As several others already described, their initial step is completion of a coding assignment. Your work is then submitted to what seems like a very nit picky review process.
As a developer with decades of experience, and scoring a perfect 400 on the Sun Certified Java Developer certification, I was quite surprised I didn't pass due to my code being "hard to read".
I added javadoc, named things more descriptively than their provided class name suffixed with "Impl", followed OO design concepts of loose coupling & tight cohesion, commented where appropriate, and implemented factory method and strategy design patterns for ease of extensibility. I also included a readme-like file explaining my design decisions. Given I'm currently employed and could only dedicate so much time to the project, I recognized there were still some short comings and extra features I could have implemented.
None of that though was apparently enough to overcome their very subjective definition of readable code. I'm not above not being selected for a very competitive position, but when I asked for more details on my review, issues with "hard-codings" (yes, plural, from the reviewer) and code readability was all I got...weird.
I do understand that they created the coding assignment tailored to what they're specifically looking for, with requirements vague enough as to not totally give away their passing criteria. But IMHO I'm guessing they're hyper-focusing on aspects that most may not consider important enough to spend the time on.