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The tutorial describes how to extract the last name from a list of names using the "TEXTAFTER" function in Excel. The formula starts with "TEXTAFTER" and takes two arguments: the first argument is the cell containing the full name, and the second argument is specified as a space (" ") to act as the delimiter between names. The instance number is set to -1 to indicate that the last name should be extracted. After completing the formula, it suggests copying it into the cells below to apply the same extraction method to additional names.