<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF HEALTHSTREAM, INC. FOR THE THREE
MONTHS ENDED MARCH 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               MAR-31-1999
<CASH>                                          33,550
<SECURITIES>                                         0
<RECEIVABLES>                                  396,712
<ALLOWANCES>                                    36,500
<INVENTORY>                                          0
<CURRENT-ASSETS>                             1,125,657
<PP&E>                                       1,071,243
<DEPRECIATION>                                 420,137
<TOTAL-ASSETS>                               1,125,657
<CURRENT-LIABILITIES>                        3,409,179
<BONDS>                                         29,076
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                    760,000
<COMMON>                                     1,804,898
<OTHER-SE>                                 (4,887,496)
<TOTAL-LIABILITY-AND-EQUITY>                 1,125,657
<SALES>                                        653,286
<TOTAL-REVENUES>                               653,286
<CGS>                                          294,223
<TOTAL-COSTS>                                  294,223
<OTHER-EXPENSES>                               286,093
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              92,788
<INCOME-PRETAX>                              (377,664)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                          (377,664)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (377,664)
<EPS-BASIC>                                     (0.12)
<EPS-DILUTED>                                   (0.12)