What happened

Shares of DocuSign (DOCU -0.66%) climbed 25.8% for the first half of 2021, according to S&P Global Market Intelligence. This rally built on market-crushing gains of 200% the growth stock delivered in 2020 as DocuSign continued to dominate the electronic-signature market in the midst of a global pandemic.

The advance for the first half of this year easily outpaced the 14.4% returns of the S&P 500 and carried DocuSign stock to a new all-time high. The results were driven by accelerating revenue growth and improving profit metrics.

A person signing a digital signature on a tablet.

Image source: Getty Images.

So what

Back in March, DocuSign reported stellar growth for the fiscal year ended Jan. 31, 2021, with revenue of $1.5 billion surging 49% year over year. Perhaps more importantly, billings -- a sales-growth metric which includes changes in deferred revenue -- grew even faster, climbing 56% to $1.7 billion. This shows that the company has a significant chunk of subscription sales for the coming year already locked in. At the same time, adjusted earnings per share (EPS) of $0.90 nearly tripled from $0.31 in the prior-year quarter. 

DocuSign, not content to rest on its laurels, saw its growth accelerate in the first quarter, with revenue of $469.1 million, up 58% year over year. Billings continued its robust growth, up 54% to $527.4 million. Adjusted EPS of $0.44 more than tripled compared to $0.12 in the prior-year quarter.

Now what

DocuSign controls a whopping 70% of the e-signature market, but the company still has plenty of worlds left to conquer. 

The DocuSign Agreement Cloud picks up where digital signatures leave off, managing the entire lifecycle of an agreement. By automating the changes, updates, and renewal of agreements, DocuSign is saving businesses time and money. 

It also provides the company with a largely untapped opportunity, doubling DocuSign's total addressable market to $50 billion. When considered in the context of the company's total revenue of $1.5 billion last year, the opportunity becomes clear. 

Finally, DocuSign has a history of issuing a conservative forecast, leaving room for later increases. For the current fiscal year, the company is expecting revenue to increase by roughly 40%, up from its initial guidance of 35% growth. 

Given DocuSign's consistent execution, market dominance, and large and growing market opportunity, the company has a long and potentially lucrative road ahead.