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And importantly, we expect the cost reduction initiatives to reduce our operating cash outflow by more than half with significant quarter-over-quarter improvement starting in Q1 of our fiscal 2024.
And in Pennsylvania, despite topline decreasing low single digits quarter-over-quarter, we grew our adjusted EBITDA by almost 20%.
As Billy mentioned earlier, solid loan growth continued throughout the year as we ended 2022 with quarter-over-quarter net organic loan and lease growth at a 17% annualized pace excluding PPP loans.
Average AUM was essentially flat quarter-over-quarter, and our average fee realization rose to 52.1 basis points, which contributed to higher revenue compared with the first quarter of the year.
Average weekly sales in China grew quarter-over-quarter and we expect this to continue into Q4 with average weekly sales growth of low to mid-single digits, resulting in similar sized comp growth for the quarter.
But what I will say is that we're very comfortable with the targets that we've set this year to 500,000 locations, that'll put us at around 3.6 million fiber enabled locations exiting this year, with a ramp throughout the year quarter-over-quarter.
Capitalized costs also dropped, and the amount embedded in adjusted EBITDA went from $26 million to $17 million quarter-over-quarter.
Cash burn was $13.6 million in the quarter, continuing the quarter-over-quarter trend of a slowing rate of cash burn.
Europe was also the only region with a significant quarter-over-quarter increase in its statistics on data breaches.
Excluding the SBIC debt, our debt-to-equity ratio decreased modestly quarter-over-quarter to approximately 1.58 times with slightly lower debt balances partially offset by lower fair value on our investments.
However, the gross margin declined by 6.4 percentage points quarter-over-quarter, mainly due to the November implementation of a 36% excise tax on the e-vapor products.
Including the hedge – impact of hedges, yields reached 7.98%, up 69 basis points quarter-over-quarter, and we expect yields to migrate towards 9% throughout 2023.
In Q3, it’s no surprise that the lion’s share of our 26% quarter-over-quarter revenue ramp was driven by 160% increase in demand for PyroThin EV thermal barriers for General Motors Ultium platform vehicles.
Non-interest-bearing deposits were down $1 billion quarter-over-quarter, a byproduct of the aforementioned seasonality from tax payments, cash deployment of excess funds and continued pressures from the higher rate environment.
No, the largest impact quarter-over-quarter for base fees was driven by Sutter as it transitioned mid-Q4.
Now, for the fourth quarter of 2022, we reported net income of $337 million and earnings per share of $2.37, which grew 55% annualized quarter-over-quarter.
Obviously, we noticed it's basically flat quarter-over-quarter this quarter.
Of course, from first half, we'll certainly see quarter-over-quarter in the first half of the year, the benefits that we saw in the back half of 2022.
On a quarter-over-quarter basis, monthly active users were down 30%, and the last 12 months, active buyers were down 8%.
Or is that just sort of a quarter-over-quarter fluctuation that's not really representative of much?