Mercedes team principal Toto Wolff has revealed the signs from developments at the team's Brackley-based factory are "promising".
The Silver Arrows have struggled to make an impression this season, slipping behind Aston Martin in the pecking order and way off the pace of Red Bull.
Lewis Hamilton and Wolff have been forthright in their criticisms of the current machinery, though are resolute in their backing of those at the factory who are working tirelessly to provide a car capable of winning races.
Having bettered Ferrari comfortably at the Jeddah Corniche Circuit two weeks ago, Wolff said: "The progress we saw in Saudi Arabia was encouraging.
"We maximised the package we had and scored some solid points. More importantly, we continued to learn and understand more about the W14 and our development direction.
"Everyone back at base has been hard at work to turn these learnings into performance.
"The signs we are seeing back at the factory are promising. We have got to take it step by step, though, and won't get carried away until we see performance translated into lap time on track.
"The competitive order behind Red Bull is tight, with small margins having a big effect on points scored. There remains a significant gap to the front and that is ultimately what we are interested in closing."
'Not where we want to be'
F1 returns to Albert Park for the Australian Grand Prix this weekend with Mercedes hoping to secure a first podium of the season.
"We are looking forward to Australia," insisted Wolff.
"It's a country serious about its motorsport with a great racing tradition, and the fans are super passionate.
"Albert Park is a circuit with unique characteristics, which we will have to work hard to adapt to with the W14.
"As always, we will look to maximise the car we have, and score as many points as our potential currently allows.
"We are not where we want to be - but that won't stop us from racing hard and giving it everything we've got."