Michael Daley may not have become premier of NSW but that didn't stop the Labor Party celebrating its win in the Sydney seat of Coogee.
The coalition have been returned for a third term, but it's not yet known if it will be a majority or minority government with the NSW Labor leader conceding defeat before 10pm on Saturday at Coogee Bay Hotel.
Although Mr Daley admitted the results were disappointing, he was visibly gleaming from Labor's win in Coogee which was previously held by the Liberals with margin of 2.9 per cent margin.
Labor's Marjorie O'Neill snatched the seat from the Liberal's Bruce Notley-Smith with a swing of 5.5 per cent to Labor.
"This woman has done an amazing job in a short period of time," Mr Daley told the cheering crowd.
The crowd of about 200 Labor Party faithful erupted in roars and cheers when the win was announced.
Mr Daley became leader 134 days ago following the forced resignation of Luke Foley and said it wasn't long enough to cut through to the electorate.
"I had a short time to do what I needed to do," he told the Labor function in conceding defeat.
He remained fairly upbeat in his speech, promising to continue to work with passion to make NSW a better place.
The Labor leader's family, nicknamed on the campaign trail as the "Daley clan" were cheering with pride as he walked off stage.
His mother Mary said she was "very proud" of his efforts.
"He's done a wonderful job," she told reporters.
While the ABC called the win for the coalition by about 8.30pm, Labor sources insisted it was too early to tell.
But by 9pm Labor MP Matt Thistlethwaite admitted the results were "disappointing".
The federal member for Kingsford Smith said it looked likely the coalition would win.
"Some of those key marginals we did need to win, the results haven't flowed our way," he told reporters at the event on Saturday.
"It's looking likely they (coalition) will reform government rather than a Labor win."