<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLAIRE CORPORATION FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <CASH> 3,247 <SECURITIES> 496 <RECEIVABLES> 3,698 <ALLOWANCES> (502) <INVENTORY> 141 <CURRENT-ASSETS> 8,033 <PP&E> 6,497 <DEPRECIATION> (2,197) <TOTAL-ASSETS> 12,708 <CURRENT-LIABILITIES> 17,724 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 97 <OTHER-SE> (18,785) <TOTAL-LIABILITY-AND-EQUITY> 12,708 <SALES> 17,966 <TOTAL-REVENUES> 21,362 <CGS> 1,937 <TOTAL-COSTS> 5,994 <OTHER-EXPENSES> 32,520 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (17,139) <INCOME-TAX> 0 <INCOME-CONTINUING> (17,139) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (17,139) <EPS-BASIC> (2.39) <EPS-DILUTED> (2.39)