<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLAIRE
CORPORATION'S FINANCIAL STATEMENTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 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>                   12-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   DEC-31-1998
<EXCHANGE-RATE>                                          1
<CASH>                                               1,847
<SECURITIES>                                             0
<RECEIVABLES>                                        3,621
<ALLOWANCES>                                           287
<INVENTORY>                                            141
<CURRENT-ASSETS>                                     6,049
<PP&E>                                               5,093
<DEPRECIATION>                                     (1,609)
<TOTAL-ASSETS>                                       9,953
<CURRENT-LIABILITIES>                               14,562
<BONDS>                                                  0
<PREFERRED-MANDATORY>                               12,673
<PREFERRED>                                            751
<COMMON>                                                41
<OTHER-SE>                                        (19,267)
<TOTAL-LIABILITY-AND-EQUITY>                         9,953
<SALES>                                             17,187
<TOTAL-REVENUES>                                    20,512
<CGS>                                                1,915
<TOTAL-COSTS>                                        5,996
<OTHER-EXPENSES>                                    25,252
<LOSS-PROVISION>                                        53
<INTEREST-EXPENSE>                                     170
<INCOME-PRETAX>                                   (10,770)
<INCOME-TAX>                                             0
<INCOME-CONTINUING>                               (10,770)
<DISCONTINUED>                                           0
<EXTRAORDINARY>                                          0
<CHANGES>                                                0
<NET-INCOME>                                      (10,770)
<EPS-PRIMARY>                                       (3.67)
<EPS-DILUTED>                                       (3.67)