<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)