LAGUNA BEACH, Calif.—Palantir Technologies Inc. Chief Executive Alexander Karp said he has softened his stance on a potential initial public offering after previously ruling it out.

"We are now positioned so we could go public," said Mr. Karp at the WSJDLive 2016 global technology conference on Wednesday. "The aggregate business will be profitable next year."

The Silicon Valley data-mining company, with a $20 billion valuation, is one of the most highly valued private firms in the world and counts some of the largest companies and government agencies as customers.

Palantir's workers "need to know they will have liquidity at a fair price," said Mr. Karp, who has let employees cash out some of their shares through offerings each year with private investors. He said the simplest plan now is a public offering, though he would still consider doing a private-equity transaction or redistributing the profits to employees.

Mr. Karp, who co-founded the company in 2004 with Peter Thiel and Joe Lonsdale, said he expects the company will be profitable next year.

Write to Greg Bensinger at greg.bensinger@wsj.com

(END) Dow Jones Newswires

October 26, 2016 12:35 ET (16:35 GMT)