EverQuote ($EVER) - Recent drop seems excessive

I have been looking at EverQuote ($EVER) after the recent pullback and I'm wondering whether the market reaction might be a bit strong. For anyone unfamiliar, EVER runs a digital insurance marketplace connecting consumers with carriers and agents. It is profitable, generating cash, and currently trading on fairly modest multiples. A lot of the recent weakness seems tied to AI concerns and competitors improving their AI capabilities. The broader fear seems to be that AI search could disrupt lead generation businesses. I do not want to dismiss that risk. AI clearly changes behaviour and will continue to do so. But one practical data point... I manage a fairly large website with roughly 5 million visits per annum. Less than 2 percent of that traffic currently comes from ChatGPT. That is obviously just one example, but it suggests to me that AI traffic is still small compared to traditional channels. Google Ads traffic for example is the largest chunk at 45% and I can see that EverQuote is leaning heavy on this. That makes me question whether the market is pricing in disruption that may take longer to play out. From the latest quarter: • Revenue up 20 percent year on year • Record EBITDA and net income • Around 146 million dollars in cash • No debt • Share buybacks underway Valuation looks inexpensive relative to many marketplace type businesses. Low earnings multiple. Historically single digit EV to EBITDA. Less than 1 times sales. The bigger variable in my view is the insurance cycle, not AI. Management mentioned that around 80 percent of their top carrier partners are still spending below prior peaks. They also expect Q4 to grow sequentially despite normal seasonality. If the underwriting environment stays supportive, growth could continue. If it turns, then the downside case becomes clearer. What I like: • Profitable • Debt free • Cash on the balance sheet • Operating leverage showing • A potential path to meaningful revenue growth over the next few years What worries me: • Carrier ad budgets are cyclical • Advertising costs can rise • Competitive pressure • Small and mid cap volatility Would be interested to hear counterarguments, especially from anyone closer to the insurance ad space.