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Forward-looking statements

This presentation contains “forward-looking” statements that are based on our management’s beliefs and assumptions and on information currently available to management. These forward-looking statements include, without limitation, statements regarding the industry, business strategy, plans, goals and expectations concerning market position, product expansion, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information of Tabula Rasa HealthCare, Inc. (“Company”). When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this presentation. The Company’s actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.

This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates.

This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix.

Medication Risk Mitigation2

Tabula Rasa HealthCare at a Glance

• Founded late 2009

• First PACE contract 1/1/2011

• HQ in Moorestown, NJ

• ~600 FT employees

• ~170 clients

• 98% recurring revenue retention

• IP Patents & Significant Science that is difficult to replicate

• Multi-billion $ U.S. TAM

Tabula Rasa HealthCare has developed a proprietary software platform that reduces adverse drug events and lowers healthcare costs in at-risk populations

Clinical Intelligence Call Centers Phoenix, AZGainesville, FL Columbus, OHSan Francisco, CA

Revenue ($M) Adjusted EBITDA


$94.1

$134.5

FY16 FY17

$13.6

$18.3

FY16 FY17

Tucson, AZMoorestown, NJAustin, TX

Combined Medication Risk Mitigation® Product Portfolio

Proprietary Medication Risk Mitigation Matrix®

Mar

kets

Serv

ed PACE Payors & Pharmacists

Consumers

Product Portfolio

RxCompanion

• Prospective (prior to

submitting to a

phcy)

• Prescriber-centric

• Secure instant

messaging with a

certified PharmD

• Closed system (e.g.,

hospital, network

docs)

• Concurrent (at

the pharmacy

prior to being

filled)

• Retrospective

(risk-

stratification of

a large cohort)

• Prior to purchasing

an OTC/Herbal

medication

• Secure instant

messaging with a

certified PharmD

• Part D MTM

• Medicaid MTM

• Licensing to national

pharmacy

Investment Highlights

First mover in ADE medication risk mitigation software & decision support tools recent launch of proprietary Medication Risk Score

Proprietary, scalable solution reduces ADEs, improves outcomes and lowers cost clients report up to 50% reductions

Adverse Drug Events (ADEs) prevalence is a large; untapped and growing market—2016 spent $450 B Rx Expenditures and $528 B on Cost of Illness1

Rapid migration to value-based care creates demand for our scalable solution

Profitable with high recurring revenue, EBITDA, and expanding margins


1Watanabe JH, McInnis T, Hirsch, JD, Annals of Pharmacother 26March2018 https://www.ncbi.nlm.nih.gov/pubmed/29577766

https://www.ncbi.nlm.nih.gov/pubmed/29577766

Impact of ADEs Annually in the U.S.

Physician office visits

3.5 millionHospitalizations

125,000

Affected hospital stays

2 million20% of Re-admissions

1.7 to 4.6Increased days per affected

hospital stay

1.7 to 4.6

Emergency department visits

1 millionDeaths

100,000Deaths

100,000

RIP


Increase of 12% from 20 years ago

50% of seniors in UK on 5+ Meds

Approximately 20 million people

39% of seniors in U.S. on 5+ meds

https://www.cdc.gov/nchs/data/hus/hus15.pdf#079

http://www.telegraph.co.uk/news/2017/11/15/half-over-65s-take-least-five-drugs-day

Source: Alliance for Human Services and HHS

Medication Risk Mitigation

The Pandemic of Preventable ADEs --Representing the 4th Leading Cause of Death.

The Need for Personalized Pharmacotherapy is urgent

Hospital Utilization Review ADEs Impact: Cost of Drug-Related Morbidity and Mortality Studies


It still rings true: For every dollar we spend on prescription medication, we spend more than another dollar trying to address problems caused by the medications.

$67

$101

$251

$450

$77

$177

$290

$528

1995 2000 2008 2016

Rx Spending Versus Cost of Illness* 1995-2016(*Drug Related Morbidity and Mortality)

Rx Spend (billions) COI (billions)

1Watanabe JH, McInnis T, Hirsch, JD, Annals of Pharmacother 26March2018 https://www.ncbi.nlm.nih.gov/pubmed/29577766

https://www.ncbi.nlm.nih.gov/pubmed/29577766


TRHC’s New, Unique Multi-Drug Analysis Software

TRHC’s novel software to guide pharmacists and prescribers

toward individualized medication decision support

One-to-One Drug Risk Analysis Simultaneous Multi-Drug Risk Analysis

This one-to-one drug interaction software is three decades old,

and is embedded in EHRs, Pharmacies, PBMs, etc.

9


• Enhanced MTM | Innovations in MTM• SaaS and Service Based Models

Identification

Intervention

Data Analytics

Comprehensive Medication Management

Targeted Support | Drug, Disease or Condition

Star Ratings & HEDIS Scores

Simultaneous, Multi-Drug Interaction

Analysis

• MedWise Advisor® Risk Stratification

• Population Risk Distribution Analysis

• Individual Risk/Safety Scoring

• MedWise Advisor® Medication Risk Mitigation Strategic Deployment to Reduce Risk Scores

• Medication Safety Call Center Support (Primary/Secondary)

• Provider/Patient Engagement

• Member Engagement• MedWise Advisor® Medication Reconciliation• Leveraging Success (Osteoporosis, etc.)

• Opioids, Diabetes, Falls

• Reminder Packaged Medications (PACE Only)

Medication Risk Innovations

Care Transitions

• MedWise Advisor® Medication Reconciliation• In-Home | Call Center

• Cohort Comparisons• Opportunity Analysis

Personalized Medication Risk Management Portfolio


Decreases Medication-

Related RiskReduces Adverse Drug

Events

Enhances Compliance

and Quality of Care

Improves Medication

Outcomes

10

Why is Medication Risk Score Important, besides QOL?

• For members with a high medication risk score, healthcare expenditures are twice as high on average than for members with lower risk scores.

• The above chart illustrates our goal to identify and remediate member medication risk – improving medication safety and reducing cost.

• Extracted from >13 MM patients medical and pharmacy claims.• Does not include medications that were OTC, Herbal, Recreational, Samples, $4 Generics.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

11 1716 3029282524231210976 22210 8

CK’s Medication Risk Score

34-43

272621 151413 201918 31-33

543

20

+ =

hig

h r

isk

Lower drug risk correlates with lower medical costs

Higher riskLower riskA

nn

ual

ize

d M

ed

ical

Sp

en

d(2

01

6 d

olla

rs)


Medication Risk Mitigation + Medication Decision Support Yields:Reduced ADEs, ER visits, Hospitalizations, and Cost Saving Millions

12

Clients have reported that our solutions have contributed to improved outcomes for their patients

Southeast Client

Midwest ClientNortheast Client

East Coast Client

Hospitalizations by census

Hospital admissions PMPM

Falls by census (%)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017

Ho

sp

ita

liza

tio

ns p

er

10

0

me

mb

ers

pe

r m

on

th

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016

Ho

sp

ita

liza

tio

ns p

er

10

0

me

mb

ers

pe

r m

on

th

$600

$650

$700

$750

$800

$850

$900

$950

$1,000

$1,050

Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016

Medication spend PMPM

0.0

5.0

10.0

15.0

20.0

25.0

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Fa

lls p

er

10

0 m

em

be

rs p

er

mo

nth

MRM involvement MRM involvement

MRM involvement MRM involvement


Markets & Growth Strategy

Tabula Rasa’s Matrix is Applicable in All At-Risk Settings

14

Medication Risk Mitigation Matrix

PACE represents ~70% of revenue andHas grown annually at ~20%

Medicare

• ACOs

• Commercial

• Self-Insured Employers

• Retail Pharmacies

Incremental At-Risk markets expected to contribute to

margin expansion

Current Populations Served

April 2018 CMS adopted rule encourage broader

adoption of MTM services (change from ALR to MLR)

Medicaid Providers

PACE


15

Growth Strategy

Expand PACE Leadership


Deepen Existing Relationships

Grow Non-PACE Business

Service Expansion

Only 20% penetration based on members served

350+ health plan customers represent material opportunity

MTM, Stars, Opioid Misuse programs

Shifting pipeline mix to higher margin licensing & service contracts

16

In Addition Sustained PACE Growth, We Continue to Expand into Health Plans and Provider Organizations


Combination Creates Market Leading Position


Flexible and highly scalable service delivery platform

Services performed beyond traditional MTM requirements

Track record of meeting 100% of client goals

Recent expansion of markets and to Medicare, National Pharmacies, and

software licensing

Proprietary medication risk identification and stratification

tools

Validated Medication Risk Score

Demonstrated reductions in medical spending and optimized outcomes

Participant in EMTM model pilot which includes a new method to leverage community pharmacists

Consolidated business: The market leader in medication safety

Acquisition of SinfoniaRX competed September 6, 2017

18

Analytics platform demonstrating optimized outcomes

Extensive Clinical & Management Expertise

First Mover Advantage

Market Leadership

Direct Sales to Payers with Ongoing Client Liaison

Support

High Customer Retention

Long-Term Contracts

Highly Scalable Platform

Aligned Incentives with Value-Based Care

TRHC Intellectual Property

High Barriers to EntrySolid Competitive Advantage

Medication Risk Mitigation Patents

Medication Management System and Method #8,392,220

Medication Management System and MethodMedication Risk Mitigation Matrix System and MethodLong QT-JT: Index & Score Method

Issued Pending

Proprietary Multidrug Medication Risk Matrix

Data analytics demonstrating up to

50% reductions in hospitalizations, ER

Visits and readmissions

Applicable in a Variety of Markets (Pace, Part-D Opioids,

ACO)

Proprietary Medication Risk

Score

Adaptable Solution Delivery

(License, PMPM,

Product)

Unique Market Position, High Barriers to Entry and Deep Competitive Moat

Financials

Track Record of Consistent Growth


Annual Revenue ($M) Annual Adjusted EBITDA ($M)

Per-Member Per-Month and Subscription-Based Revenue Models

98% Revenue Retention

Exclusive and Multi-year Contracts

$3.0

$8.6

$13.6

$18.3

$30.0

2014 2015 2016 2017 2018E

Anticipated Service revenue growth of approximately 100% in 2018

$48

$70

$94

$135

$193

2014 2015 2016 2017 2018E

$21.9$27.2

$6.0

$16.8

1Q'17 1Q'18

133

170

FY16 FY17

$79.4$98.5

$14.6

$36.0

FY16 FY17

Strong financial performance

Adjusted EBITDA ($M)

Revenue ($M) Clients

Gross profit ($M)

Margin 30.7% 30.4% 27.9% 29.7% 13.6% 9.8% 11.7% 14.5%

21

$43.9

$28.0

$134.5

$94.1

Product Revenue Service Revenue


$13.6

$18.3

FY16 FY17

$28.9

$40.9

FY16 FY17

$3.3$4.3

1Q'17 1Q'18

$8.3

$12.3

1Q'17 1Q'18

GM: Low 20’s

Medication Risk Management Offering Summary

22

PACE Payors and At-Risk Providers

Technology


Clinical Services

Medication Fulfillment

Technology Technology

Clinical Services

PMPM + FFS PMPM or PUMPM SaaS

Gross Margin: Low 20’s Gross Margin: ~40% Gross Margin: ~80%

Shifting Business Mix Driving Increased Margins

23

Gross Margin: 17%2013Product Revenue

100%


2014

2015

2016

Product Revenue 97%

Gross Margin: 22%

Product Revenue 86%

Gross Margin: 30%

Product Revenue 84%

Gross Margin: 31%16%

14%

3%

Next 3 - 5 Years

Gross Margin: 35-40%(Estimated)

Product Service

4Q17Product Revenue

62%Gross Margin: 33%38%

Financial Outlook

24

$46m - $47m

$0.4m – $0.9m

$6.0m - $6.5m

Revenue

Net Income (Loss)

Adjusted EBITDA


2Q18 Guidance 2018 Guidance

$188m - $198m

$(11.4)m - $(7.4)m

$28m - $32m

Appendix


Our Focus: Identifying and Mitigating Adverse Drug Events by Personalizing Medication Regimens, Using Science

A medication error is defined as “inappropriate use of a drug that may or may not result in harm;” such errors may occur during prescribing, transcribing, dispensing, administering, adherence, or monitoring of a drug

In contrast, ADRs and ADEs are “harms directly caused by a drug at normal doses”

Aug 2014, https://health.gov/hcq/pdfs/ade-action-plan-508c.pdf


74% of physician office visits involve drug therapy

--CDC

26

Proficient Management Team

Calvin H. Knowlton, PhD

Chief Executive Officer

Orsula V. Knowlton PharmD, MBA

Chief Marketing & New Business Development Officer

Janice R. Casserly, JD

SVP, Human Resources

Brian W. Adams

Chief Financial Officer

Kevin J. Dill, JD

Chief Compliance Officer & General Counsel

Joseph J. Filippoli, MBA

Chief Information Officer

Brian J. Litten, JD

Chief Strategy Officer

Robert L. Alesiani, PharmD

Chief Pharmacotherapy Officer

Michael Greenhalgh, RPh

Chief Operations Officer

Michael J. Ristagno, PharmD, MBA

Chief Client Officer

Kevin P. Boesen, PharmD

CEO, SinfoniaRx

Richard O. Schamp, MD

Chief Medical Officer

Philip W. Heath, MS

Chief Administrative Officer

Thomas N. Wilson

Chief Technology Innovations Officer

Chief Accounting Officer

Andrea C. Speers


TRHC Intellectual Property

Medication Risk Mitigation Patents

• Medication Management System and Method

• # 8,392,220 • Medication Management System and Method

• Medication Risk Mitigation Matrix System and Method

• Long QT-JT: Index & Score Method

Medication Risk Mitigation Copyrights & Trademarks

• Source Code and Manuals of EireneRx® - 2012, 2015

Copyrights Trademarks

Issued Pending

• Tabula Rasa HealthCare• CareKinesis• MedWise Advisor• EireneRx & EireneRxCS• Capstone Performance

System• Medliance

• CareVentions• NiaRx• Medication Risk

Mitigationby CareKinesis

• Jack Russell Software Company

• WalletRxProprietary Undergirding of Scientific Processes and Application


Balance Sheet Summary

29

Period Ended

March 31, 2018 December 31, 2017

Cash $4,252 $10,430

Accounts receivable, net 20,372 17,087

Other current assets 8,315 $7,934

Current assets $32,939 $35,451

Noncurrent assets 150,478 152,381

Total assets $183,417 $187,832

Long term debt 1,894 1,705

Other liabilities 75,750 62,239

Total liabilities $77,644 $63,944

Shareholders’ equity $105,773 $123,888

Total liabilities & shareholders’ equity $183,417 $187,832

($ in thousands)

Three Months Ended March 31,

2018 2017

Net income (loss) ($18,094) ($2,593)

Add:

Interest expense 63 76

Income tax expense 2,650 95

Depreciation and amortization 4,048 1,765

Change in fair value of acquisition-related contingent consideration expense

13,521 21

Acquisition-related expense 164 -

Payroll tax expense related to stock option exercises - 83

Stock-based compensation expense 1,945 3,821

Adjusted EBITDA $4,297 $3,268

Reconciliation of GAAP Net Income to Adjusted EBITDA at 3/31

($ in thousands)

30

Adjusted EBITDA consists of net income (loss) plus certain other expenses, which includes interest expense, provision (benefit) for income tax,

depreciation and amortization, loss on extinguishment of debt, change in fair value of acquisition-related contingent consideration expense, change

in fair value of warrant liability, acquisition-related expense, payroll tax expense related to stock option exercises and stock-based compensation

expense. TRHC believes the exclusion of these items assists in providing a more complete understanding of the company’s underlying operations

results and trends and allows for comparability with TRHC’s peer company index and industry and to be more consistent with TRHC’s expected

capital structure on a going forward basis.

Reconciliation of GAAP Net Income to Adjusted EBITDA

($ in thousands)

31







2014 2015 2016 2017

Net income ($1,107) ($2,864) $5,521 $12,791

Add:

Interest expense 1,354 5,915 4,488 688

Income tax (benefit) expense (409) 328 541 (9,339)

Depreciation and amortization 1,817 3,933 5,115 9,512

Change in fair value of acquisition-related contingent consideration expense 790 (2,059) (338) (6,173)

Change in fair value of acquisition-related consideration expense 55

Change in FV of warrant liability 269 2,786 (639) -

Loss on extinguishment of debt - - 6,411 -

Acquisition-related expenses - - - 921

Payroll tax expense related to stock option exercises 95

Stock-based compensation expense 254 565 4,250 8,752

Adjusted EBITDA $2,968 $8,604 $14,362 $17,247

Guidance Reconciliation of GAAP Net Income to Adjusted EBITDA

32







2Q18 2018

Low High Low High

Reconciliation of Adjusted EBITDA to Net Income

Net income $0.4 $0.9 ($11.4) ($7.4)

Add:

Interest expense 0.1 0.1 0.4 0.4

Income tax benefit (0.5) (0.5) 1.2 1.2

Depreciation and amortization 3.8 3.8 15.5 15.5

Stock-based compensation expense 2.2 2.2 8.6 8.6

Change in fair value of contingent consideration - - 13.5 13.5

Transaction based costs - - 0.2 0.2

Adjusted EBITDA $6.0 $6.5 $28.0 $32.0

($ in millions)

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