<ARTICLE>      5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
ALLAIRE CORPORATION'S FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED 
SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK>          0001016139
<NAME>         ALLAIRE CORPORATION
<MULTIPLIER>   1,000
<CURRENCY>     U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<EXCHANGE-RATE>                                      1
<CASH>                                           1,879
<SECURITIES>                                         0
<RECEIVABLES>                                    2,868
<ALLOWANCES>                                       288
<INVENTORY>                                        138
<CURRENT-ASSETS>                                 4,877
<PP&E>                                           4,329
<DEPRECIATION>                                 (1,257)
<TOTAL-ASSETS>                                   8,330
<CURRENT-LIABILITIES>                           10,818
<BONDS>                                              0
<PREFERRED-MANDATORY>                           12,673
<PREFERRED>                                        260
<COMMON>                                            41
<OTHER-SE>                                    (16,682)
<TOTAL-LIABILITY-AND-EQUITY>                     8,330
<SALES>                                         11,716
<TOTAL-REVENUES>                                13,903
<CGS>                                            1,262
<TOTAL-COSTS>                                    4,117
<OTHER-EXPENSES>                                17,803
<LOSS-PROVISION>                                    53
<INTEREST-EXPENSE>                                 101
<INCOME-PRETAX>                                (7,988)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (7,988)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (7,988)
<EPS-PRIMARY>                                   (2.84)
<EPS-DILUTED>                                   (2.84)