Bob Peck from SunTrust Robinson Humphrey published an earnings preview for Twitter (NYSE: TWTR). Usually when a company preannounces, as was the case with Twitter, the earnings call is just a technicality but in the case of Twitter, Monthly Average Users (MAUs) will be key to maintaining valuation levels. Beyond MAUs, Peck outlines the monetization initiatives the company is attempting.

Before the IPO, Twitter management guided investors to focus on MAUs as a leading metric for the health of the business. Now, MAUs are a major focus on a quarterly basis. Although the company preannounced revenue and EBITDA at the high end of expectations, MAUs and expensees are still unknown. Peck thinks that "management needs to break investors from overly focusing on this one metric and instead understand the significance of the monthly 1B "reach" Twitter provides to its users and advertisers. Only a few platforms have this scale". For the quarter, Peck is expecting MAU net adds of +3M vs. 2M last quarter.

Beyond tactical metrics, the company is expected to focus on its new initiatives to drive revenue: Doubleclick integration in 4Q, eCommerce (Buy button), video ads, Moments, improved targeting (TellApart), and search & carousel ad units.

Twitter reports earnings on 10/27/15

The analyst reiterated a Buy rating and $38 price target on Twitter.

For an analyst ratings summary and ratings history on Twitter, Inc. click here. For more ratings news on Twitter, Inc. click here.

Shares of Twitter, Inc. closed at $30.28 yesterday.