The Christchurch-based side were in front for just 12 minutes on the night, as the Waratahs ran in four tries in a performance led by 23-year-old first five-eighths Tane Edmed.
The defeat leaves the Crusaders with a daunting task to get their first win of the year, with a trip to Lautoka next weekend to face the Fijian Drua away from home.
Penney said it’s a big learning curve for his the new-look Crusaders side.
“There’s still a bit of work to do there... they’re talented boys and we’ve got to make sure that they’re not too badly affected by today,” the coach said.
“We started well and then we fell into a bit of a hole. We made a few errors and gave away a few penalties and we weren’t able to build any momentum on the back of that.
“When we built pressure, we’d release it and they capitalised on their turnovers and got the maximum out of it.
“The yellow cards were very frustrating given our inability to build momentum, it makes it very difficult.”
With the loss, the Crusaders are now 10th on the ladder.
Earlier in Melbourne, Moana Pasifika beat the Fijian Drua 39-36 in a thriller.
Squads
Crusaders: Chay Fihaki, Sevu Reece, Levi Aumua, David Havili, Macca Springer, Taha Kemara, Noah Hotham, Cullen Grace, Tom Christie, Dominic Gardiner, Quinten Strange, Scott Barrett (c), Fletcher Newell, George Bell, George Bower.
Reserves: Quentin MacDonald, Joe Moody, Owen Franks, Jamie Hannah, Christian Lio-Willie, Mitchell Drummond, Ryan Crotty, Dallas McLeod.
Waratahs: Max Jorgensen, Mark Nawaqanitawase, Harry Wilson, Joey Walton, Dylan Pietsch, Tane Edmed, Jake Gordon (c), Langi Gleeson, Charlie Gamble, Fergus Lee-Warner, Hugh Sinclair, Jed Holloway, Harry Johnson-Holmes, Mahe Vailanu, Angus Bell.
Reserves: Julian Heaven, Hayden Thompson-Stringer, Daniel Botha, Miles Amatosero, Ned Hanigan, Teddy Wilson, Mosese Tuipulotu, Triston Reilly.
- RNZ