacy at the same kind of quantum for the rest of the quarter? Or should we be building in sequential increases as we lap COVID?

[Keith Dunleavy:]

Great question, Dan. Certainly, you’re absolutely right that legacy was most impacted by COVID. And as you might recall, for our 2021 guidance, we maintained the presumption that COVID would persist very much at least into the first half of the year and then make some recovery in the second half of the year, wanting to take a more conservative approach to how that’s going to play out. Obviously, a lot of our customers learned that cloud-based platforms are a great solution during the COVID experience and therefore, ultimately migrating the remaining legacy clients to cloud is a great opportunity for us. But as you think of that portion of the business going forward, we see it roughly where it is now on a percentage basis with a little bit of a trend up in the second half. John, do you want to expand on that?

[Jonathan Boldt:]

Yes. Hi Daniel thanks for the question. We continue to see legacy at 3% of revenue. And as we look through the year, first half still expect some COVID overhang and then continuing to trend back to normal in the second half.

[Daniel Grosslight:]

Got it. Thanks, guys.

[Keith Dunleavy:]

Thanks, Dan.

[Operator:]

Thank you. Our next question comes from Donald Hooker of KeyBanc. Your question please.

[Donald Hooker:]

Great. Good afternoon. So the ACV statistics look fantastic. And I’m trying to sort of, before I get too enthusiastic here, I’m trying to sort of talk myself down. So I’m just sort of thinking through, is there anything that you – before we get over our skis here, was there any set of pent-up demand? Or I mean, you mentioned in your prepared comments that it seemed like a broad based demand, but was there any kind of pent-up demand, maybe people held off over the past year and are sort of coming due in mass now? Or how do we think about sort of the cadence of your ACV metric looking forward and looking back?

[Keith Dunleavy:]

Hey Don, thanks for joining us. Thanks for the question. Look, our sales team is really fantastic, and they’re fantastic across all of the business units, certainly, they get a lot of credit for how we’re progressing. But so too, to the engineering folks who are putting fantastic innovations into the marketplace and our operations teams there doing the implementation of this stuff and our client services and support, which are achieving a total client experience that excites the customer to buy more. And we’re in the right spot with the right technologies, and we’re building out the capabilities where the puck is going to be, not just where the puck is now. So all of that is driving strong sales. And as we mentioned in our prepared remarks, we continue to see that progressing. And certainly, Q1’s numbers, while they were really nice, we’ve seen quite a few quarters of pretty nice sales and strength in our opportunity pipeline still here quite nicely. So no pent-up demand in what we’re seeing. We’re just seeing continued strength and building relationships and building appreciation of the capabilities of the company and a team that’s executing on delivering for that demand.

[Donald Hooker:]

Okay. Maybe this is my follow-up in terms of, I guess, using that ACV metric as a leading indicator of revenues. Is there any change in terms of the conversion of that or any kind of difference? And if I went back a year and kind of compare revenue growth off of prior year ACV data, is there any reason to think it might be different now versus a year ago or two years ago?

[Keith Dunleavy:]

Well, also a great question, Don. Obviously, as you’ll recall, our individual engagements are going to have different characteristics depending on what the underlying offering is that the client has assigned for, and the implementation of those time lines or the time lines of those implementations, pardon me, vary quite widely. So I wish I could say that every quarter, we sold an identical mix of product offerings such that the translation and progression of implementations in the revenue was identical, and you all could readily build models off of that. But that’s not the case. The case is that it varies quarter-to-quarter, and the individual product lines have quite a different characteristic, so it wouldn’t be – directionally, it’s going to help you out, but it’s not something that is mathematically exact quarter-to-quarter.

[Donald Hooker:]

Okay, thank you.

[Operator:]

Thank you. Our next question comes from Stephanie Davis of SVB Leerink. Your line is open.

[Joy Zhang:]

Hi, this is actually Joy on for Stephanie. Thank you for taking my question.

[Keith Dunleavy:]

Hey, Joy.

[Joy Zhang:]

So my first question is on the Vaccine Adherence programs. You mentioned the Humana contract expansion, can you just expand on what makes your solution works better than what payers can do in-house right now in terms of identifying candidates for vaccination? And is that differentiation driven more by the quality of your algorithms? Or is it more on the uniqueness of your data sets?

[Keith Dunleavy:]

Thanks for the question, Joy. So the Vaccine Adherence platform is really quite an exciting demonstration of the network effect benefit of Inovalon. It requires relationships beyond just one vertical cohort of the health care ecosystem. So if you think about it, you have payers involved. You obviously have patients involved. Providers have to administer vaccines and pharmaceutical companies need to be producing them and involved. So the fact that we have relationship and engagement and data rights and authorizations and data sets that glue all of that together is, to our knowledge, unparalleled in the marketplace. So the ability to have all of those different constituents, dealing with the cleanest set of data that exists out there in the marketplace and apply analytics to them that can identify not just who should have a vaccine, but also who doesn’t have a counter indication for vaccine. Who might have gotten the first of the vaccines, but not the second or third, depending on the type of vaccine involved? What the timing should be, what’s the right place for them to actually receive the vaccine once engaged? All of these questions and making sure that it’s in strict compliance with CDC and HHS requirements is no trivial task. So it’s a great demonstration of the combined power of data and platforms and contractual relationships across the marketplace.

[Joy Zhang:]

Got it. Thank you. And on the life sciences market side, can you talk to what are the potential areas of expansion within that market beyond the sort of outcome-based contracting work that you’re doing now? For example, would you want to expand into the real-world evidence solution space for clinical trials? Thanks.

[Keith Dunleavy:]

Sure, Joy. We certainly see any area where data makes a difference in health care as an opportunity for expansion. So vaccine adherence, obviously, is key to the life sciences space today, outcomes-based contracting, as you mentioned, drug development, device development, post-market testing, surveillance, tracking, all of these things are quite key. But also key is the consumer level side of the pharmaceutical space as the pharmaceutical and device space tries to better understand for these high-cost medications, who the ideal consumer or user of their medication or device might be. And on the consumer side, they’re increasingly trying to understand the selection of how they can better get to the right place for them uniquely. So a ton of opportunity for expansion in life sciences throughout what we would call the CRO space. We’re pretty excited for that, and we’ll see more of that to come going forward.

[Joy Zhang:]

That’s helpful. Thank you.

[Operator:]

Thank you. Our next question comes from question comes from Ricky Goldwasser of Morgan Stanley. Your line is open.

[Connor Light:]

Hey, thanks. This is Connor Light for kick on for Ricky Goldwasser. Keith, you mentioned in your prepared remarks that Inovalon is automating some of the implementation. Can you expand a bit more – maybe give us a sense for which functions are being automated and how these initiatives could increase throughput kind of in the near and long-term? Thanks.

[Keith Dunleavy:]

Sure. Thanks, Connor, for the question. So we have a fantastic engineering team led by a fantastic CTO, Jeff Sharon, and there’s a lot going on that take the many steps that take to go from a signature through to full operation in any large platform implementation. So some of the types of things that you need to see happen are the connectivity elements of all the disparate pieces that make up the operation of the customer you just signed with making sure their laboratory systems are connected and they’re literally even their print systems, their distribution systems, their inventory systems, their revenue cycle management systems all of these other parts of their ecosystem need to be connected into our platform, for instance. That all is cloud-based connectivity, and it’s a lot of individual process steps. Automating more and more of them is quite key. And then also automating the ingestion of all the data sets and automating the process of setting up the administrative claims submission process these organizations that are processing prescriptions on our cloud platform for the specialty pharmacy marketplace, for instance, or providers that are handling all of their encounter activity or decision support activity on our platforms in order to make their workflow, be completely seamless within their work environment. All of those individual connections need to be set up. Automating those and other things like it are key time accelerators and how fast we can get a larger and larger client base up and running. And what it also does, Connor, is allows us to go in upstream and downstream in the sizing in these verticals, which allows us to have a much larger reach and customer opportunity at different price points in the market.

[Connor Light:]

Great. Thanks. That’s really helpful. And then maybe switching gears a bit. And my follow-up, the Biden administrations opened ACA enrollment through the summer. I think on the last call, you mentioned that you haven’t included any benefit from this. And with the process now ongoing, do you have any update kind of with these enrollment trends, is it embedded in your guidance going forward?

[Keith Dunleavy:]

That is a positive incremental tailwind in our business going forward. It is obviously still open and still expanding. We support the vast majority of the ACA players in the marketplace on the platform. So that is a positive, it would be still early to give any kind of projections to the impact of it, but it is a positive. We’ve been watching the numbers and the population roll in, but you certainly don’t want to set any expectations before we know what the final numbers are.

[Connor Light:]

Great. Thank you.

[Keith Dunleavy:]

Thanks, Connor.

[Operator:]

Thanks. Our next question comes from Ryan Daniels of William Blair. Your line is open.

[Jared Haase:]

Hey, good evening. This is Jared Haase in for Ryan. Thanks for taking the questions. Jonathan, I think this is maybe for you. I think you mentioned some new hires in the sales force. I think you mentioned, if I have the numbers correctly, 299 people now versus 277 at the end of Q4. So I guess, number one, I just want to make sure I have those numbers correct. And then two, if you could talk a little bit about just the composition of those hires, any specific end market or channel focused with those? Obviously, Keith, you mentioned a little bit about investments you’re making from an implementation standpoint. So maybe they’re more oriented around that. Just any more flavor you could give us around those new hires?

[Jonathan Boldt:]

Jared, thanks for the question. First, yes, you have the numbers correct. At the end of Q1 2021, we had 299 sales and marketing team members. That did compare to 277 at the end of Q4 2020. Your second question was, where – is there any concentration within our verticals? And right now, Jared, we are not opportunity constrained. We continue to see very strong demand in all of our end markets for the technology we’re providing. Specifically, one of the largest areas we have continue to see strong growth is in our pharmacy, payer, life sciences and then finally, provider. But where there’s a specific focus, it’s really across all because we continue to see that demand for our technology.

[Jared Haase:]

Got it. Yes, now that makes sense. And then I just wanted to ask another one, just relates to visibility and in the context of the guidance. So if I look at the updated outlook, it looks like the range from the low end of the high end is the same in absolute terms as the prior guidance. And Keith, I know you've discussed kind of the layering effect of new sales over future periods. You've talked about that in the last couple of quarters. So the answer may just be that there's kind of uncertainty related to the timing of how that all flows through. But I'm just kind of curious how you would sort of characterize visibility and maybe why the revenue guidance range at this point wouldn't be a bit narrower, just kind of given where you sit at this point in the fiscal year?

[Keith Dunleavy:]

Jared, certainly, we've had a very consistent range over time. I don't think it's – I don't think it's wide for at this point in the year. I mean, we have to let the year rollout. But we have a lot of visibility. We're pleased with it. Our goal is to underpromise and overdeliver. And we think it's prudent to have a little bit of range regardless of where you are in the year.

[Jared Haase:]

Okay. Fair enough. I’ll leave it there. Thanks.

[Keith Dunleavy:]

Thanks, Jared.

[Operator:]

Thank you. Our next question comes from Jessica Tassan of Piper Sandler. Your line is open.

[Jessica Tassan:]

Hi, thank you for taking my question, and congratulations on the quarter. I think we were just interested to know, so you mentioned that you signed the 25th of the Top 25 pharma clients in the quarter. So just in addition to the consulting and platform sales with large pharma, are you guys benefiting from some of the shift in pharma advertising from face-to-face to virtual? And if so, do you think that looked disturb? And can you just kind of help us understand how those contracts work?

[Keith Dunleavy:]

Hey, Jessica, thanks for joining the call. I appreciate it. The new changes in marketing for life sciences is not a principal driver of the revenue during the quarter. It continues to be our historical advancement of development and post-market surveillance and commercialization and real-world evidence and value-based contracting and now more increasingly, the vaccine adherence programs, but not principally seeing a unique driver out of the virtual marketing side.

[Jessica Tassan:]

Got it. And if I could follow-up and kind of ask. So when you think about what makes your solutions for pharma sort of more effective or higher ROI than the alternative. Does they come down to a data set or like an algorithm or the platform, can you just kind of help us quantify the competitive advantage?

[Keith Dunleavy:]

Sure. The competitive advantages are a few different pieces of the machinery, Jessica. Most importantly is the primary source data capability of the platform very much adjacent to and obviously interlaced with that is the connectivity. But then what they're increasingly seeing is the true differentiation of that data versus other alternatives they have in the marketplace. I can't stress enough, how important it is to have longitudinally linked identified primary source data in the marketplace. I think it's highly underappreciated in some corners of the market. Certainly, our client base is increasingly appreciating it. The highest value you can deliver to a life science company that has, let's say, $60,000 $80,000, $100,000 treatment or device, is unique identification of the specific patient or a specific provider and the actual clinical profile that's going on there. And then the analysis you can do from that real-world data is quite differentiated as well. That is key. And then additional to that is the fact that we have relationships with the other parts of the ecosystem, right? We can talk to a life sciences company, and then we can go sit down with 10 major payers or 100 different providers and stitch together a solution that nobody else in the marketplace really has the ability to bring together. So it's that combination. And then if you look at Slide 12 in our supplemental deck, it's the unique depth of specific high-value areas in health care, like oncology, like heart failure, like rheumatoid arthritis and other autoimmunes. Those areas are data sets that are deeper than other people have in the marketplace by far. I hope that helps.

[Jessica Tassan:]

Thank you.

[Operator:]

Thank you. Our next question comes from David Larsen of BTIG. Your line is open.

[David Larsen:]

Yes. Good quarter. Can you provide some color around your relationship with Walgreens, Walmart and Cardinal. Maybe just if you could talk about the nature of those deals, what the potential in sell opportunity might be? And then obviously, if you don't want to get too specific around each client, maybe just sort of your views on the retail pharmacy space and the solutions that are selling most well in that channel? Thank you.

[Keith Dunleavy:]

Thanks, David. We are obviously required to stick to the four corners of what we've publicly announced with each one of those partners, and we're super excited about each one that you named. All of them fantastic and all of them not only great individual engagements, but now multiple engagements and expanding engagements, and most importantly, really positive relationships. As they build their strategies and their expansion approaches were very fortunate and honored to be at the table on a lot of that work. The expansion – one of the parts of your question was into retail. The line between specialty and retailer is boring fast. And the reason it existed in the first place was it was a concept between low-cost, low-margin, low-impact on one side and high-cost, high-complexity, high-impact, high-margin on the other side. And the reason those were differentiated, of course, was because there was a high cost of achieving the things necessary on the specialty side until came Inovalon, right? So because of our platform is able to deliver so many of the value differentiators that you ordinarily could only afford in a specialty cost environment or revenue environment market. We're now able to bring that further and further down to a unique experience at the retail side of things. So if you were especially knowledgeable about who the patient is, especially knowledgeable about their clinical care, especially knowledgeable about the provider that prescribed it, how their kidney function is going, their liver function is going and so forth. You can deliver as a retail organization, a client or customer experience with that consumer, with that patient that you could only hope to have at a much higher price point offering. So we're really changing the marketplace there. We're excited about where that's going to go. And obviously, that is a massive, massive opportunity.

[David Larsen:]

Okay. And then just one more, if I can, please. Like the growth in the ACV, am I reading that correctly, does that say up 81% year-over-year? And then if your long-term sort of revenue guide is maybe mid-teens growth, just any sort of thoughts around like what you would expect the ACV to grow at a – I guess, on a normalized basis? Thank you.

[Keith Dunleavy:]

Well, one of the things we have coming up, David, and I'll mention at the end of the call again, and there's going to be a press release out on it tomorrow morning is we're going to host an Investor Day on May 18. And we'll provide some additional detail into what you're driving at. But what we're seeing is continued increase in the performance of our sales teams. And obviously, we're going to keep on investing in them and investing in the products we bring to marketplace and the delivery of that because with every dollar, we're actually getting higher returns as the sales team becomes increasingly sophisticated, increasingly seasoned and has greater and greater products to sell. So we're far from calling a quote normalized a sales environment. We're excited that we're still seeing and up until the right scenario with our progress. So some year down the road, maybe I can tell you what normalized sales will be, but we certainly aren't ready to call that now as we're pleased with what we're seeing.

[David Larsen:]

Okay. Thanks a lot. Congrats on a good quarter.

[Keith Dunleavy:]

Thank you.

[Operator:]

Thank you. Our next question comes from Glen Santangelo of Guggenheim. Your line is open.

[Glen Santangelo:]

Thanks for taking my question, Keith, I just want to follow-up on the questions around the recent ACV momentum. Well, if we kind of go back to last year, we saw a little bit more volatility, particularly in the third quarter and now we've had a couple quarters in a row where we've seen that contract value momentum. But I listened to the prepared remarks, it seems pretty clear that there is a lot of things that are kind of coming together right at the same time to contribute to that result. But if you think back a few quarters, I think we maybe saw some churn that may be undermined some of that contracting momentum. And so, I’d be kind of curious to see what you're seeing in that regard, and maybe is there less churn within your existing customer base that might actually be augmenting the revenue growth in a way that we don't fully appreciate. Any thoughts around that?

[Keith Dunleavy:]

Yes, Glen, so there is a lot in there. So let me hit a few different pieces of it. And hopefully I knock down what you're speaking to. So, first of all, our turn we have not seen any variants off of what our typical churn range has been, which is I'm sure you'll recall. Historically going for many, many years, we typically have a client churn rate or a retention rate 87% to 93%. So if you want to use easy math for your 10% on the churn on a client count basis. On a dollar retention basis, it's a nicer number, it's a higher number because clients continue to expand and buy additional things for store. But we have not seen last year or for quite some time now abnormal churn rates. So these ACB sales are layering, obviously we have to all those sales, we have to get those all into place and that can take a long time for some of them, others can implement quite quickly, but we have to get that work done. That's all scheduled work, meaning there is a known timeline for how it happens, it's not something like you work through it and you hope it ends on time, it's contractually obligated as to when we have to get those implementations done. And as we mentioned in our prepared remarks, those are all progressing as scheduled and progressing well. Look, this is a team sport here, we've got a great team, and as I mentioned earlier, it's a lot of different parts of the machinery that are executing in great synchrony together. There is product innovation, there is product maturation, there is obviously sales, there is the implementation, there is the client support. What you're seeing is a lot of those pieces really coming together and coming together well. And we're obviously enjoying ourselves as we do that succeeding for our customers and succeeding for each other in the marketplace feels great. And we are continuing to see that progress and stay strong. So even after the quarters you just referenced of strong numbers which I agree, we also wanted the message that we've got a great looking pipeline as well. And we have to do our job to convert that pipeline into ACV sales, but that's what we're doing, we're doing our job.

[Glen Santangelo:]

That's great. Thanks. If I just ask one quick follow-up, the more registry now contains 336 million patients, so you saw sizable growth again this year, but I think that's now greater than the U.S. population. So should we see that sort of start the flat now, or are you starting to get international patients into that database? I just want to try to reconcile that in terms of where we are. And then any update relative to the consumer opportunity being able to leverage that registry and to that opportunity you talked about in 2020? Thanks.

[Keith Dunleavy:]

Sure. Well, there is a lot in there for a follow-up question, Glen.

[Glen Santangelo:]

Sorry about that.

[Keith Dunleavy:]

No, good questions, all good questions. So the more square registry, because it's funded to merely linked going back quite some time, it does have some patients obviously who have died, right. So the pharmaceutical industry, the device industry all of that real-world data of – frankly, why did that patient die? What were the circumstances is very valuable, right. So we have patients obviously that may have died in 2012, 2013, 2014, 2015, they stay in the more squared registry and is frankly very valuable data to have extremely deep and linked a total step on those patients. So that's why the number can climb above what is the current population of the U.S. This dataset today is a United States dataset, obviously there are some non U.S. citizens in that data as they reside here in the United States, but it is from U.S. locations of data source. Also during our Investor Day, we'll talk more to your question about international elements of that going forward one of our areas of excitement. And then lastly you talked about, what's the rate that we should see expand, as you see a flattening, as you would rightfully expect, as you approach near the whole population, certainly that's not going to continue to grow at the same rate. And you've seen that I think in our data where the better proxy becomes the number of medical events in there, which interestingly reflects, if you look at the climb year-over-year this quarter, you're seeing the medical event impact of COVID, right as people were less able to go to the hospital, go to the doctor. But yes, the medical event count will be a greater reflection of the continued data flows and growth of the more squared registry as you correctly point out the membership will have a slower curve to it at this point.

[Glen Santangelo:]

Okay. Thanks for all the comments.

[Keith Dunleavy:]

Absolutely. Glen.

[Keith Dunleavy:]

And with that, I'd really like to thank everybody for joining us this evening. Before I wrap up, I'd like to touch and reiterate on a few points. First of all, we're seeing, as I hope you see really strong demand for our platform with significant new sales and continued robust sales pipeline. Second implementations continue to come in an online as planned resulting in a deepening layering of the compounding subscription based growth that we've been speaking of now for some time. Third, we're seeing a rising appreciation for the differentiation of our data and the analytical capabilities across the marketplace as they can better understand the value impact that it delivers. Forth, our investments in further accelerating our growth, the increasing in our sales and marketing and delivery and innovation, they are showing really nice, strong results. So simply put – we're executing well, and we see a strong year ahead and strong years ahead. Now with that, I'll close by, as I mentioned earlier inviting all of you to our 2021 Investor Day, which will be on May 18, you'll see an announcement tomorrow morning out on this. And with that, thank you all for taking time this evening to join us and thanks for your interest in Inovalon. Good night.

[Operator:]

This concludes today's conference call. Thank you for participating, you may now disconnect.