I think most jobs I applied to out of college had them. It is a good way to vet if someone can code before bringing them in for an interview and wasting a bunch of peoples' time. At my company we're currently struggling with not doing timed tests but not wasting too much of a candidate's time.
We hire a lot straight out of college, which I think is probably where this type of test is more common.
There were two jobs I was curious about that sent me to hackerrank.com with a six hour test and a twenty four hour test, respectively, in Amsterdam and Barcelona.
