<ARTICLE>                                           5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
KANA COMMUNICATIONS, INC'S QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED
SEPTEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER>                                                            1000

                                                   
<PERIOD-TYPE>                                       9-mos
<FISCAL-YEAR-END>                                                DEC-31-1999
<PERIOD-END>                                                     SEP-30-1999
<CASH>                                                                57,200
<SECURITIES>                                                           7,427
<RECEIVABLES>                                                          2,715
<ALLOWANCES>                                                             447
<INVENTORY>                                                                0
<CURRENT-ASSETS>                                                      68,501
<PP&E>                                                                 4,714
<DEPRECIATION>                                                           772
<TOTAL-ASSETS>                                                        72,593
<CURRENT-LIABILITIES>                                                 10,665
<BONDS>                                                                    0
<PREFERRED-MANDATORY>                                                      0
<PREFERRED>                                                                0
<COMMON>                                                                  29
<OTHER-SE>                                                            61,247
<TOTAL-LIABILITY-AND-EQUITY>                                          72,593
<SALES>                                                                5,442
<TOTAL-REVENUES>                                                       7,174
<CGS>                                                                    124
<TOTAL-COSTS>                                                          2,938
<OTHER-EXPENSES>                                                      23,877
<LOSS-PROVISION>                                                           0
<INTEREST-EXPENSE>                                                         0
<INCOME-PRETAX>                                                     (19,455)
<INCOME-TAX>                                                               0
<INCOME-CONTINUING>                                                 (19,455)
<DISCONTINUED>                                                             0
<EXTRAORDINARY>                                                            0
<CHANGES>                                                                  0
<NET-INCOME>                                                        (19,455)
<EPS-BASIC>                                                           (2.53)
<EPS-DILUTED>                                                         (2.53)