James Chapron’s side were beaten 48-29 by Irish giants Leinster A at Ystrad Mynach with scrum-half Davies among the try scorers.
It was an entertaining encounter, but Davies believes his team are heading in the right direction despite the result.
“The game with Leinster was a bit frustrating in the end,” he said. “When we went in at half time we were in a good position. We were playing well and 21-12 up and at that stage we thought it was going to be a good game for us.
“But we didn't really control the second half and it’s hard for me to say whether it was a harsh final score or not. It would have been a different game if we had scored in the last few minutes of the first half.”
The Dragons scored four tries, were in control at the break, and still remained very much in the game up to the hour mark.
In the end, though, four late tries sealed it for the unbeaten visitors, who are now one win away from reaching the inaugural Celtic Cup final.
Leinster got off to a flying start with a second minute try from Adam Byrne, but were then hit by a hat-trick of home scores from Chris Coleman, Davies and Tom Hoppe.
The game Dragons weren't finished there and bagged a bonus point with a Matthew Screech try after the break.
But a try in each half from livewire flanker Scott Penney launched the Leinster fightback and brought the Irish raiders back to within two points.
The Screech try dented the revival, but there was still more to come from the visitors.
The first of two tries from centre Jimmy O'Brien helped to tie things up at 26-26 after 55 minutes before Nick McCarthy, Caelan Doris, Adam Byrne and O'Brien again rounded off proceedings with four more tries to make victory safe.
“There was some good stuff to take from the game as far as we are concerned,” said Davies.
Ahead of facing the Scarlets – who are still in contention for the title – Davies added: “I think we just need to keep doing what we're doing really. We’ve blooded a lot of young players.
“On the whole it's a young group but a group that’s great to be a part of and I think we’ve played some good, attacking rugby.
“We need to keep going as we are with the style of rugby we’re trying to play, but it would be nice to get the win next week to finish the tournament off."