As you mentioned, there has been a very competitive landscape in the game market this year. I think it’s more than that. We think that the overall game business or game industry in terms into a new space where it’s very hard to gain new users and it has become a more saturated market. In the past year, where we still see incremental growth of gamers in the market, the secret to success is to bring a good quality game. But in the market where a saturated market, only quality is not enough unless you have the top of the top game quality and the right timing. [Foreign Language] As it come to end of this year, we’ve noticed that we will find out that most of the new games launched this year have not met their original expectation. But the quality of those games have been good.
The reason why is that the game was set up three years, probably three years ago, where there was still incremental gamer growth. Their target is to build a good game, not necessarily have to be the top game or the most unique game. And three years later, the time has changed. From the user perspective, they would notice that for this year, there’s a lot of new games. But they all look kind of the same, probably with different artistic designs. And for those game developers, they have turned into a rat race of the minor details. Those rat race wouldn’t necessarily means new users and new income and new profits for users. They don’t necessarily have to try out this new game who looked the same with others because they already have a game they’ve been devoted in.
So that means not necessarily the game market is shrinking or less active on the contrary, we still see the gamer has been very active from Bilibili’s data perspective. The viewers in our game content verticals, the DAU and their time spend are actually increasing a lot. They also pay close attention to new games. But the new game, which can convert real new users, need to be very unique, very different from what the market is already offering. Having said that, we think the time has changed. The standards to invest in new games have changed. Now we think there are three key criteria for a new game to succeed. One is long-term operations. Second is to be the top of a niche market or be a super top titles in the market. And lastly is focused on the ROI.
And in the past, the copycat type of projects setup or the rat race type of R&D investment does not work anymore. That’s exactly why we have been reviewing and adjusting our in-house development projects because some of the projects were established based on the old standards and based on new market and new standards, those projects is very likely to be loss-making when the game came online. That’s why we are doing those adjustments and streamline our project. After this adjustment of our in-house development game, we still have a few titles that we think will remain competitive in the current market. We will be very paying close attention to the money invested in and focus our limited resource on the very selective titles who can meet those new standards.
We think the things that we’re doing with our project adjustment is correct. This movement is not only being done by Bilibili, and it’s actually across the industry, and it’s not necessarily a bad thing. We have returned to the fundamental of game developing, which for this industry, the key competitiveness is innovation and who can really succeed in this industry is the one with the most brilliant idea, the one with the most innovative game making can prevail and succeed. Lastly, I want to emphasize that Bilibili’s platform, there are large amounts of young users that have young gamers has been very, very active on our platform. And Bilibili was still the most popular game video content platform in China with a very high density of young generations.
And also for our team games development team, they also have the sense and understanding of Chinese gamers. What we need to do is realize those advantage and translate that into game developing.
Juliet Yang: Thank you, operator, next question please.
Operator: Next question comes from the line of Zhang Lei from Bank of America. Please go ahead.
Zhang Lei: [Foreign Language] Thanks management for taking my question and questions regarding margin. So you noticed that we have operated distance improvement in gross margin. And can you give us some outlook for Q4? And how do you look at your full year loss control target you made [indiscernible]? And any change to our breakeven target than 2024? Thank you.
Sam Fan: Okay. This is Sam. I will take this question. In Q3, our gross profit grew by 38% year-over-year, and our GPM improved five consecutive quarters to 25%. We expect our gross profit margin can continue to improve sequentially in the Q4, as there is more revenue contribution from ad revenue. At the same time, we narrowed our non-GAAP operating loss by 31% [ph] in Q3, and we expect we can narrow our non-GAAP operating loss even more in Q4 compared with Q3. That will help us to achieve our initial financial target to reduce our non-GAAP operating loss by RMB 3 billion in 2023. So we do keep our initial financial goal unchanged. Notably, our operating cash flow has been positive in Q3 and indicating the business operation head into positive cycle.
