11 Best Fundamentally Strong Penny Stocks to Buy Now

5. Vivid Seats Inc. (NASDAQ:SEAT)

Number of Hedge Fund Holders: 19

Vivid Seats Inc. (NASDAQ:SEAT) is an online ticket marketplace that facilitates the buying and selling of tickets for live events, including sports, concerts, theater, and other entertainment experiences. The company operates as a resale platform, connecting fans with third-party sellers offering tickets across a wide range of venues and price points. SEAT provides a proprietary technology platform, mobile app, and customer loyalty program to enhance the user experience and drive engagement. Revenue is generated primarily through service fees on ticket transactions.

In the latest Q4 2024, Vivid Seats Inc. (NASDAQ:SEAT) delivered $200 million in revenues, representing a 1% YoY increase, while adjusted EBITDA was $33 million, down 5% YoY. For the full year 2024, the company achieved $776 million in revenues, up 9% YoY, and $151 million in adjusted EBITDA, showing a 7% increase YoY. The company’s loyalty program demonstrated strong performance, with enrolled members making repeat orders 2-3x more frequently than non-enrolled customers, and repeat orders reaching 61% of total orders.

Looking ahead to 2025, Vivid Seats Inc. (NASDAQ:SEAT) expects marketplace GOV to be between $3.7 billion to $4.1 billion, revenues between $730 million to $810 million, and adjusted EBITDA between $110 million to $150 million. The company has maintained strong financial flexibility with approximately 1 turn of LTM net leverage and expectations of continued cash generation. Notable strategic developments include the successful integration of Vegas.com, which is yielding synergies through cross-listing and cross-selling, and the launch of European operations starting with the UK market. While facing increased competitive intensity in the market, management maintains a cautious outlook for early 2025 but expects to return to growth in the second half of the year. With 19 hedge funds owning the stock, SEAT is one of the best fundamental stocks to buy now.