<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM KANA
COMMUNICATIONS, INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

                                                  
<PERIOD-TYPE>                   12-MOS                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998             DEC-31-1999
<PERIOD-START>                             JAN-01-1998             JAN-01-1999
<PERIOD-END>                               DEC-31-1998             JUN-30-1999
<CASH>                                          12,955                   5,798
<SECURITIES>                                       160                   2,251
<RECEIVABLES>                                      877                   1,675
<ALLOWANCES>                                        60                     266
<INVENTORY>                                          0                       0
<CURRENT-ASSETS>                                14,073                  10,193
<PP&E>                                           1,301                   2,476
<DEPRECIATION>                                     260                     530
<TOTAL-ASSETS>                                  15,275                  12,325
<CURRENT-LIABILITIES>                            1,849                   5,364
<BONDS>                                              0                       0
<PREFERRED-MANDATORY>                                0                       0
<PREFERRED>                                         19                      19
<COMMON>                                            13                      15
<OTHER-SE>                                      13,034                   6,289
<TOTAL-LIABILITY-AND-EQUITY>                    15,275                  12,325
<SALES>                                          1,793                   2,795
<TOTAL-REVENUES>                                 2,049                   3,578
<CGS>                                               54                      72
<TOTAL-COSTS>                                      573                   1,213
<OTHER-EXPENSES>                                 9,040                  12,326
<LOSS-PROVISION>                                     0                       0
<INTEREST-EXPENSE>                                  36                      27
<INCOME-PRETAX>                                (7,378)                 (9,854)
<INCOME-TAX>                                         0                       0
<INCOME-CONTINUING>                            (7,378)                 (9,854)
<DISCONTINUED>                                       0                       0
<EXTRAORDINARY>                                      0                       0
<CHANGES>                                            0                       0
<NET-INCOME>                                   (7,378)                 (9,854)
<EPS-BASIC>                                     (1.72)                  (1.25)
<EPS-DILUTED>                                   (1.72)                  (1.25)