In this video I'm going to discuss why DocuSign (NASDAQ:DOCU) will continue to see success even after the pandemic is over because let's face it, e-signature and digital contracts are the future.

More than just e-signature

When most people think DocuSign, they just think about e-signature. How big can that be, right? Well, the CEO says the signing business is as big as $25 billion, and DocuSign has the largest market share at close to 900,000 customers. Which is not a lot in the grand scheme of things. So there's a lot of growth ahead on that front, but the company does so much more.

Agreement Cloud and CLM

First, there's DocuSign Agreement Cloud and CLM, where you can manage agreements. Companies will need to store, manage, and keep track of all these agreements, and that's where DocuSign's suite comes into play. Last year DocuSign acquired a company called Seal, which brings AI and analytical software to the mix. Its goal is to make any agreement between two parties or more digital. Instead of wasting time rewriting agreements, or having duplicates, forgetting a renewal, etc., you can use DocuSign's suite of products for all of it.

Growth and competition

DocuSign estimates high-single-digit penetration in the U.S. market and low-to-mid-single-digit penetration elsewhere. 

The main competitors in my eyes are Adobe and traditional pen and paper contracts. But they haven't stopped DocuSign from being the leader in the e-sign market and growing its customer base 42% CAGR since 2013.

If you have a long-term vision, do you think that in 10 years, people will still be using pen and paper to sign a contract? Or do you think it will all be done through a system like DocuSign or Adobe?

I've said this before: Digitalization is not even close to peaking. The world in 2030 will look very different. Don't let post-pandemic fears scare you out of a good investment.

*Stock prices used were the closing prices of April 9, 2021. The video was published on April 11, 2021.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.