Good morning, and welcome to our third quarter presentation. My name is Alexander Woxen, and with me is Ragnar Kjos, our Chief Financial Officer. Today, we will provide you with an update on the highlights, financials, and outlook. We are in the midst of a strategy process and will revert with ambition and strategy in our next update. After the presentation, please feel free to come join us for the Q&A. Our market is growing, and it carried strong momentum into record high revenue this quarter at NOK 118 million. The overall margin continues to reflect the product and customer mix, and is under pressure from increased component prices. A strong positive though is that we expect the component price anomalies to further stabilize, reducing the heavy-hitting PPVs and improving margins into next year.
Our priorities remain unchanged, with software monetization being a key initiative, increasing customer value, as well as improving our margins. As part of this, a major software milestone for Huddly this fall was a launch of Speaker Framing, shipping this quarter. We are proud to strengthen our partnerships with Google and Crestron, stepping up on the growing hybrid workspace market, enabling us broad distribution and market access. Despite the lower performance in our channel business, this strategy remains important to us for our brand position and our overall margins. With the organizational changes announced last quarter, combined with the stronger products, we are well positioned to regain growth in channel next year. Amid geopolitical tension, recession, increased protectionism, our market has proven fairly resilient. We are on the path to meet our 2022 guidance on both revenue and gross margin.
Before handing it over to Ragnar, I would like to show you a product teaser from the launch of our AI director multi-camera experience. Please enjoy.
Huddly Studio is all about adding production value to your meetings. Huddly Studio is a product and a concept that we've been working on for years now. We're using learnings from TV production and movie production industry to create engaging experiences, in the meeting room. We're doing that using artificial intelligence and networked cameras. We're using the same networked cameras that are already available for purchase today. For decades now, video conferencing has been around, and one thing that hasn't changed much is the vantage point into the meeting room. There's been one camera either above or below the monitor or the TV screen, and what we're seeing is that by combining cameras, by combining vantage points onto the meeting room, you get more engaging experiences, you get more interesting views, and you're also able to cater for very different scenarios.
What's new here is that we're using a new technology, artificial intelligence, to automate this experience, which hasn't been available to this industry before. We got professional TV producers to work with us to teach us about the techniques and the rhythm that TV producers use to create engaging experiences for entertainment purposes, and then we applied that for the meeting room. These are shots like, reaction shots, listening shots, speaker shots, overview shots. This is really groundbreaking. It's really changing the industry by providing these new experiences to the room. It allows people in the room to talk freely without thinking about whether they're facing the camera or not, and it allows the far end participant to be a natural part of the conversation.
We're so excited to demonstrate the power of this technology that we thought we'd put it to the ultimate test by using Huddly Studio to make the first-ever short film directed by AI.
Thank you, Vegard, for showcasing our great new product. Now, over to the financials. Q3 was a record revenue quarter for Huddly, with revenue of NOK 118 million, and that's up 34% compared to last year. Year to date, we have revenue of NOK 339 million, which is already surpassing the full year revenue of last year. However, as discussed last quarter, our gross margin may decrease before we see an improvement, and this is indeed what has happened in Q3. We concluded the quarter with a gross margin of 34%. Going forward, we expect to see improvements in the gross margin through improvements on the revenue side and on the cost side, and we hope to see effects of this into 2023. However, we also experience a high inflation in the market and cost increases through our manufacturers and suppliers.
Our PPV came down, still at 3% of gross margin, but slightly down from last quarter. We expect it to come further down, but with a lagging effect due to inventory consumption.
Our OpEx concluded at NOK 30 million this quarter, and that's up from NOK 18 million a year ago. This increase is mainly explained by a 40% increase year-on-year in terms of FTEs. This increase explains Huddly's investments in R&D and product development, but also into structure, system, and scalability. Going forward, we remain restrictive on cost. Our backlog concluded at NOK 138 million, down from NOK 196 million last quarter, and this is mainly explained by a lower duration in this quarter's backlog. It could also be an indication of an easing supply chain, where our customers are reducing their inventories. Our cash position concluded at NOK 206 million, and we had a cash burn of NOK 51 million in the quarter. However, half of this could be explained by one-off items, in particular related to our option settlement.
We had no interest-bearing debt at the end of the quarter, and we have a solid financial position. With that, I leave it to you, Alexander.
Thank you, Ragnar. Now it's time to look ahead. We are in a tailwind market with penetration of rooms increasing rapidly, and we are well positioned with our solutions. Smaller rooms are typically where the IQ and S1 works the best. For the larger rooms, the L1 delivers top performance and a truly unique experience with our new Speaker Framing technology. Our solutions are flexible and cater to classrooms as well as open areas, in particular with the new AI director multi-camera experience shipping next year. Our priorities remain unchanged. Improving gross margin and reviving profitable growth are imperative. For the end of year, we are reiterating our guidance with revenue on the low end of the NOK 450 million-NOK 550 million range and a gross margin percentage on the low end of the 35%-50% range.
Closing up, Huddly has a solid financial position, and the board of directors considers the current liquidity position to be more than adequate for the ongoing operations. With that said, thank you for tuning in, and please stay with us for the Q&A session. Thank you.