mdso 2016 financial analyst day jl...

C 8H 9N

O 2

Senior Director, Investor Relations

Anthony D’Amico

Safe Harbor StatementThis presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation ReformAct of 1995 that involve significant risks and uncertainties about Medidata Solutions, Inc. (“Medidata”), including but notlimited to statements about Medidata’s forecast of financial performance, products and services, business model,strategy and growth opportunities, and competitive position. You are cautioned that such statements should not be readas a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or bywhich, such performance or results will have been achieved. Such statements are subject to risks and uncertainties thatcould cause actual performance or results to differ materially from those expressed in these statements. In particular,the risks and uncertainties include, among other things, risks associated with possible fluctuations in our financial andoperating results; errors, interruptions or delays in our service or our Web hosting; the financial impact of any futureacquisitions; our ability to continue to release, and gain customer acceptance of, new and improved versions of ourproducts; changes in our sales and implementation cycles; competition; our ability to retain and expand our customerbase or increase new business from those customers; our ability to hire, retain and motivate our employees andmanage our growth; regulatory developments; litigation; and general developments in the economy.

For additional disclosure regarding these and other risks faced by Medidata, see disclosures contained in Medidata'spublic filings with the Securities and Exchange Commission (the “SEC”) including, the “Risk Factors” section ofMedidata’s most recent filings. You should consider these factors in evaluating the forward-looking statements includedin this presentation and not place undue reliance on such statements. The forward-looking statements are made as ofthe date hereof, and Medidata undertakes no obligation to update such statements as a result of new information.

Co-Founder, Chairman and CEOTarek Sherif

Co-Founder, PresidentGlen de Vries

Managing DirectorIan ShaferAccenture

Fireside Chat

Chief Operating OfficerMike Capone

Medidata

Break andProduct Demos

Chief Financial OfficerRouven Bergmann

Management Q&A

Co-Founder, Chairman and CEOTarek Sherif

AgendaInvestor RelationsAnthony D’Amico

Co-founder, Chairman & CEOTarek Sherif

Chief Financial OfficerRouven Bergmann

Break and Product Demos~10:05am – 10:35am


Management Q&A

Mike Capone & Ian Shafer

Co-founder, Chairman & CEOTarek Sherif

Co-founder & PresidentGlen de Vries

Fireside Chat – Medidata & Accenture

Tarek | Glen | Mike | Rouven

Lunch and Product Demos~12:25pm – 2:00pm

On Screen Video

Co-Founder, Chairman and CEO

Tarek Sherif

C 8H 9N

O 2

Our Business Today

We Have Delivered Strong Growth

106 140

166 184 218

277

335

393

462

(4)24 39 46 47

67 74 89 105.5

2008 2009 2010 2011 2012 2013 2014 2015 2016E 1

Revenue (USD million)

1. Represents mid-point of 2016 guidance

EBITDAO (USD million)

Strong and consistent EBITDAO growth… …created significant shareholder value

MDSO NASDAQ

553%

191%

MDSO vs. NASDAQ, cumulative

Driven by Strong Fundamentals

350 397 486

611

789

2012 2013 2014 2015 2016*

Growth driven by new customers… ...as well as increased share of wallet

2012 2013 2014 2015 2016*

1.7x1.9x

2.3x

1.4x

1.0x

Revenue growth vs. 2012Top 30 Customers, 2016

Customers at year-end

* Through Q3 2016

Talent

• 85% employee engagement• Fortune 100 Best Places

to work for millennials

We Continue Investing in Core Capabilities

R&D Investment

• $500 million cumulative R&D investment since 2008

• Exceeds any player in the industry

GTM

• New platform branding –Architecture of Hope

• Doubled Customer event attendance – Symposium

§ Capitalized development cost per drug is $2.6B – growing at 8.5% over inflation

§ Trial complexity increasing – CRF pages per protocol up to 169 from 55 (207%) in a decade

Trials costly & inefficient

§ Over 200 clinical technology vendors – leading to siloed solutions landscape§ Single clinical trial can run on 7-25 different systems

Fragmented solutions landscape

Current State of Clinical Development

§ Healthcare data volume growing at 48% annually – reaching 2,314 exabytesby 2020

§ Insights from data not keeping pace due to poor data quality, lack of standards and insufficient integration

More data but lack of

insight

Medidata’s Unique Solution

IntegratedPlatform

Data andAnalytics

Industry Expertise

Ecosystem

Integrated Platform

Integrated Platform

• Single clinical trial can run on 7-25 different systems• 2/3 of customers believe technology integration is significant issue• Majority willing to trade functionality for integration

• Unified architecture providing solutions across the entire clinical research process

• Comprehensive reporting & analytics with one, single source of truth• Industry-leading depth and breadth

Why it Matters


Leading Industry Expertise

• Highly regulated industry – >100 regulators worldwide• Increasing scientific complexity – more end-points (+85%) and

procedures (+70%) in a decade• Patient recruitment incredibly complex – 50% of sites under-enroll

• Supported 400+ regulatory inspections/client audits over last 6 years

• >16K person years of clinical development industry experience on staff

• >12K clinical trials run on Medidata platform to-date

Why it Matters


Industry Expertise

Largest Life Sciences Eco-System

92 CRO Partners, including 19 of the top 20

7 Systems Integrator Partnerships –rapidly deepening

25 Strategic & Technology Partnerships – 8 added 2016 to-date

Unmatched Data & Analytics

• Healthcare data volume growing at 48% annually – reaching 2,314 exabytes by 2020

• Cost of bad data in healthcare is estimated at >$300 Billion annually in the US alone

• Huge opportunity for operational efficiency & scientific insights

• Unmatched scale – largest set of clinical trial data worldwide• Highest Quality – machine algorithms to help standardize• Innovation – new ways to ingest sensor and genomic data• Expertise – predictive modelers, biostatisticians and data scientists

Data & Analytics

Why it Matters


Massive Industry Transformation§ Patient-centric data: in 2020, 478 million wearable electronic devices will be sold§ By 2019, 30% of hip & knee replacements monitored with wearables and IoT§ Precision medicine driven by technology & scientific advances, e.g. cost of

genomic sequencing down 96% in 5 years, 3D printing becoming ubiquitous

Transformation of medicine

§ Move from volume (treatment)-driven to value (outcomes)-driven care § Increased performance-based risk sharing today, e.g. Repatha and Entresto§ Medicare plans to make half of its payments based on performance agreements

by 2018

Evolving commercial

models

§ FDA developing regulatory platform to encourage innovation as part of US Precision Medicine initiative

§ ICH E6 standard will fundamentally change the way that trials are monitored

Regulatory changes

Outcomes-FocusedA N A L Y T I C S

MDSO Opportunity to Drive Healthcare Transformation

Digitally ConnectedP A T I E N T S

New Models in Life Sciences for § Discovery, § Development § and Commercialization

§ Personalized Medicine § Value Based Care

Core ResearchTRANSACTIONS

§ Clinical§ Operational§ Financial

MED

ICAL

PR

ECIS

ION

1:1

1:ALL

TAM

Medidata, Co-Founder and President

Glen de Vries

© 2016 Medidata Solutions, Inc. – Proprietary and Confidential

PLANSTUDY

OPTIMIZEOUTCOMES

SUPPORTSITES

CONDUCT STUDY

ENGAGEPATIENTS


CONDUCTSTUDY Rave EDC

Rave Web Services

Imaging

Data Management

Randomization

Medical Coding

Safety Data Transmission


Data and Medical Precision

Time

Info

rmat

ion

Pot

entia

l

Genotype

Total Phenotype

In-Clinic Physiology

Lab (Sample)

Data

Behavior

Imaging

Real WorldPhysiology

Cognition

Gene Sequence,

“’omics”

Medidata Clinical Trial Genomics

Introducing

On Screen Video


ENGAGEPATIENTS

SensorLink

AppConnect


SUPPORTSITES

Site Monitoring

Risk-Based Monitoring

Centralized Analytics

Payment Calculation

Financial Transparency

Disbursements


Site EHR/EMR

Studies Per SiteMedidata Platform Usage, January – August 2016

Number of Studies

% o

f Site

s


Announcing Medidata eConnect

SUPPORTSITES

eConnect


CONDUCTSTUDY

Digital Patient

Data

EDC

EMReSource

EHR

ImagesGenomics

Labs


OPTIMIZEOUTCOMES


PLANSTUDY

OPTIMIZEOUTCOMES

SUPPORTSITES

CONDUCT STUDY

ENGAGEPATIENTS

MEDIDATAData Augmented Platform

LIFE SCIENCES PROF.

§ 800 customers

§ 12,000+ Studies

§ 70+ Partners

HEALTHCARE PROFESSIONALS

§ 3,100,000+ Trial Subjects

§ 420,000+ Sponsor / Site

Relationships

PATIENTS

§ 835,000+

data points / day


OPTIMIZEOUTCOMES

Centralized Statistical

Analysis (CSA)Increased Data Quality

Machine Learning and

Targeted Monitoring

Scientific Insight

SyntheticControl Arms

Standardize, Pool and

Recycle Data

OPAL Diagnostics

Operational Efficiency

Benchmark and improve performance

DigitalBiomarkersmHealth

Algorithmic Patient

Monitoring

Precision Medicine

Clinical Trial Genomics

Integrate Genomic Data with Turnkey

Analytics

OPAL Site Selection

Better Site Performance

Cross-industry performance

metrics


Synthetic Control Arms

Multiple historic clinical trials in same indication

Access to patient level information allows filtering and matching of patients

Data exploration by subgroups

Patient Level Matched

Control Arm


PLANSTUDY

OPTIMIZEOUTCOMES

SUPPORTSITES

CONDUCT STUDY

ENGAGEPATIENTS

Real Business Outcomes

61% Increase in eCRF

reuse

33% Reduction in eCRF

design period

31% Reduction in non

enrolling sites

40% Improvement in enrollment

49% Reduction in

protocol complexity

7 Days reduction in monitoring

on-site days per year

34% Reduction in

SDV coverage

53% Reduction in subject visit to query close cycle time

Managing DirectorIan ShaferAccenture

Fireside Chat


Medidata

Break andProduct Demos

Chief Financial Officer

Rouven Bergmann

Momentum

Scaling Revenue and Profits

Strategy

Path to $1B+ Revenue

Investment Highlights

Opportunity

$10-$12BTotal Addressable Market

Momentum

Scaling Revenue and Profits

Great momentum in Q3…

1. Growth rates adjusted for contract modification in Q3’15.2. Calculated billings defined as revenue plus change in deferred revenue.3. Non-GAAP Operating Income (or EBITDAO) excludes stock based compensation expense, depreciation and amortization, and other non-GAAP adjustments.

Refer to “Reconciliation of GAAP to Pro Forma Results” for Non-GAAP Operating Income calculations.4. Represents subscription gross margin on a GAAP basis.

Q3 key performance indicators

TTM Operating Cash Flow

$79MSubscription Gross

Margin4

84.2%EBITDAO Margin3

24.4%

Total Revenue1

$120M

+20%y/y

Subscription Revenue1 $102M

+20%y/y

Calculated Billings2

$121M

+29%y/y

Number of Products Added by Customers

+80%y/y

Total Customers With 4+ Products

+33%y/y

… building on strong multi-year performance

218

277

335

393

462

47 67 74 89 105.5

2012 2013 2014 2015 2016E

Revenue (USD million)EBITDAO (USD million)

1. Represents mid-point of FY 2016 guidance for total revenue between $450 and $474 million and EBITDAO between $102 and $109 million as of 10/25/16.

1

Momentum driven by existing customers…

882 1,183

1,569

2,065

397 486 611 789

2013 2014 2015 Q3'16

1. Excludes acquired Imaging-only customers with limited cross-sell potential.

Number of Products DeployedNumber of Customers

2.2DENSITY

2.4DENSITY

2.6DENSITY

2.8DENSITY1

Total Customers

Momentum driven by existing customers…


Number of Products DeployedNumber of Customers

2.2DENSITY

2.4DENSITY

2.6DENSITY

2.8DENSITY1

Total Customers

4.5DENSITY

5.6DENSITY

5.8DENSITY

6.6DENSITY

Top 30 Customers

2013 2014 2015 Q3’16

Multi Product % of New Customer Count

61%43%

2013

47%

2014 2015

78%

Q3’161


… and by new customer platform adoption

4%20%

76%64%

22%

25%

57%

11% 21%

Q3'12 Q3'16

% of Total Customers1

1. Excludes acquired Imaging-only customers with limited cross-sell potential2. FY 2016 estimate

1 Product 2-3 Products 4+ Products

Subscription Revenue Contribution

20162

We are successful in selling our platform

2012 2013 2014 2015 2016

Customers grow with us over time

2.0x

2.9x

2.2x1.8x

Pre IPO incl. 2009

2013

2015 1.2x

2014

IPO to 2012

Note: Multiples represent growth relative to cohort’s first year in series starting in 2012.

Annualized subscription revenue by customer acquisition date

Opportunity

$10-$12BTotal Addressable Market

PLANSTUDY$0.5B

SUPPORTSITES

$3B

ENGAGEPATIENTS

$1.5B

CONDUCT STUDY$3B

$10–12B MARKET OPPORTUNITY

OPTIMIZEOUTCOMES

$3B+

Source: Medidata estimates

SUPPORTSITES

$3B

ENGAGEPATIENTS

$1.5B

CONDUCT STUDY$3B

OPTIMIZEOUTCOMES

$3B+PLANSTUDY$0.5B


Need

Better planning & design for efficiency, simplicity and speed

Medidata Advantage

Industry-leading, cross-sponsor data, enabling optimized study design

Design Optimizer Grants Manager


ENGAGEPATIENTS

$1.5B

CONDUCT STUDY$3B

OPTIMIZEOUTCOMES

$3B+PLANSTUDY$0.5B

SUPPORTSITES

$3B


Need

Improve site performance and engagement, reduce risks, drive more predictable outcomes

Medidata Advantage

Leveraging real-time data across platform increasing accuracy and speed

RBM

Payments

TSDV


SUPPORTSITES

$3B

CONDUCT STUDY$3B

OPTIMIZEOUTCOMES

$3B+PLANSTUDY$0.5B ENGAGE

PATIENTS$1.5B

Medidata Advantage

Regulatory compliant infrastructure to integrate patient-centric data

Need

Objective real-world patient data to drive therapy safety and efficacy

ePRO

SensorLink

AppConnect



SUPPORTSITES

$3B

ENGAGEPATIENTS

$1.5B

OPTIMIZEOUTCOMES

$3B+PLANSTUDY$0.5B

CONDUCT STUDY$3B


Rave

Imaging

CTMS SafetyGateway

Balance Coder

Medidata Advantage

Superior customer ROI due to platform integration & innovation leadership

Need

Integrated, flexible platform to efficiently operate clinical trials across therapeutic areas, phases


SUPPORTSITES

$3B

ENGAGEPATIENTS

$1.5B

CONDUCT STUDY$3B

PLANSTUDY$0.5B

OPTIMIZEOUTCOMES

$3B+


Medidata Advantage

Industry leading data set, pure cloud-based and analytical expertise powered by AI

Need

Data analytics to optimize clinical outcomes and lower costs

CSA

Site Selection

Synthetic Control Arm

Opal Genomics


PLANSTUDY$0.5B

SUPPORTSITES

$3B

ENGAGEPATIENTS

$1.5B

CONDUCT STUDY$3B


OPTIMIZEOUTCOMES

$3B+


Strategy

Path to $1B+ Revenue

Three key focus areas will fuel growth in 2017 and beyond

Density

Increase numberof products used byour customer base

Intensity

Expand usage of existing products across more trials,

therapeutic areas, geographies and phases

New Customers

Acquisition of new customers usingmultiple products

Strategic growth drivers

Today Density & Intensity 2020New

CustomersCustomers4+ products

78921%1

1,200+~40%+400

Products DeployedDensity

2,0652.81 +1,500 ~4,400

3.6~800

$462MTotal Revenue3 $1B+$100M+$450M

23%EBITDAO Margin3,4 27-30%

Our path to $1 Billion

ASF Revenueper Product2 1x ~1.3x+6% p.a.

1. Excludes acquired Imaging-only customers with limited cross-sell potential.2. Indexed to 2016, calculated individually for each product. Applied to product base with existing customers only – not applied to new customers.3. Represents mid-point of FY 2016 guidance for total revenue between $450 and $474 million and EBITDAO between $102 and $109 million as of 10/25/16.4. Non-GAAP Operating Income (or EBITDAO) excludes stock based compensation expense, depreciation and amortization, and other non-GAAP adjustments.

Refer to “Reconciliation of GAAP to Pro Forma Results” for Non-GAAP Operating Income calculations.

Driving our $12 billion opportunity

Current Revenue$462M1

$10-12B TAM

2020 Revenue:$1BN

3,500

Product Adoption

789

1,200

$450M

$100M Additional upsell potential

Cus

tom

ers New

customers

Grow density

Growintensity

1. Represents mid-point of FY 2016 guidance for total revenue between $450 and $474 million as of 10/25/16.

6x revenue potential with Top 30 customersCurrent product adoption of our Top 30 customers

2016 as % of Full Potential

% of 2016 Top 30 Revenue

20% 5% <5% 55% 5%

<10% <10% <5% >75% <5%

15%

100%

TOTAL PLAN STUDY

SUPPORT SITES

ENGAGE PATIENTS

CONDUCT STUDY

OPTIMIZE OUTCOMES

Long-Term Operating Model

Revenuey/y Growth Rate% Subscription

Gross Margin1

R&D % of Revenue1

S&M % of Revenue1

G&A % of Revenue1

393M

77%

24%

26%

20%

23%

462M

76%

25%

24%

17%

23%

1B+

Mid toHigh 70%s

Below or at 20%

Low 20%s

Below 15%

27-30%

Approx. 20% y/y

Mid toHigh 70%s

Mid to High 10%s

Mid to High 10%s

Low 10%s

Mid to High 30%s

2015 2016E 2020E$393M

17%86%

$462M18%85%

$1B+Approx. 20%Approx. 90%

LT

EBITDAO Margin2

1. Represents GAAP gross profit and GAAP R&D, S&M and G&A as a % of total revenue. 2. Non-GAAP Operating Income (or EBITDAO) excludes stock based compensation expense, depreciation and amortization, and other non-GAAP adjustments.

Refer to “Reconciliation of GAAP to Pro Forma Results” for Non-GAAP Operating Income calculations.

($ in millions) FY 20161,3

Net Revenue2 $450.0– $474.0Professional Services Revenue 68.0 - 70.0Non-GAAP Operating Income 102.0 - 109.0Adjusted Non-GAAP Net Income 54.5 – 59.0

Equivalent GAAP Operating Income 38.5 – 45.5Equivalent GAAP Net Income 16.5 – 21.0

Effective Tax Rate ~35%

2016 Guidance

1. 2016 guidance as of 10/25/16. Refer to “Reconciliation of GAAP to Pro Forma Results” for Non-GAAP Operating Income and Non-GAAP Net Income calculations.2. Represents management guidance for full-year 2016 total revenue between $450 - $474 million and professional services revenues between $68 - $70 million as of 10/25/15.3. While changes in the stock price could change the fully diluted share count, the company is assuming 57.3 million fully diluted shares.4. Adjusted subscription backlog equals subscription backlog plus outstanding intra-year renewals valued at an amount equal to the contracts to be renewed.

• Delivering on Initial 2016 Outlook

• 98% adjusted backlog coverage4 at guidance midpoint

Strong revenue visibility entering the year

334

290

12/31/159/30/15

Adjusted subscription backlog1 ($M) as ofprior year Q3/Q4

2016 Revenue Visibility as of:

+16%y/y

+19%y/y

347

12/31/20169/30/16

+20%y/y

+19%y/y

Subscription coverage 85%2

Adjusted subscription backlog equals subscription backlog plus outstanding intra-year renewals valued at an amount equal to the contracts to be renewed.Relative to currently implied mid-point of 2016 subscription revenue guidance.

2017 Revenue Visibility as of:

MomentumStrong & consistent

growth in financial and operational metics

StrategyClear path to $1B+

Revenue, supported by strategic drivers

Key Takeaways

OpportunitySuperior platform and

game-changing new products


Chief Operating Officer

Mike Capone


Attract Engineering and Business Talents

TALENT

Increase Customer & Partner Success and

Satisfaction

BUSINESS

Drive Technology Velocity and Vision

INNOVATION

Predictable Execution and Optimized Operating Model

OPERATIONALEXECUTION

Operations & Innovation


Sales Engine - Strengthened & PredictableQ1 2016$104.2MRevenue

+13% YoY

Q2 2016$114.6MRevenue

+17% YoY

Q3 2016$120M

Revenue +20% YoY*

+27%CRO BIDS

YoY Q3

Outstanding Momentum inMid-Market, Partner

and APAC

CRO Generated Growth: +28% Balance, +14% CTMS, +50% ePRO, +18% RBM 2016 YTD YoY Closed Deals

+14 CROs2016 YTD[6 in 2015]

Michael PrayEVP, Global Sales

Renee HartSVP, Partners

Mike WendellSVP, Global GTM

Christian Hebenstreit SVP, EMEA Leader

*Growth rate adjusted for contract modification in Q3’15


Professional Services - Differentiated Expertise+30%

Revenue Worldwide

YoY Q3

+17%Revenue

APACYoY Q3

+50%Revenue

EMEAYoY Q3

+37%Gross Profit

Worldwide YoY Q3

Solid Customer Satisfaction

99% Revenue Retention

Increasing Platform& Analytics Adoption

Analytics Growth, Study Migration

Broadening ExpertisePayments, Medical Writing,

Biostatisticsand Data Analytics


Marketing - (re)Built to Scale 40%

Marketing team

renewed

+60% YoY contribution

to active pipeline

+100% Symposia attendance

YoY

Goal = 20% incremental revenue is marketing sourced

10 Industry Awards+2 YoY

Simon MouyalSVP, CMO

Renewed Marketing Leadership team and new world-class Product Marketing team

Medidata 2016 Symposium Highlights

Introducing

On Screen Video


Unmatched Security Compliance


25% of Revenue

reinvested in R&D*

Technology – Innovation & Unification

New Office in Silicon Valley

Complete Data

Center Tech

Refresh

2016 Product Launches PaymentsAnalytics

EuropeanData Center

z

Ivan LatanisionVP, Product

z

Susan FinleyVP, QA

z

Clay StanleyVP, Engineering

Julie Iskow #64 on

InformationWeek ELITE

100

*2016 Estimate

Management Q&A

Co-Founder, Chairman and CEO

Tarek Sherif

Thank You

C 8H 9N

O 2

($ in thousands) 2009 2010 2011 2012 2013 2014 2015 YTD Q3’16

GAAP Operating Income $8,777 $23,307 $22,557 $27,893 $23,888 $20,064 $29,232 $32,711

Plus: Depreciation and amortization 10,580 9,179 7,817 7,934 6,936 10,435 10,822 10,901

EBITDA 19,357 32,486 30,374 35,827 30,824 30,499 40,054 43,612

Plus: Stock-based Compensation 4,730 6,494 8,820 10,914 36,143 37,953 48,987 31,155

Plus: Litigation settlement (1) - - 6,300 - - - - -

Plus: Contingent consideration adjustment (2) - - 223 319 239 - - -

Plus: Wire transaction loss (3) - - - - - 5,784 - -

Non-GAAP Operating Income 24,087 38,980 45,717 47,060 67,206 74,236 89,041 74,767

Reconciliation of GAAP to Non-GAAP Financial Results

1. Amount represents the effect of the settlement of litigation with Datasci.2. Amount represents the effect of changes in fair value of contingent consideration liability.3. Amount represents the effect of a pre-tax charge of $5.8 million associated with a previously announced international wire transfer fraud committed against the company and the related investigation costs.

($ in thousands) 2009 2010 2011 2012 2013 2014 2015 YTD Q3’16

GAAP Net Income $5,182 $22,817 $39,398 $18,020 $16,661 $6,092 $13,167 $18,143

Plus: Amortization 1,826 1,459 1,589 1,792 804 628 636 900

Plus: Stock-based Compensation 4,730 6,494 8,820 10,914 36,143 37,953 48,987 31,155

Plus: Litigation settlement (1) - - 6,300 - - - - -

Plus: Contingent consideration adjustment (2) - - 223 319 239 - - -

Plus: Wire transaction loss (3) - - - - - 5,784 - -

Plus: Reversal of valuation allowance (4) - - (19,037) - - - - -

Plus: Non-cash interest expense on convertible senior notes (5) - - - - 4,715 12,458 13,180 10,364

Tax impact on add-back items - - - (4,689) (16,760) (22,729) (25,121) (16,968)

Adjusted Non-GAAP Net Income 11,738 30,770 37,293 26,356 41,802 40,186 50,849 43,594

Reconciliation of GAAP to Non-GAAP Financial Results

1. Amount represents the effect of the settlement of litigation with Datasci.2. Amount represents the effect of changes in fair value of contingent consideration liability.3. Amount represents the effect of a pre-tax charge of $5.8 million associated with a previously announced international wire transfer fraud committed against the company and the related investigation costs.4. Amount represents the effect of tax benefit recognized as a result of the reversal of the majority of the valuation allowance.5. Amount represents the non-cash interest expense associated with MDSO’s convertible senior notes issued in August 2013 and due August 2018.

mdso 2016 financial analyst day jl...

Documents