Shares of Global-E Online Ltd. (GLBE) plummeted 22.34% in pre-market trading on Wednesday, despite the cross-border e-commerce facilitator reporting first-quarter results that exceeded analyst expectations and announcing an extension of its strategic partnership with Shopify.

Global-E reported Q1 revenue of $189.9 million, surpassing the FactSet consensus estimate of $187.8 million. The company's adjusted gross margin came in at 45.4%, while adjusted EBITDA reached $31.6 million. Global Merchandise Volume (GMV) for the quarter stood at $1,243 million. Despite these positive results, investors reacted negatively to the report.

In a significant development, Global-E and Shopify signed a new multi-year strategic partnership agreement, extending their existing relationship. The three-year agreement covers both first-party and third-party merchant of record solutions and allows for additional providers with Shopify merchants. However, this seemingly positive news failed to prevent the stock's sharp decline. The company also maintained its full-year 2025 guidance, projecting revenue in the range of $917 million to $967 million, which aligns with the current FactSet estimate of $929.4 million. The sustained outlook suggests that Global-E's management remains confident in its growth trajectory despite the market's apparent skepticism. Analysts speculate that investors may have been expecting more aggressive growth or improved profitability metrics, leading to the significant sell-off despite the seemingly positive news.