Quarter over quarter (QoQ)
A comparison of a figure with the immediately preceding quarter, which shows short-term momentum but is affected by seasonality.
Quarter over quarter, or QoQ, compares a figure with the previous quarter. It shows short-term momentum and is the most current growth comparison, but it is affected by seasonality. A retailer's fourth quarter is usually higher than its third for seasonal reasons, so QoQ comparisons can mislead.
On our site, QoQ is shown beside YoY for quarterly data, and seasonal businesses are flagged. Use YoY for the trend and QoQ for the near-term turn.
Traders care because a change in QoQ momentum can signal an inflection before YoY growth shows it, especially for companies with stable seasonality.
Worked example (illustrative numbers, not real data): revenue is 300 million dollars in the third quarter and 330 million in the fourth, a QoQ rise of 10 percent. Last year's fourth quarter rose 15 percent over the third, so this year's lift is weaker than the seasonal norm.