The Reds won 4-0 at Anfield after also winning 1-0 in the first leg at the Bernabeu.
He said: “We are very disappointed and it is sad that we are out and we are obviously not happy with the result.
“We conceded two early goals, and I had my doubts about both. There looked to be a foul for the first and the penalty was not clear at all.
“But Liverpool were excellent and deserved to go through. They were too good on the night and there is no point in denying that, they deserved to go through.
“We tried all we could, but the way the goals came so early, it made the game complicated as soon as we went two behind.”