This tutorial covers setting up a webhook endpoint using Node-RED to receive SMS messages from Vonage API. The prerequisites include having a Vonage API account and a virtual phone number, as well as an optional ngrok service for exposing the local server to the internet. To set up the endpoint, users need to define a webhook endpoint in their Node-RED editor, expose their local server to the internet, associate the webhook endpoint with the virtual number, and then send a text message to test the setup. The received SMS messages will contain various key values such as msisdn, to, text, type, keyword, and message-timestamp, which can be used for further processing or analysis.