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

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               SEP-30-1999
<CASH>                                      13,914,324
<SECURITIES>                                    28,688
<RECEIVABLES>                                  372,378
<ALLOWANCES>                                    37,910
<INVENTORY>                                          0
<CURRENT-ASSETS>                            14,298,197
<PP&E>                                       1,486,079
<DEPRECIATION>                                 505,532
<TOTAL-ASSETS>                              16,607,386
<CURRENT-LIABILITIES>                        2,426,224
<BONDS>                                        133,239
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                 18,135,338
<COMMON>                                     3,244,568
<OTHER-SE>                                  (7,331,983)
<TOTAL-LIABILITY-AND-EQUITY>                16,607,386
<SALES>                                      1,764,103
<TOTAL-REVENUES>                             1,764,103
<CGS>                                        1,073,654
<TOTAL-COSTS>                                1,073,654
<OTHER-EXPENSES>                             1,250,034
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             173,467
<INCOME-PRETAX>                             (2,739,486)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                         (2,739,486)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                (2,739,486)
<EPS-BASIC>                                      (0.76)
<EPS-DILUTED>                                    (0.76)