Davies praised the 'phenomenal' effort put in by his side but now wants them to start falling the right side of the results as they turn their attention to a return match with Dragons at the Arms Park on New Year's Day.
"We had plenty of the ball but we didn't arguably have it in the right areas and look after it well enough. We know we are capable of doing that so it is frustrating," he said.
"In terms of battling we gave everything, but what I am not pleased about is the way we used the ball.
"We got a point out of the game, but if we had been tidier with the possession we had we could have got a result. But I'm taking nothing away from Dragons, they battled hard and it was a heck of a game.
"Jason Tovey kicked well and credit to them, it is the end of part one. We knew what they would come with and both teams put a good display on.
"We have had two derbies now and been in them from start to finish, we are making progress and we have got to grind out results from the performances. We have had two tight games and they have both got away from us, which is exceptionally frustrating.
"The player's effort was phenomenal, I commend them for that, but we have got to learn and get better," he added.
"A couple of mistakes and indiscipline has cost us. We had enough of the ball but didn't use it well enough on the night. Both teams played with passion but they took the chances better than us.
"This is the end of part one and we have another part at the Arms Park on New Year's Day. It's the start of a New Year and we want a big start.
"We need more control and our kicking game needs to get us in the right areas. We have been doing that in Europe but tonight, and last time, we didn't do it. It's frustrating but there are positives from this game that we will keep working on."