Latest Presentation

1. Investor presentation
May 2016

2. 2
Safe harbor statement
This presentation contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than statements of
historical facts, contained in this presentation, including statements
regarding our strategy, future operations, future financial position, future
revenue, projected costs, prospects, plans and objectives of management,
are forward-looking statements. The words ‘‘anticipate,’’ ‘‘believe,’’
‘‘estimate,’’ ‘‘expect,’’ ‘‘intend,’’ ‘‘may,’’ ‘‘plan,’’ ‘‘predict,’’ ‘‘project,’’ ‘‘target,’’
‘‘potential,’’ ‘‘would,’’ ‘‘could,’’ ‘‘should,’’ ‘‘continue,’’ and similar
expressions are intended to identify forward-looking statements, although
not all forward-looking statements contain these identifying words. We may
not actually achieve the plans, intentions or expectations disclosed in our
forward-looking statements, and you should not place undue reliance on
our forward-looking statements. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in the
forward-looking statements we make.

3. 3
Historical Revenue
$54
$71
$97
$119
$26 $32
2012 2013 2014 2015 1Q15 1Q16
• Security and identity platform for
authentication, access management
and secure communications for
healthcare providers and patients
• 1,500+ global healthcare customers
• 200+ new healthcare customers
annually over the last four years
• 97%+ healthcare customer renewal
Imprivata snapshot
$ in mm

4. 4
Investment highlights
1. Cybersecurity and clinician productivity are a priority in healthcare
2. Consistently adding new healthcare customers globally
3. Significant up-sell and cross-sell opportunities within our base
4. Large and expanding TAM of over $5B
5. Targeting EBITDA profitability by year end 2016

5. 5
Security in healthcare is front page news
“How Identify Theft Sticks you with Medical Bills”
“Is Anyone Really 'HIPAA Compliant’
In Healthcare?”
“Why Hackers Want your
Healthcare Data”
“90% of hospitals and
clinics
lose their patients' data”
“Stolen health credentials can go
for … about 10 or 20 times the value
of a U.S. credit card number”
“Medical identity theft: How the
healthcare Industry is failing
us”
“The Need to Secure E-Prescriptions”

6. 6
November 2015 J.P. Morgan report on hospital spending
identifies access and security as spending priorities.
Hospital spending priorities

7. 7
Why is patient information so difficult to secure?
CIO says: Protection and security of patient information is non-negotiable
– Patient information is more valuable, vulnerable and under attack
– HIPAA penalties have averaged $1.1M per organization since the 2009
Enforcement Rule was passed
– Potential criminal penalty: 10 years in prison in addition to a $250,000 fine
Doctors say: My job is to save lives… I am not responsible for security
– Security policies are viewed as slowing down access to systems
– Willingness to help equates to willingness to give out password
– Differentiating malware from legit dialogs takes time and technical skills
Lack of delineation between public and private space
– No personal ownership for shared workstations
– Open workstations left unattended

8. 8
Username and
passwords are used
for everything: logging
into an application,
CPOE, witness signing
Care providers enter
usernames and
passwords up to 70x a
day
PROBLEM IMPRIVATA ONESIGN
Replaces usernames
and passwords with
strong authentication –
finger biometric,
proximity badge, etc.
Streamlines workflows
to save up to 45
minutes per shift
Fast, secure access to patient information from wherever and whenever
it’s needed
Imprivata OneSign
Authentication
Management
Single
Sign-on
Virtual
Desktop
Access

9. 9
IMPRIVATA
21%
CARADIGM
9%
IBM
3%
MICROSOFT
3%
CITRIX
2%NOVELL
2%
SYMANTEC
2%
HEALTHCAST
1%
OTHER
7%
NO
SOLUTION
50%
• “Best in KLAS” in SSO
• Large greenfield opportunity
• High barriers to entry
– $50mm+ of R&D investment
– Covered by 15 patents
• Record number of displacements
in 2015
• Business model
– Per user perpetual license
– Annual recurring maintenance
– Services for workflow optimization
– Devices for authentication at
access points
• Global TAM of $3B
Imprivata OneSign
U.S. Acute Care Facility SSO Penetration
HIMSS Analytics data as of March 2016

10. 10
Passwords alone provide
just the bare minimum of
security
81% of surveyed hospitals
reported being hacked in
last 2 years
Traditional enterprise
authentication not suitable
for hospital workflows
PROBLEM IMPRIVATA CONFIRM ID
Centralizes identity and two-
factor authentication across all
workflows inside and outside
the hospital
Makes security invisible by
replacing passwords with
innovative and convenient
authentication methods
Increases e-prescribing rates
by 85%; Decreases risk of
hacking by up to 65%
Comprehensive identity and multi-factor authentication platform for healthcare
Imprivata Confirm ID
Strong
Authentication
Management
Fingerprint
Biometrics
Hands-Free
Authentication
Soft Tokens

11. 11
• Launched February 2015 with
EPCS
• 60 customers in first year,
38 OneSign customers
• Business model
– Subscription or perpetual with
maintenance
– Specialized biometric device
and token for strong
authentication
– Services for supervised
enrollment
and prescriber workflow
• Expanding product offering in
2016, to deliver a single, robust
solution for secure, multi-factor
authentication across healthcare
workflows
Imprivata Confirm ID

12. 12
Care providers use
insecure texting as a
fast, easy form of
communication in
delivery of care
Many hospitals still
rely on outdated pager
technology
PROBLEM IMPRIVATA CORTEXT
Enterprise security for
communicating:
- Provider to Provider
- Provider to Patient
Integration with EMR and
Critical Alerts
88% decrease in response
time from 2 hours to 15
minutes
Secure communication and messaging platform
Imprivata Cortext

13. 13
• “Best in KLAS” in Secure Messaging
• 247 customers as of 12/31/15, up
from 90 in 2014
– 90 customers had both OneSign
and Cortext
• Business model
– Subscription, cloud offering
– Priced per user per month
• Imprivata OneSign integration
Imprivata Cortext
Multi device support

14. 14
Positive patient identification using palm vein biometric technology
Imprivata PatientSecure
7-10% of patients are
misidentified when
their medical record is
being accessed
Fraud / identity theft
growing
at 22%
Joint Commission #1
National Patient Safety
Goal: Identity Patients
Correctly
PROBLEM IMPRIVATA PATIENTSECURE
Creates a 1:1 link between
a patient and multiple EMR
records
Helps improve patient
safety, reduce insurance
fraud, and decrease
operational costs
Reduce duplicate medical
records to 0.11%; 80x
better than national
average

15. 15
• Acquired HT Systems in April
2015
– 60 customers, 25 common
customers
– 22 employees, 3 in sales
– Generated over $6 million
in revenue in 2014
• Business Model
– Per patient ID perpetual license
– Palm vein biometric devices for
enrollment and authentication
– Services for implementation
– Annual recurring maintenance
• Estimated TAM $2 billion
Imprivata PatientSecure
# of patients in database
# of times 2+ patients share the same
last and first names
# of times when 2+ patients share the
same last and first names, and DOB
# of Maria Garcia’s with
the same DOB
Case study:

16. 16
Platform cross-selling opportunity
4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
North American Healthcare Customers
Multi-Product Customers Single Product Customers

17. 17
Partner ecosystem around authentication and
access management platform
EMR & strategic
resellers
Integrated
clinical workflow
authentication
Virtual desktop
infrastructure
Clinical access
endpoint
partnerships

18. 18
1,500+ healthcare customers globally
IDN
Academic
Community
Clinics / Specialties
International

19. Financial overview

20. 20
$0
$20
$40
$60
$80
$100
$120
$140
2012 2013 2014 2015 1Q15 1Q16
Delivering strong revenue growth
Revenue
$54
$71
$97
$ in mm
$25.6 $31.544%
45%
55%
46%
54%
50%
50%
49%
51%
56%
$119
45%
55%
PRODUCT
 Perpetual Licenses
 Subscriptions
 Devices
MAINTENANCE AND SERVICES
 Software Maintenance
 Technical Support
 Professional Services
 Deployment and Training

21. 21
• Stable recurring maintenance
revenue with 97% healthcare
retention rates
• 200+ new healthcare customers
annually over the last four years
• Expanding within existing customer
footprint
• No single end user customer >4% in
last 3 years
• 21% of revenue from outside US
High quality of revenues
Sales to
new
customers
Sales to
existing
customers
Software
maintenance
renewals and
Professional
Services
$ in mm
32% 32%
36%
35%
33%
38%
38%
43%
35%
30%
26%
22%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2012 2013 2014 2015

22. 22
Selected customers follow-on purchases
1,300 Bed
Hospital System 2012 2013 2014 2015 2016
Spend (in
thousands)
$226 $566 $90 $100 $375
Cumulative Total $226 $793 $883 $984 $1,359
OneSign
purchase
✓ ✓
Maintenance ✓ ✓ ✓ ✓ ✓
New Product ✓
325 Bed Hospital 2013 2014 2015 2016
Spend (in
thousands)
$256 $321 $387 $452
Cumulative Total $256 $321 $488 $864
OneSign
purchase
✓ ✓ ✓ ✓
Maintenance ✓ ✓ ✓ ✓
New Product ✓
100 Bed Hospital 2012 2013 2014 2015 2016
Spend (in
thousands) $39 $23 $24 $45 $21
Cumulative Total $39 $63 $88 $133 $155
OneSign
purchase
✓ ✓ ✓ ✓ ✓
Maintenance ✓ ✓ ✓ ✓ ✓
New Product ✓✓ ✓

23. 23
• Backlog includes deferred
revenue and committed
customer purchases
• 1Q16 backlog grew 28% over
1Q15
• 88% of 4Q15 backlog will be
recognized as revenue in 2016
Improving visibility through growing backlog
0
10
20
30
40
50
60
Backlog

24. 24
Attractive Long-Term Operating Model
FY
2012
FY
2013
FY
2014
FY
2015
Q1
2015
Q1
2016
FY 2016
Guidance
Target
Model
Gross Margin
75.2% 73.5% 69.1% 68.1% 67.4% 68.4% Up 70%+
S&M as % of
Revenue1 41.6% 42.9% 46.4% 44.0% 46.9% 45.1% 30%
R&D as % of
Revenue1 22.8% 27.6% 26.6% 26.5% 26.8% 27.6%
15-
18%
G&A as % of
Revenue1 8.4% 10.7% 12.4% 15.7% 17.9% 17.2% 10%
Adjusted
EBTIDA
Margin
4.3% (4.7%) (11.9%) (10.4%) (17.6%) (14.2%) (8%)-(6%) 20%+
1Includes Depreciation and Amortization and Stock Based Compensation.

25. Appendix

26. 26
GAAP Net Loss to Adjusted EBITDA
($’000) 2012 2013 2014 2015 Q1 2015 Q1 2016
GAAP net loss $1,048 $(5,523) $(16,736) $(23,067) $(6,699) $(6,674)
Income tax expense 109 108 169 838 37 140
Depreciation and
amortization
1,082 2,397 3,075 3,761 780 981
Other (expense)
income, net
90 (109) 722 567 478 (242)
Stock-based
compensation
450 640 1,612 4,155 701 1357
Change in fair value of
contingent liability
(431) (877) (376) 197 21 (101)
Shareholder litigation
costs
- - - - - 33
Acquisition costs - - - 709 163 -
Shelf registration and
offering costs
- - - 490 - -
Adjusted EBITDA $2,348 $(3,364) $(11,534) $(12,350) $(4,519) $(4,506)