Stripe acquired Metronome for $1 billion in December 2025, a 2.1x increase from the company's last private valuation of $470M.

Founded in 2020, Metronome raised $128 million across multiple funding rounds. The company secured a $50 million Series C in February 2025 led by NEA, with participation from Andreessen Horowitz, General Catalyst, Greyhound Capital, and Workday Ventures.

Earlier rounds included a $43 million Series B in January 2024 and a $30 million Series A in February 2022. Andreessen Horowitz participated in multiple rounds.

Metronome provides billing infrastructure between a software product and customer invoices, built for companies that charge based on consumption rather than fixed subscriptions.

Engineering teams send raw usage events to Metronome through streaming APIs or batch uploads. These events can be anything measurable: API calls made, tokens processed, GPU seconds consumed, or gigabytes stored. The platform ingests billions of these events daily with low-latency processing.

Finance and product teams use Metronome's SQL-based interface to define billable metrics without writing code. They can create queries like count API calls where model equals GPT-4 or sum storage usage by customer tier. These metrics update continuously rather than through nightly batch jobs.

The pricing layer operates separately from metrics, letting teams attach rate cards, tiered pricing, minimums, and customer-specific overrides without rewriting the underlying measurement logic. Sales teams can configure complex enterprise contracts with prepaid credits, annual commitments, and custom terms while inheriting the same master price book.

Metronome streams real-time usage data back into customer dashboards and triggers alerts when spending thresholds are reached. At billing cycle close, the platform generates invoices and syncs with payment processors, accounting systems, and revenue recognition tools.

Metronome operates as a B2B SaaS platform with usage-based pricing that scales with customer consumption. The company charges based on the volume of events processed, typically ranging from $0.03 to $0.06 per thousand events, plus monthly platform fees and a small percentage of gross merchandise value for enterprise accounts.

The business model benefits from the secular shift toward consumption pricing in software. Usage-based pricing is now used by 85% of large software companies, up from 50% in 2021, as companies move away from seat-based subscriptions toward models that align pricing with customer value.

Metronome's architecture separates metering, pricing, and contract management into distinct layers. This decoupling allows customers to change pricing without rewriting measurement logic and enables rapid experimentation with new pricing models. The platform handles complex scenarios like hybrid pricing, prepaid credits, and multi-product bundling that would require significant engineering resources to build in-house.

The company's gross margins reflect its position as infrastructure software with data processing costs. Unlike pure SaaS companies that achieve 80%+ gross margins, Metronome operates closer to 70% gross margins due to compute and storage costs associated with processing billions of events in real-time.

Revenue expansion happens primarily through consumption growth as customers scale their usage-based businesses. As AI companies process more API calls or infrastructure companies handle more compute workloads, Metronome's revenue grows proportionally without requiring traditional sales-driven upsells.

Stripe has rapidly upgraded its billing capabilities to compete directly with specialized metering platforms. The company launched Meter Event API v2 in 2024, supporting 100,000 events per second with real-time alerting capabilities. Stripe's advantage lies in owning the full payment stack, offering seamless integration from usage tracking to credit card processing.

Zuora acquired metering startup Togai in 2024 to add consumption billing to its subscription management platform. The company targets finance teams already using Zuora for revenue recognition and subscription management. Chargebee has rebuilt its usage rating engine and offers 2.4 billion free usage events to compete for AI company business, though its revenue-share pricing model faces criticism for cost opacity at scale.

Orb raised $44 million in Series B funding in 2024 and positions itself as revenue infrastructure for AI companies. The platform emphasizes developer experience and flexible pricing models, competing directly with Metronome for high-growth AI startups.

M3ter focuses on mid-market B2B SaaS companies with complex multi-attribute pricing and credit pack models. Amberflo, founded by ex-AWS engineers, offers decoupled metering and billing with pay-as-you-go pricing for self-service customers.

Lago offers open-source usage-based billing with $34 million in funding from FirstMark. The platform targets price-sensitive companies that want to self-host their billing infrastructure. Kill Bill provides open-source subscription and usage billing, appealing to companies with significant engineering resources and specific customization needs.

Newer entrants like Flexprice and Zenskar focus on specific verticals like AI agent metering or telecom billing, often at lower price points than established platforms.

Metronome is building specialized features for AI companies that need to manage token-based pricing, credit wallets, and real-time spend controls. The platform offers packaged AI pricing kits that include soft and hard usage caps, predictive spend alerts, and credit-based billing models.

As generative AI adoption spreads beyond infrastructure companies into mainstream SaaS applications, Metronome can capture revenue from companies adding AI features to existing products. The company's real-time processing capabilities can handle AI workloads that generate millions of billable events per minute.

Metronome is expanding beyond billing into revenue recognition, margin analytics, and financial reporting. The platform already provides ASC-606 revenue recognition guidance and could add native accounting integrations to function as a broader revenue operations system.

By moving up-stack into CFO-level functionality, Metronome can capture budget currently spent on separate revenue recognition, forecasting, and analytics tools. This expansion would increase average contract values and create additional switching costs for customers.

The company added support for 16 international currencies and native AWS and Azure marketplace integrations in 2025. These capabilities enable multi-cloud commit deals and reduce friction for international customers that transact through cloud marketplaces.

Stripe's global payment infrastructure enables access to international markets where Metronome previously had limited reach. The integration allows Metronome to serve mid-market customers globally without building separate payment processing relationships in each geography.

Stripe integration: Metronome's acquisition by Stripe introduces integration complexity that could disrupt existing customer relationships and slow product development. The company needs to balance its API-first model with Stripe's platform strategy, risking churn among customers who prefer vendor-neutral billing infrastructure.

Commoditization pressure: As usage-based billing standardizes, platforms like AWS, Google Cloud, and Microsoft Azure may build native metering that reduces demand for third-party billing infrastructure. The risk rises if cloud providers seek to capture more value from AI and infrastructure customers' billing workflows.

AI pricing evolution: The rapid evolution of AI pricing could outpace Metronome's product development, especially as companies test outcome-based pricing, performance guarantees, and hybrid human-AI workflows that do not map cleanly to traditional usage metrics like tokens or API calls.