But while admitting that exiting the competition in the last eight was a major disappointment, Davies is confident his team can bounce back next term.
"It was a strange old game. We played our part in it and it was a great learning experience for this group of players," said Davies, who felt a few key moments cost the Cherry and Whites dear.
"I think it's the first time in four seasons that Gloucester have got to a European quarter-final. Those players will have learnt that you really have to be on your mettle in games like this.
"We couldn't back up the performance against Harlequins from last week. We just lacked a little bit of intensity.
"There was a lot of effort but that's where this group is at the moment - it's learning.
"The yellow cards put a lot of pressure on us and we also conceded points after we had scored.
"We played a lot of rugby but Biarritz showed that they are a very clinical side. Their driving line-out was very powerful and very strong and their other points came from broken play.
"There were a couple of key moments. If we'd have stopped their driving maul they wouldn't have scored two of their tries. If we'd have scored before they did with that break from Sione Kalamafoni it might have been a different story. If we hadn't had two yellow cards, who knows?"