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Introduced by Darwiche (2011), sentential decision diagrams (SDDs) are essentially as tractable as ordered binary decision diagrams (OBDDs), but tend to be more succinct in practice. This makes SDDs a prominent representation language, with many applications in artificial intelligence and knowledge compilation. We prove that SDDs are more succinct than OBDDs also in theory, by constructing a family of boolean functions where each member has polynomial SDD size but exponential OBDD size. This exponential separation improves a quasipolynomial separation recently established by Razgon (2014), and settles an open problem in knowledge compilation (Darwiche, 2011).