Inovalon, Inc., the Bowie, Maryland located cloud-based analytics and Big Data tech provider for healthcare had filed for an initial public offering on the 30th of last month, according to SEC filing, thus becoming the first healthcare technology IPO of 2015.
Inovalon is seeking $500M in an initial public offering, with the ticker “INOV” on NASDAQ listings. HIT Consultant reports that the outfit will utilize its IPO earnings for “acquisitions of complementary businesses, technologies, or other assets or to repay outstanding indebtedness,” as outlined in its filing.
What stands out in the filing is that the company reveals that its top clients account for a disproportionate share of its revenue, reports Modern Healthcare. “Through Sept. 30, 2014, its top 10 clients accounted for nearly 70% of its $271 million in revenues,” it said. Inovalon’s revenue has been going upward, with $ 51.8 million in net income in 2014 from last year’s $26.9 million. However, it warns that its revenues and profits may be volatile.
Healthcare along with Data Analytics has been attracting capitalists in the last few years as was pointed out by Rock Health through a year end study that showed that 2014 saw venture funding for digital health companies surpass $4.1 billion, thus providing a favourable scenario for Inovalon’s IPO, the end of which, however, remains to be seen.
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(Image credit: Inovalon)