TMT Associate interview - operating model question

Hi, I just had an interview for an associate position in the TMT team of one of the BBs. I was asked a question I've never heard or come across before and I really had no clue how to answer/structure it.

Interviewer: Could you a) walk me through an operating model you've built for a TMT company and b) run me through how you went about making projections

Me: *chats absolute shit*

I've never come across this before. How should you structure and answer this question?

Unsure if I will make it to the next round they said I will hear back soon, but I want to be better prepared if I make it to the second round.

Thank you.

2 Comments
 
Most Helpful

Had a similar question in one of my interviews (for an SA spot -- the expectations for quality / depth are likely different for the AS level), but:

I essentially talked about the drivers for revenue:

  • Projected average revenue per user (or client if it's enterprise-level), by looking at past ARPU to look for general trends as well as management commentary (can get more granular if needed by talking about the drivers -- e.g., how marginal pricing is impacted by scale)
  • Projected number of users -- management discussion of new projects/expectations and the average user retention rate for the first years followed by a simple growth % for later years (once again, this could probably be more detailed for an AS interview but wasn't touched upon in my SA)

Then I basically walked through how to build a simple operating model:

  • COGS as a % of sales -- how much will they grow with scale 
  • SG&A as % of sales -- How will these costs scale
  • R&D as a % of sales -- How will these costs scale
  • D&A as a % of sales 
  • BS assumptions 
  • CF assumptions 
  • ETC...

For this last bit, it's hard to give a proper example without a company, but I interpreted it in my interview as just touching on how I went about / I would go about making projections from a high-level. I think all of those parts could be drilled into more by an interviewer if there are certain industry or company-specific trends you were trying to capture (division restructurings, government R&D subsidies, etc...)

All in, I think it probably makes the most sense to build a simple model for a couple of companies you are interested in, and then talk about that process, or if you are already in TMT banking just talk about the model's you built for processes you've been apart of. 

Hopefully, you find this helpful.

 

Ratione repudiandae qui unde magni alias ut. Alias aut aut deserunt consequuntur mollitia. Aut ullam blanditiis accusamus nesciunt. Sed minus blanditiis autem.

Occaecati aut quia et necessitatibus incidunt minima. Dicta quas autem delectus voluptas voluptatem dolor. Velit et quas accusamus odio. Nesciunt non fugiat labore reiciendis commodi dolorem est.

Qui nulla deserunt et illo. Non explicabo accusamus culpa sed ut minima recusandae. Dolor sed illum quidem soluta voluptatum voluptatem.

Sint labore illo sed saepe consequuntur. Doloremque laudantium debitis distinctio. Ab natus est corporis dolorem quis eos. Molestias necessitatibus alias est vitae modi ipsum enim. Tenetur quas praesentium aliquam omnis sunt saepe nam saepe.

Career Advancement Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

October 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 12 97.4%

Professional Growth Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

October 2026 Investment Banking

  • Vice President (16) $429
  • Associates (56) $261
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
CompBanker's picture
CompBanker
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”