Microsoft L65 Interview Experience

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· Senior Backend / Ads / Distributed Systems
March 9, 2026 · 44 reads

Summary

I interviewed for a Senior Backend / Ads / Distributed Systems role at Microsoft, navigating 5 rounds that thoroughly assessed my skills in coding, system design, and behavioral aspects, including deep dives into advertising, payment systems, and analytics.

Full Experience

Interview Experience – Senior Backend / Ads / Distributed Systems (5 Rounds)


🔹 Round 1 – Coding + Ads Fundamentals

Focus Areas:

  • Project deep dive
  • 3–4 behavioral questions
  • Complete Ads ecosystem explanation
    • Advertiser → DSP → Ad Exchange → SSP → Publisher
    • Real-time bidding (RTB) flow
    • Ranking & auction basics
  • End-to-end ad serving lifecycle

Coding Question:

  • Map of Map encoding problem
  • Required graph search
  • Implemented, executed, and discussed optimizations

🔹 Round 2 – Ads HLD + Search + ML

1️⃣ Design HLD for Microsoft Bing Ads

Designed high-level architecture similar to Microsoft Bing Ads.

Covered:

  • Campaign setup & management
  • Budget pacing
  • Ranking logic & quality score
  • Auction mechanism
  • Publisher integration via SSP
  • End-to-end ads delivery flow

2️⃣ Search API Design

Problem:
Design an API for: “Plumbers near Kondapur”

Discussion Points:

  • Data ingestion pipeline
  • Indexing (inverted index + geo-spatial indexing)
  • Semantic matching
  • Hybrid retrieval (BM25 + embeddings)
  • Ranking signals & personalization

3️⃣ ML & LLM Discussion

  • Random Forest vs SVM
  • RAG (Retrieval-Augmented Generation) with LLMs
  • Trade-offs: classical ML vs LLM-based systems
  • Agentic frameworks for automation in ads optimization

🔹 Round 3 – Payment System Design (Razorpay-like)

Designed a payment gateway system similar to Razorpay.

Covered:

Payment Flow

  • App → Gateway → Bank
  • OTP handling
  • 3DS flow
  • Callback/webhook handling

Reliability & Safety

  • Idempotency keys
  • Retry mechanisms
  • Handling bank timeouts
  • Double debit protection

System Concerns

  • DDoS protection
  • Fraud detection
  • Rate limiting
  • Observability

Integration & UX

  • Integration across app, gateway, and bank APIs
  • Localization & language support
  • UI rendering based on user country/currency

🔹 Round 4 – Hiring Manager + Bar Raiser (Onsite)

System Design: Website Activity Analytics

Requirement:

  • Track clicks/actions/users
  • 18-month lookback
  • 5-minute granularity
  • Filter by language, country, and other attributes

Discussion Points:

  • Event-based schema (fact + dimension tables)
  • SQL vs Time-Series DB
  • Partitioning strategy & pruning
  • Logged-in vs logged-out user tracking
  • Data pipelines & SLAs

Advanced Topics

  • Bloom Filters
  • Count-Min Sketch
  • Hashing in Redis
  • Sampling & standard deviation use cases
  • Transformer architecture basics
  • Effect of Temperature, Top-K, Top-P on LLM outputs
  • AI tool adoption metrics & measuring agentic AI impact

🔹 Round 5 – (LLD) - Onsite

Coding on Whiteboard

  • LRU Cache (write code on board)

System & Behavioral Discussion

  • Eviction strategies
  • Caching trade-offs
  • Reason for leaving
  • Leadership & conflict handling
  • Notice period expectations

Interview Questions (6)

1.

Map of Map Encoding Problem

Data Structures & Algorithms

I was given a map of map encoding problem that required graph search. I had to implement the solution, execute it, and discuss optimizations.

2.

Design High-Level Architecture for Microsoft Bing Ads

System Design

I was asked to design a high-level architecture similar to Microsoft Bing Ads. This included campaign setup & management, budget pacing, ranking logic & quality score, auction mechanism, publisher integration via SSP, and the end-to-end ads delivery flow.

3.

Design Search API for Local Services

System Design

I needed to design an API for the search query: 'Plumbers near Kondapur'. Discussion points included data ingestion pipeline, indexing (inverted index + geo-spatial indexing), semantic matching, hybrid retrieval (BM25 + embeddings), ranking signals & personalization.

4.

Design a Payment Gateway System (Razorpay-like)

System Design

I designed a payment gateway system similar to Razorpay. This involved detailing the payment flow (App → Gateway → Bank, OTP handling, 3DS flow, Callback/webhook handling), reliability & safety considerations (Idempotency keys, Retry mechanisms, Handling bank timeouts, Double debit protection), system concerns (DDoS protection, Fraud detection, Rate limiting, Observability), and integration & UX aspects (Integration across app, gateway, and bank APIs, Localization & language support, UI rendering based on user country/currency).

5.

Design Website Activity Analytics System

System Design

The requirement was to design a system to track clicks/actions/users with an 18-month lookback and 5-minute granularity, allowing filtering by language, country, and other attributes. Discussion points included event-based schema (fact + dimension tables), SQL vs Time-Series DB, partitioning strategy & pruning, logged-in vs logged-out user tracking, and data pipelines & SLAs.

6.

Implement LRU Cache

Data Structures & Algorithms

I was asked to implement an LRU (Least Recently Used) Cache on the whiteboard.

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