<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF HEALTHSTREAM, INC. FOR THE SIX
MONTHS ENDED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               JUN-30-1999
<CASH>                                       3,967,456
<SECURITIES>                                         0
<RECEIVABLES>                                  563,548
<ALLOWANCES>                                    38,000
<INVENTORY>                                          0
<CURRENT-ASSETS>                             4,514,458
<PP&E>                                       1,219,206
<DEPRECIATION>                                 470,850
<TOTAL-ASSETS>                               5,296,814
<CURRENT-LIABILITIES>                        2,260,069
<BONDS>                                         64,165
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  5,887,500
<COMMON>                                     3,056,776
<OTHER-SE>                                  (5,971,696)
<TOTAL-LIABILITY-AND-EQUITY>                 5,296,814
<SALES>                                      1,112,519
<TOTAL-REVENUES>                             1,112,519
<CGS>                                          702,665
<TOTAL-COSTS>                                  702,665
<OTHER-EXPENSES>                               741,125
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             139,052
<INCOME-PRETAX>                             (1,478,264)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                         (1,478,264)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (1,478,264)
<EPS-BASIC>                                      (0.43)
<EPS-DILUTED>                                    (0.43)