"We started well and that's some of the best football we've played. We seemed to lose our way a bit but managed to get back in it," Gray said in a post-match interview.
Swansea were booed off the pitch at halftime for a limp performance. Manager Paul Clement reacted by introducing forward Tammy Abraham and midfielder Roque Mesa for the second half and the switch helped them to turn around their fortunes.
Abraham equalised for the hosts in the 56th minute, scoring Swansea's first home league goal of the season as he slotted in from close range after Watford keeper Heurelho Gomes had parried Wilfried Bony's initial shot.
Swansea dominated the second half but failed to convert their opportunities and were punished as Watford created several late chances before Richarlison latched on to a deflected pass from Mesa and charged forward to score the winner in the 90th minute.
"We've got to keep going with our great start to the season," said Watford forward Troy Deeney, who deflected Mesa's pass towards Richarlison.
Swansea, who have just one league win so far, travel to West Ham United next Saturday while Watford take on West Bromwich Albion at the Hawthorns.
(Reporting by Aditi Prakash in Bengaluru; Editing by Clare Fallon)
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