It allows your company to learn, to get a feel for the person's ability to communicate, and to stay away from stupid things like tests.
It's also easily the best interviewing process I've ever experienced.
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edit: Since it appears that multiple people have taken this to represent an hour+ long presentation, let me clarify here.
A better way to think about this would be a long-form discussion about a topic. The initial "talk" would be 5-10 minutes, with a Q&A afterwards to ask for clarifying questions.
I've been working in this field for over 25 years. I spent roughly 30 minutes of prep for the interview and it was easily the best interview process I've ever experienced.