<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORRESTER RESEARCH INC.'S DECEMBER 31, 1998 CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED IN FORM 10-K. </LEGEND> <MULTIPLIER> 1 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <EXCHANGE-RATE> 1 <CASH> 10,413,986 <SECURITIES> 56,069,332 <RECEIVABLES> 21,558,040 <ALLOWANCES> 400,000 <INVENTORY> 0 <CURRENT-ASSETS> 92,704,854 <PP&E> 12,638,493 <DEPRECIATION> 4,825,637 <TOTAL-ASSETS> 100,517,710 <CURRENT-LIABILITIES> 46,984,710 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 86,541 <OTHER-SE> 53,446,459 <TOTAL-LIABILITY-AND-EQUITY> 100,517,710 <SALES> 0 <TOTAL-REVENUES> 61,567,134 <CGS> 0 <TOTAL-COSTS> 22,037,828 <OTHER-EXPENSES> 30,347,219 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 12,138,965 <INCOME-TAX> 4,591,701 <INCOME-CONTINUING> 7,547,264 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 7,547,264 <EPS-PRIMARY> .89 <EPS-DILUTED> .81