Shares of cloud-based analytics company Inovalon Holdings (NASDAQ:INOV) increased as much as 20% on Thursday following the company's third-quarter earnings release. The gain, however, has pulled back slightly. Shares are up about 12% at the time of this writing.
Inovalon reported third-quarter revenue and adjusted earnings per share (EPS) of $105 million and $0.10, respectively. The stock's gain on Thursday is likely because these results landed ahead of analyst expectations. On average, analysts were expecting revenue and adjusted EPS of $103 million and $0.06, respectively, according to data compiled by Thomson Reuters.
CEO Keith Dunleavy seemed pleased with the results. He said:
Third quarter results demonstrate further progress against our long-term strategic plan. We continued the expansion of our platform capabilities, our connectivity reach, and our engagements in the adjacent pharmaceutical and provider markets. Additionally, our ongoing achievements in interoperability, automation, and cloud-based architectures enabled increasing flexibility and efficiencies within our platform, which translated into further value for our clients and increased gross margins for our business.
Looking ahead, Inovalon importantly reaffirmed the company's full-year guidance, which calls for revenue in the range of $470 million to $490 million and adjusted EPS of $0.28 to $0.35.
It's also worth noting that, going forward, the company will have a new chief financial and operating officer. Inovalon promoted Chris Greiner to the role and announced that Tom Kloster has stepped down from the CFO position "to pursue other opportunities."