Metronome Tunes Up SaaS Billing with Usage-Based Models Thanks to $43M Funding Round

By Greg Tavarez, TMCnet Editor  |  February 08, 2024

Billing operations within a company are frequently overlooked in terms of resource allocation, and are often perceived as mere administrative tasks (rather than critical components of revenue generation). The truth is simple — efficient billing processes are indispensable for the success of any business, as they directly impact revenue streams and customer satisfaction.

Neglecting billing can result in delayed product launches and hindered pricing adjustments as well as impede overall growth potential. That is why investing in robust billing systems and dedicated personnel is essential to ensure smooth operations and capitalize on revenue opportunities.

Metronome, a provider of usage-based billing for SaaS (News - Alert) companies, offers a platform that lets SaaS companies easily implement usage-based billing models, regardless of their complexity. This approach lets companies charge customers based on their actual usage of the software, rather than fixed subscription fees. The advantages of doing this are increased revenue, improved customer relationships and faster product iteration.

And there are some pretty big names already utilizing Metronome's platform, including OpenAI, Databricks and NVIDIA (News - Alert). These companies use Metronome to offer flexible pricing models that meet the needs of their diverse customer base and drive sustainable growth.

As it looks to continue to reimagine billing for SaaS, Metronome announced the successful closing of a $43 million Series B funding round. This latest infusion of capital brings Metronome's total funding to over $78 million since its inception in 2019.

“When we started Metronome, we spoke with hundreds of companies who were struggling to build and maintain usage-based and subscription billing infrastructure,” said Kevin Liu, Metronome CEO, who co-founded the company with CTO Scott Woody in 2019. “We built Metronome to be a powerful and flexible billing platform, but also simple to integrate and maintain – to help those companies move faster.”

Metronome is designed for speed of deployment, flexibility and ease-of-use. Once the initial platform integration is set up, teams can quickly launch new products and pricing, streamline revenue workflows and give customers real-time spend transparency.

Because of the platform’s capabilities, the company has seen huge momentum, with revenue growing six-times over the last year. Much of this is driven by companies’ increasing shift to usage-based and hybrid pricing, as well as rising interest in AI.

The round was led by NEA, a global venture capital firm with a track record in supporting innovative technology companies. Existing investors Andreessen Horowitz and General Catalyst also participated in the funding round, demonstrating their continued confidence in Metronome's vision and execution.

Edited by Alex Passett
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